Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 25, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ENVA | ||
Entity Registrant Name | Enova International, Inc. | ||
Entity Central Index Key | 0001529864 | ||
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 Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 36,288,776 | ||
Entity Public Float | $ 432,517,489 | ||
Title of 12(b) Security | Common Stock, $.00001 par value per share | ||
Name of Exchange of which registered | NYSE | ||
Entity Interactive Data Current | Yes | ||
Entity File Number | 1-35503 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 45-3190813 | ||
Entity Address, Address Line One | 175 West Jackson Blvd. | ||
Entity Address, City or Town | Chicago | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60604 | ||
City Area Code | 312 | ||
Local Phone Number | 568-4200 | ||
Document Transition Report | false | ||
Document Annual Report | true | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | Portions of the Company’s Proxy Statement for the 2020 Annual Meeting of stockholders are incorporated by reference into Part III of this report. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | ||
Assets | ||||
Cash and cash equivalents | [1] | $ 297,273 | $ 35,895 | |
Restricted cash | [1] | 71,927 | 45,069 | |
Loans and finance receivables at fair value | 1,241,506 | [1] | 1,187,583 | |
Loans and finance receivables, net | [1] | 1,062,650 | ||
Income taxes receivable | 32,859 | |||
Other receivables and prepaid expenses | [1] | 40,301 | 31,643 | |
Property and equipment, net | 79,417 | 54,540 | ||
Operating lease right-of-use asset | 40,123 | 19,586 | ||
Goodwill | 267,974 | 267,013 | ||
Intangible assets, net | 26,008 | 2,185 | ||
Other assets | [1] | 43,546 | 22,912 | |
Total assets | 2,108,075 | 1,574,352 | ||
Liabilities and Stockholders' Equity | ||||
Accounts payable and accrued expenses | [1] | 124,071 | 122,163 | |
Operating lease liability | 67,956 | 35,712 | ||
Income taxes currently payable | 2,624 | |||
Deferred tax liabilities, net | 48,129 | 48,683 | ||
Long-term debt | [1] | 946,461 | 991,181 | |
Total liabilities | 1,189,241 | 1,197,739 | ||
Commitments and contingencies (Note 11) | ||||
Stockholders' equity: | ||||
Common stock, $0.00001 par value, 250,000,000 shares authorized, 41,936,784 and 35,764,943 shares issued and 35,762,926 and 32,974,714 outstanding as of December 31, 2020 and 2019, respectively | 0 | 0 | ||
Preferred stock, $0.00001 par value, 25,000,000 shares authorized, no shares issued and outstanding | ||||
Additional paid in capital | 187,981 | 63,791 | ||
Retained earnings | 849,466 | 372,681 | ||
Accumulated other comprehensive loss | (6,898) | (3,066) | ||
Treasury stock, at cost (6,173,858 and 2,790,229 shares as of December 31, 2020 and 2019, respectively) | (113,201) | (56,793) | ||
Total Enova International, Inc. stockholders' equity | 917,348 | 376,613 | ||
Noncontrolling interest | 1,486 | |||
Total stockholders' equity | 918,834 | 376,613 | ||
Total liabilities and stockholders' equity | $ 2,108,075 | $ 1,574,352 | ||
[1] | Includes amounts in consolidated variable interest entities (“VIEs”) presented separately in the table below. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value per share | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 41,936,784 | 35,764,943 |
Common stock, shares outstanding | 35,762,926 | 32,974,714 |
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 | 6,173,858 | 2,790,229 |
CONSOLIDATED BALANCE SHEETS (Co
CONSOLIDATED BALANCE SHEETS (Consolidated VIEs) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | ||
Assets | ||||
Cash and cash equivalents | [1] | $ 297,273 | $ 35,895 | |
Restricted cash | [1] | 71,927 | 45,069 | |
Loans and finance receivables at fair value | 1,241,506 | [1] | 1,187,583 | |
Loans and finance receivables, net | [1] | 1,062,650 | ||
Other receivables and prepaid expenses | [1] | 40,301 | 31,643 | |
Other assets | [1] | 43,546 | 22,912 | |
Total assets | 2,108,075 | 1,574,352 | ||
Liabilities of consolidated VIEs, included in total liabilities above | ||||
Accounts payable and accrued expenses | [1] | 124,071 | 122,163 | |
Long-term debt | [1] | 946,461 | 991,181 | |
Total liabilities | 1,189,241 | 1,197,739 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Assets | ||||
Cash and cash equivalents | 420 | 420 | ||
Restricted cash | 64,811 | 42,354 | ||
Loans and finance receivables at fair value | 528,877 | |||
Loans and finance receivables, net | 420,690 | |||
Other receivables and prepaid expenses | 4,827 | 9 | ||
Other assets | 1,639 | 2,161 | ||
Total assets | 600,574 | 465,634 | ||
Liabilities of consolidated VIEs, included in total liabilities above | ||||
Accounts payable and accrued expenses | 3,056 | 3,171 | ||
Affiliate note payable | 4,065 | |||
Long-term debt | 329,855 | 304,598 | ||
Total liabilities | $ 336,976 | $ 307,769 | ||
[1] | Includes amounts in consolidated variable interest entities (“VIEs”) presented separately in the table below. |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Consolidated VIEs) (Parenthetical) $ in Thousands | Dec. 31, 2019USD ($) |
Allowance for losses | $ 176,939 |
Variable Interest Entity, Primary Beneficiary | |
Allowance for losses | $ 38,540 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Revenue | $ 1,083,710 | $ 1,174,757 | $ 972,621 |
Change in Fair Value | (399,517) | ||
Cost of Revenue | (602,894) | (503,405) | |
Net Revenue/Gross Profit | 684,193 | 571,863 | 469,216 |
Expenses | |||
Marketing | 69,780 | 115,132 | 95,960 |
Operations and technology | 96,284 | 84,262 | 78,367 |
General and administrative | 140,600 | 109,204 | 105,143 |
Depreciation and amortization | 19,732 | 15,055 | 14,200 |
Total Expenses | 326,396 | 323,653 | 293,670 |
Income from Operations | 357,797 | 248,210 | 175,546 |
Interest expense, net | (86,691) | (75,604) | (79,364) |
Foreign currency transaction gain (loss), net | 514 | (216) | (2,318) |
Gain on bargain purchase | 163,999 | ||
Loss on early extinguishment of debt | (827) | (2,321) | (24,991) |
Equity method investment income | 628 | ||
Income before Income Taxes | 435,420 | 170,069 | 68,873 |
Provision for income taxes | 57,191 | 42,053 | 5,301 |
Net income from continuing operations before noncontrolling interest | 378,229 | 128,016 | 63,572 |
Less: Net income attributable to noncontrolling interest | 85 | ||
Net income from continuing operations | 378,144 | 128,016 | 63,572 |
Net (loss) income from discontinued operations | (300) | (91,404) | 6,526 |
Net income attributable to Enova International, Inc. | $ 377,844 | $ 36,612 | $ 70,098 |
Earnings (loss) per common share – basic: | |||
Continuing operations | $ 11.86 | $ 3.80 | $ 1.87 |
Discontinued operations | (0.01) | (2.71) | 0.19 |
Earnings (loss) per common share – basic | 11.85 | 1.09 | 2.06 |
Earnings (loss) per common share – diluted: | |||
Continuing operations | 11.71 | 3.72 | 1.81 |
Discontinued operations | (0.01) | (2.66) | 0.18 |
Earnings (loss) per common share – diluted | $ 11.70 | $ 1.06 | $ 1.99 |
Weighted average common shares outstanding: | |||
Basic | 31,897 | 33,715 | 33,993 |
Diluted | 32,302 | 34,398 | 35,176 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net income including noncontrolling interest | $ 377,929 | $ 36,612 | $ 70,098 | ||
Other comprehensive (loss) gain, net of tax: | |||||
Foreign currency translation (loss) gain | [1],[2] | (3,832) | 10,739 | (5,097) | |
Reclassification of certain deferred tax effects(2) | 346 | (1,622) | [3] | ||
Total other comprehensive (loss) gain, net of tax | (3,832) | 10,739 | (6,719) | ||
Comprehensive Income | 374,097 | 47,351 | 63,379 | ||
Net income attributable to noncontrolling interest | (85) | ||||
Foreign currency translation gain attributable to noncontrolling interests | (80) | ||||
Comprehensive income attributable to the noncontrolling interest | (165) | ||||
Comprehensive income attributable to Enova International, Inc. | $ 373,932 | $ 47,351 | $ 63,379 | ||
[1] | Net of tax benefit (provision) of $1,830, $(3,329) and $974 for the years ended December 31, 2020, 2019 and 2018, respectively. | ||||
[2] | See Note 1 “Reclassification of AOCI to Net Income” for additional detail. | ||||
[3] | Amount represents the reclassification of stranded tax effects from AOCI to retained earnings resulting from the change in the federal corporate income tax rate under the Tax Cuts and Jobs Act. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Tax benefit (provision) of foreign currency translation loss (gain) | $ 1,830 | $ (3,329) | $ 974 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Treasury Stock | Total Enova International, Inc. Stockholders'Equity | Total Enova International, Inc. Stockholders'EquityCumulative Effect, Period of Adoption, Adjustment | Noncontrolling Interest | |
Balance at Dec. 31, 2017 | $ 281,687 | $ 29,781 | $ 264,695 | $ (7,086) | $ (5,703) | |||||||
Balance, in shares at Dec. 31, 2017 | 33,933,000 | (428,000) | 281,687,000 | |||||||||
Stock-based compensation expense | 11,660 | 11,660 | $ 11,660 | |||||||||
Shares issued for vested RSUs, in shares | 604,000 | |||||||||||
Shares issued for stock option exercises | 6,734 | 6,734 | 6,734 | |||||||||
Shares issued for stock option exercises, in shares | 320,000 | |||||||||||
Net income attributable to Enova International, Inc. | 70,098 | 70,098 | 70,098 | |||||||||
Foreign currency translation (loss) gain, net of tax | (5,097) | (5,097) | $ (5,097) | |||||||||
Purchases of treasury shares, at cost | (17,314) | $ (17,314) | ||||||||||
Purchases of treasury shares, at cost, in shares | (844,000) | (17,314,000) | ||||||||||
Balance at Dec. 31, 2017 | (7,086) | |||||||||||
Reclassification of certain deferred tax effects | 1,622 | [1] | 1,622 | (1,622) | ||||||||
Balance at Dec. 31, 2018 | 347,768 | 48,175 | 336,415 | (13,805) | $ (23,017) | |||||||
Balance, in shares at Dec. 31, 2018 | 34,857,000 | (1,272,000) | 347,768,000 | |||||||||
Stock-based compensation expense | 11,967 | 11,967 | $ 11,967 | |||||||||
Accelerated vesting on RSUs for discontinued operations | 94 | 94 | 94 | |||||||||
Accelerated vesting on RSUs for discontinued operations, in shares | 5,000 | |||||||||||
Shares issued for vested RSUs, in shares | 540,000 | |||||||||||
Shares issued for stock option exercises | 3,555 | 3,555 | 3,555 | |||||||||
Shares issued for stock option exercises, in shares | 363,000 | |||||||||||
Net income attributable to Enova International, Inc. | 36,612 | 36,612 | 36,612 | |||||||||
Foreign currency translation (loss) gain, net of tax | 10,739 | 10,739 | $ 10,739 | |||||||||
Purchases of treasury shares, at cost | (33,776) | $ (33,776) | ||||||||||
Purchases of treasury shares, at cost, in shares | (1,518,000) | (33,776,000) | ||||||||||
Balance at Dec. 31, 2018 | (13,805) | |||||||||||
Reclassification of certain deferred tax effects | (346) | (346) | $ (346) | |||||||||
Balance at Dec. 31, 2019 | $ 376,613 | 63,791 | 372,681 | (3,066) | $ (56,793) | |||||||
Balance (Adjustments for New Accounting Pronouncement) at Dec. 31, 2019 | $ 98,941 | $ 98,941 | $ 98,941 | |||||||||
Balance, in shares at Dec. 31, 2019 | 35,764,943 | 35,765,000 | (2,790,000) | 376,613 | ||||||||
Stock-based compensation expense | $ 18,041 | 18,041 | $ 18,041 | |||||||||
Acquisition of OnDeck | 107,281 | 105,960 | 105,960 | $ 1,321 | ||||||||
Acquisition of OnDeck, shares | 5,566,000 | |||||||||||
Shares issued for vested RSUs, in shares | 589,000 | |||||||||||
Shares issued for stock option exercises | 189 | 189 | 189 | |||||||||
Shares issued for stock option exercises, in shares | 17,000 | |||||||||||
Net income attributable to Enova International, Inc. | 377,844 | 377,844 | 377,844 | |||||||||
Foreign currency translation (loss) gain, net of tax | (3,752) | (3,832) | $ (3,832) | 80 | ||||||||
Purchases of treasury shares, at cost | (56,408) | $ (56,408) | ||||||||||
Purchases of treasury shares, at cost, in shares | (3,384,000) | (56,408,000) | ||||||||||
Net income attributable to noncontrolling interest | 85 | 85 | ||||||||||
Balance at Dec. 31, 2019 | 376,613 | (3,066) | ||||||||||
Balance at Dec. 31, 2020 | $ 918,834 | $ 187,981 | $ 849,466 | $ (6,898) | $ (113,201) | $ 1,486 | ||||||
Balance, in shares at Dec. 31, 2020 | 41,936,784 | 41,937,000 | (6,174,000) | 917,348 | ||||||||
[1] | Amount represents the reclassification of stranded tax effects from AOCI to retained earnings resulting from the change in the federal corporate income tax rate under the Tax Cuts and Jobs Act. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows from Operating Activities | |||
Net income before noncontrolling interest | $ 377,929 | $ 36,612 | $ 70,098 |
Less: Net loss (income) from discontinued operations | 300 | 91,404 | (6,526) |
Net income from continuing operations | 378,229 | 128,016 | 63,572 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 19,732 | 15,055 | 14,200 |
Amortization of deferred loan costs and debt discount | 12,699 | 6,000 | 6,201 |
Change in fair value | 399,517 | ||
Cost of revenue | 602,894 | 503,405 | |
Stock-based compensation expense | 18,041 | 11,967 | 11,660 |
Gain on bargain purchase | (163,999) | ||
Loss on early extinguishment of debt | 827 | 2,321 | 24,991 |
Operating leases, net | (2,014) | (1,548) | |
Lease termination and cease-use costs | 370 | ||
Deferred income taxes, net | 3,240 | 4,741 | 23,007 |
Other | 55 | ||
Changes in operating assets and liabilities: | |||
Finance and service charges on loans and finance receivables | 68,848 | (36,572) | (21,306) |
Other receivables, prepaid expenses and other assets | (5,601) | (12,801) | (6,670) |
Accounts payable and accrued expenses | (18,088) | 13,781 | 11,190 |
Current income taxes | 29,740 | 70,384 | (26,821) |
Cash flows from operating activities - continuing operations | 741,171 | 804,608 | 603,484 |
Cash flows from operating activities - discontinued operations | (300) | 44,031 | 81,356 |
Net cash provided by operating activities | 740,871 | 848,639 | 684,840 |
Cash Flows from Investing Activities | |||
Loans and finance receivables originated or acquired | (1,033,041) | (1,807,299) | (1,453,262) |
Loans and finance receivables repaid | 1,036,027 | 956,243 | 819,318 |
Acquisitions, net of cash acquired | 109,920 | ||
Purchases of property and equipment | (29,491) | (20,062) | (14,656) |
Other investing activities | 168 | 27 | 251 |
Cash flows from investing activities - continuing operations | 83,583 | (871,091) | (648,349) |
Cash flows from investing activities - discontinued operations | (70,306) | (72,584) | |
Net cash provided by (used in) investing activities | 83,583 | (941,397) | (720,933) |
Cash Flows from Financing Activities | |||
Borrowings under revolving line of credit | 100,250 | 337,049 | 203,000 |
Repayments under revolving line of credit | (224,750) | (287,049) | (181,000) |
Borrowings under securitization facilities | 152,983 | 322,800 | 348,813 |
Repayments under securitization facilities | (507,023) | (242,203) | (332,916) |
Issuance of senior notes | 375,000 | ||
Repayments of senior notes | (345,000) | ||
Debt issuance costs paid | (388) | (3,500) | (13,010) |
Debt prepayment penalty paid | (827) | (1,392) | (18,828) |
Payment of promissory note | (3,000) | ||
Proceeds from exercise of stock options | 189 | 3,555 | 6,734 |
Treasury shares purchased | (56,408) | (33,776) | (17,314) |
Net cash (used in) provided by financing activities | (535,974) | 95,484 | 22,479 |
Effect of exchange rates on cash | (244) | 979 | (7,271) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 288,236 | 3,705 | (20,885) |
Less: decrease (increase) in cash, cash equivalents and restricted cash from discontinued operations | 26,976 | (1,287) | |
Change in cash, cash equivalents and restricted cash from continuing operations | 288,236 | 30,681 | (22,172) |
Cash, cash equivalents and restricted cash at beginning of year | 80,964 | 50,283 | 72,455 |
Cash, cash equivalents and restricted cash at end of year | $ 369,200 | $ 80,964 | $ 50,283 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Significant Accounting Policies Nature of the Company Enova International, Inc. (“Enova”), formed on September 7, 2011, is 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.” Enova and its subsidiaries (individually and collectively referred to herein as the “Company”) 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 includes installment loans and line of credit accounts. The Company provides financing to small businesses through either installment loans, a receivables purchase agreement product (“RPAs”) or a line of credit account. 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. Installment loans are loans written by the Company, 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 or by a bank partner. Installment loans includes longer-term loans that require the outstanding principal balance to be paid down in multiple installments and shorter-term single payment loans. Line of credit accounts include draws made through the Company’s line of credit product. 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 consolidated balance sheets with the exception of a liability for the estimated losses related to the guarantee on these loans. The Company operates a program with a bank to provide marketing services and loan servicing for near-prime unsecured consumer installment loans and, beginning in January 2021, line of credit accounts. Under the program, the Company receives marketing and servicing fees while the bank receives an origination fee. The bank has the ability to sell and the Company has the option, but not the requirement, to purchase the loans the bank originates and, in the case of line of credit accounts, a participation interest in those accounts. The Company does not guarantee the performance of the loans and line of credit accounts originated by the bank. As part of the OnDeck business both prior and subsequent to Enova’s acquisition, OnDeck operates a program with a separate bank to provide marketing services and loan servicing for small business installment loans and line of credit accounts. Under the OnDeck program, the Company receives marketing fees while the bank receives origination fees and certain program fees. The bank has the ability to sell and the Company has the option, but not the requirement, to purchase the installment loans that the bank originates and, in the case of line of credit accounts, extensions under those line of credit accounts. The Company does not guarantee the performance of the loans originated by the bank. Basis of Presentation The consolidated financial statements of the Company included herein have been prepared on the basis of accounting principles generally accepted in the United States (“GAAP”) and reflect the historical results of operations and cash flows of the Company during each respective period. The consolidated financial statements include goodwill and intangible assets arising from businesses previously acquired. 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. Intercompany transactions are eliminated. Certain prior period amounts have been reclassified to conform to the current year presentation. With the acquisition of OnDeck, small business loans comprise a significantly larger portion of the Company’s overall loan portfolio. Where presented on a disaggregated basis , loans and finance receivables that were previously grouped as short-term loans, line of credit accounts and installment loans and RPAs, are now grouped at the consumer and small business levels as management has deemed these groupings to be more meaningful to users of the financial statements . 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. With the acquisition of OnDeck, the Company owns a 55% controlling interest in On Deck Capital Australia PTY LTD (“OnDeck Australia”). The remaining interests are owned by an unrelated third party. We consolidate the financial position and results of operations of this entity under the voting interest model. The noncontrolling interest, which is presented as a separate component of consolidated equity, represents the minority owners' proportionate share of the equity of the entity and is adjusted for the minority owners' share of the earnings, losses, investments and distributions. On October 25, 2019, the Company’s U.K. businesses were placed into administration, which resulted in treatment of the businesses as discontinued operations for all periods presented. Throughout these consolidated financial statements, unless otherwise noted, current and prior year financial information is presented as if the U.K. businesses were excluded from continuing operations as required. For further information about the placement of the segment into administration, refer to “Discontinued Operations” below. Use of Estimates The preparation of these consolidated financial statements in conformity with 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. Foreign Currency Translations The functional currencies for the Company’s subsidiaries that serve or have served residents of the United Kingdom, Australia and Brazil are the British pound, the Australian 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. As a result of the Company’s exit from the United Kingdom in 2019, the AOCI balances related to the British pound were reclassified from AOCI to Net Income. See “Reclassification of AOCI to Net Income” below for more detail. Discontinued Operations Beginning in 2007, the Company provided services in the United Kingdom under various brands, including QuickQuid, Pounds to Pocket and On Stride. Due in part to the level of claim and legal settlement costs incurred in conducting our U.K. business and unsuccessful discussions with U.K regulators, o n October 24, 2019, the Company announced its intent to exit the U.K. market. On October 25, 2019, Grant Thornton LLP, a licensed U.K. insolvency practitioner, was appointed as administrators (“Administrators”) to take control of management of the U.K. businesses. The effect of the U.K. businesses’ entry into administration was to place their management, affairs, business and property under the direct control of the Administrators. Accordingly, the Company deconsolidated its U.K. businesses as of October 25, 2019 and is presenting them as discontinued operations for all periods presented in . The Company recorded a one-time after-tax charge of $74.5 million, including one-time cash charges of $52.2 million, as a result of placing the UK businesses into administration. During the year ended December 31, 2020 the Company recorded and impairment charge of $0.4 million ($0.3 million net of taxes) to write down a receivable on certain expenses incurred by the Company prior to administration that were deemed non-reimbursable by the Administrators. The Company entered into a service agreement with the Administrators under which the Company provides certain administrative, technical and other services in exchange for compensation by the Administrators. The agreement is scheduled to expire April 8, 2021 but three-month The following table provides the financial results of the U.K. businesses, which meet the criteria of discontinued operations and, therefore, are excluded from the Company's results of continuing operations (in thousands): Year Ended December 31, 2020 2019 (1) 2018 Revenue $ — $ 83,772 $ 141,453 Cost of Revenue — 45,507 67,595 Gross Profit — 38,265 73,858 Expenses Marketing — 13,239 29,309 Operations and technology — 43,338 34,116 General and administrative — 3,011 1,917 Depreciation and amortization — 889 990 Total Expenses — 60,477 66,332 (Loss) Income from Operations — (22,212 ) 7,526 Interest income, net — 6 16 Foreign currency transaction loss, net — (1 ) (2 ) Impairment charges upon placement into administration (393 ) (97,513 ) — (Loss) Income before Income Taxes (393 ) (119,720 ) 7,540 (Benefit from) provision for income taxes (93 ) (28,316 ) 1,014 Net (loss) income from discontinued operations $ (300 ) $ (91,404 ) $ 6,526 (1) Includes results of the U.K. businesses from January 1, 2019 to October 25, 2019 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. Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets (in thousands): December 31, 2020 2019 2018 Cash and cash equivalents $ 297,273 $ 35,895 $ 28,114 Restricted cash 71,927 45,069 22,169 Total cash, cash equivalents and restricted cash $ 369,200 $ 80,964 $ 50,283 Revenue Recognition The Company recognizes revenue based on the financing products and services it offers and on loans it acquires. “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 billing fees, purchase fees, origination fees, late fees and non-sufficient funds fees as permitted by applicable laws and pursuant to the agreement with the customer. Interest is generally recognized on an effective yield basis over the contractual term of the loan on installment loans, the estimated outstanding period of the draw on line of credit accounts, or the projected delivery term on RPAs. CSO fees are recognized over the term of the loan. Late and nonsufficient funds fees are recognized when assessed to the customer. Prior to the adoption of the fair value option effective January 1, 2020, origination fees as well as certain direct costs associated with originating loans were deferred and amortized into or against revenue on an effective yield basis over the term of the loan or the projected delivery term of the finance receivable. Subsequent to the election of the fair value option, these fees and costs are no longer eligible for deferral. As such, origination fees on installment loans, purchase fees on RPAs, and draw fees on line of credit accounts are recognized when assessed to the customer. Loans and Finance Receivables Prior to January 1, 2020, the Company carried its loans and finance receivables at amortized cost, less an allowance for estimated losses and unamortized net deferred origination costs. In determining the allowance, the Company applied a documented systematic methodology generally at a product level with charge-offs and recoveries, recorded as “Cost of revenue” in the consolidated statements of income. The allowance for single-pay installment loans classified as current was based on historical loss rates adjusted for recent default trends for current loans. For delinquent single-pay loans, the allowance was based on a six-month rolling average of loss rates by stage of collection. For other installment loans, RPAs and line of credit accounts, the Company generally used either a migration analysis or roll-rate based methodology to estimate losses inherent in the portfolio. The allowance under the migration analysis and roll-rate methodology was based on historical charge-off experience and the loss emergence period, which represented the average amount of time between the first occurrence of a loss event and the charge-off of a loan or RPA. The factors the Company considered to assess the adequacy of the allowance included past due performance, historical behavior of monthly vintages, underwriting changes, delinquency status, payment history and recency factors. Beginning January 1, 2020, the Company utilizes the fair value option on its entire loan and finance receivable portfolio. As such, loans and finance receivables are carried at fair value in the consolidated balance sheet with changes in fair value recorded in the consolidated income statement. To derive the fair value, the Company generally utilizes discounted cash flow analyses that factor in estimated losses, prepayments, utilization rates and servicing costs over the estimated duration of the underlying assets. Loss, prepayment, utilization and servicing cost assumptions are determined using historical loss data and include appropriate consideration of recent trends and anticipated future performance. Future cash flows are discounted using a rate of return that the Company believes a market participant would require. Accrued and unpaid interest and fees are included in “Loans and finance receivables” 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. Excluding OnDeck loans and finance receivables, when a customer does not make a scheduled payment as of the due date, that payment is considered delinquent, and the remainder of the receivable balance is considered current. If the customer does not make two consecutive payments, the entire account or loan is classified as delinquent and placed on a non-accrual status. For the OnDeck portfolio, a loan is considered to be delinquent when the daily or weekly payments are one day past due. Loans are placed in nonaccrual status and the accrual of interest income is stopped on loans that are delinquent and non-paying. Loans are returned to accrual status if they are brought to non-delinquent status or have performed in accordance with the contractual terms for a reasonable period of time and, in the Company’s judgment, will continue to make periodic principal and interest payments as scheduled. 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 or extend the due date on certain installment loans. In order to renew or extend a single-pay 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 single-pay 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. In response to the COVID-19 pandemic, the Company enhanced the forbearance options on its loan products, offering additional relief to impacted customers with features such as payment deferrals without the incurrence of additional finance charges or late fees. If a loan is deemed to be current and the customer makes a deferral or payment modification, the loan is still deemed to be current until the next scheduled payment is missed. The Company generally charges off loans and finance receivables between 60 and 65 days delinquent. If a loan or finance receivable is deemed uncollectible prior to this, it is charged off at that point. For the OnDeck portfolio, the Company generally charges off a loan when it is probable that that it will be unable to collect all of the remaining principal payments, which is generally after 90 days of delinquency and 30 days of non-activity. Loans and finance receivables classified as delinquent generally have an age of one to 64 days from the date any portion of the receivable became delinquent, as defined above. Recoveries on loans and finance receivables that were previously charged off are generally recognized when collected or sold. 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 3 to 5 years Furniture, fixtures and equipment 3 to 7 years Leasehold improvements (1) 3 to 10 years (1) Leasehold improvements are depreciated over the lesser of the estimated useful life, remaining lease term, or 10 years. Software Development Costs The Company applies Accounting Standards Codification (“ASC”) 350-40, Internal Use Software 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 The Company first assesses qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. In assessing the qualitative factors, management considers relevant events and circumstances including but not limited to macroeconomic conditions, industry and market environment, overall financial performance of the Company, cash flow from operating activities, market capitalization and stock price. If the Company determines that the quantitative impairment test is required, management 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. 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 20 years. The costs of start-up activities and organization costs are charged to expense as incurred. Investments in Unconsolidated Investees With the acquisition of OnDeck, as discussed in Note 2, the Company obtained a 58.5% equity interest in On Deck Capital Canada Holdings, Inc. (“OnDeck Canada”). Despite holding a majority of the equity interest, the Company does not have a controlling financial interest as it does not hold a majority of the voting interest. As such, the Company utilizes the equity method to account for its investment in OnDeck Canada in the Company’s consolidated financial statements. At their election, the minority shareholders of OnDeck Canada are entitled to require the Company to purchase their equity interests in OnDeck Canada at fair value. Conversely, the Company has the option to purchase the equity interests of OnDeck Canada from the minority shareholders at fair value. The put and call features embedded in the equity interests are not bifurcated and accounted for separately since they are clearly and closely related to the host agreement. As of December 31, 2020, the carrying value of the investment was $10.5 million, which the Company has included in “Other assets” on the consolidated balance sheets. Equity method income has been included in “Equity method investment income” in the consolidated income statements. The Company has an equity ownership position in an investment without a readily determinable value. In accordance with ASC 321, Investment – Equity Securities, Marketing Expenses Marketing expenses consist of digital costs, lead purchase costs and offline marketing costs such as television and direct mail advertising. With the adoption of the fair value option on January 1, 2020, all marketing expenses are expensed as incurred. Prior to January 1, 2020, marketing costs directly related to loan and RPA originations were deferred and amortized against revenue, whereas marketing costs not directly resulting in loan and RPA originations were expensed as incurred. 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 contact center and operations personnel costs, software maintenance expense, underwriting data from third-party vendors, bank and transaction fees 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. Stock-Based Compensation The Company accounts for its stock-based employee compensation plans in accordance with ASC 718, Compensation—Stock Compensation Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”) Reclassification of AOCI to Net Income In 2019 as part of the Company’s one-time charge related to the placement of the U.K. businesses into administration, the Company recorded a $13.2 million loss to recognize the cumulative translation adjustment balance that had been previously recorded to “Accumulated other comprehensive loss” on the consolidated balance sheets. In 2009, the Company began providing services in Australia and Canada under the brand name DollarsDirect. Due to the small size of the Australian and Canadian markets and our limited operations there, the Company decided to exit those markets in 2016 and reallocate its resources to other existing businesses. As a result, the Company ceased loan originations in those countries and wound down its loan portfolios. During 2018, the Company continued the liquidation process of the legal entities related to these operations and recorded a $2.3 million loss to “Foreign currency transaction gain (loss)” in the consolidated statements of income to recognize the cumulative translation adjustment balance that had been previously recorded to “Accumulated other comprehensive loss” on the consolidated balance sheets. The following table sets forth the components of accumulated other comprehensive loss, net of tax, for the year ended December 31, 2019 and 2018(in thousands): Foreign currency translation gain (loss) Total Balance at December 31, 2017 $ (7,086 ) $ (7,086 ) Other comprehensive loss from continuing operations, before reclassifications and tax (2,405 ) (2,405 ) Tax impact 519 519 Other comprehensive loss from discontinued operations, before reclassifications and tax (6,009 ) (6,009 ) Tax impact 982 982 Australia and Canada liquidation (1) 2,343 2,343 Tax impact (527 ) (527 ) Reclassification of certain deferred tax effects (2) (1,622 ) (1,622 ) Balance at December 31, 2018 $ (13,805 ) $ (13,805 ) Other comprehensive loss from continuing operations, before reclassifications and tax (671 ) (671 ) Tax impact 124 124 Other comprehensive gain from discontinued operations, before reclassifications and tax 1,551 1,551 Tax impact (364 ) (364 ) Placement of U.K. businesses into administration ( 3) 13,188 13,188 Tax impact (3,089 ) (3,089 ) Balance at December 31, 2019 $ (3,066 ) $ (3,066 ) (1) Amount represents the reclassification of foreign currency translation losses from AOCI to the consolidated statements of income due to the liquidation of the Company’s Australian and Canadian businesses. (2) Amount represents the reclassification of stranded tax effects from AOCI to retained earnings resulting from the change in the federal corporate income tax rate under the Tax Cuts and Jobs Act. ( 3 ) Amount represents the reclassification of foreign currency translation losses from AOCI to the consolidated statements of income due to the placement of the U.K. businesses into administration. 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 asset and liability method of accounting for income taxes in order to recognize the tax effects of temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements. The Company accounts for uncertainty in income taxes in accordance with ASC 740, Income Taxes consolidated financial statements and prescribes how such benefit should be measured. The Company records interest and penalties related to tax matters as income tax expense in the consolidated statements of income. 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 attributable to Enova International, Inc. 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, 2020 2019 2018 Year Ended December 31, 2020 2019 2018 Numerator: Net income from continuing operations $ 378,144 $ 128,016 $ 63,572 Net (loss) income from discontinued operations (300 ) (91,404 ) 6,526 Net Income $ 377,844 $ 36,612 $ 70,098 Denominator: Total weighted average basic shares 31,897 33,715 33,993 Shares applicable to stock-based compensation 405 683 1,183 Total weighted average diluted shares 32,302 34,398 35,176 Earnings per common share – basic: Continuing operations $ 11.86 $ 3.80 $ 1.87 Discontinued operations (0.01 ) (2.71 ) 0.19 Earnings per common share – basic $ 11.85 $ 1.09 $ 2.06 Earnings per common share – diluted: Continuing operations $ 11.71 $ 3.72 $ 1.81 Discontinued operations (0.01 ) (2.66 ) 0.18 Earnings per common share – diluted $ 11.70 $ 1.06 $ 1.99 For the years ended December 31, 2020, 2019 and 2018, 2,052,307, 985,130 and 587,045 shares of common stock underlying stock options, respectively, and 627,804, 12,384 and 82,929 shares of common stock underlying restricted stock units, respectively, were excluded from the calculation of diluted net earnings per share because their effect would have been antidilutive. Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Codification Improvements to Topic 326, Financial Instruments—Credit Losses Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief Financial Instruments—Credit Losses—Measured at Amortized Cost Financial Instruments—Overall Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) : Effective Dates, which sets the mandatory effective date of ASU 2016‑13 for public business entities that meet the definition of an SEC filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, for annual periods beginning after December 15, 2019, and interim periods within those annual periods. The Company adopted ASU 2016-13 and the related aforementioned ASUs under the modified-retrospective method effective January 1, 2020 and elected the fair value option to account for all loans and finance receivables. The Company believes that the fair value option better reflects the value of its portfolio and its future economic performance as well as more closely aligning with the Company’s marginal decision-making processes that rely on risk-based pricing and discounted cash flow methodologies. In accordance with the transition guidance, the Company (i) released the allowance for estimated losses on loans and finance receivables at that date; (ii) released the unamortized net deferred origination costs at that date; and (iii) measured the loans and finance receivables at fair value. As a result of |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | 2. Acquisitions On July 28, 2020, the Company and OnDeck entered into an Agreement and Plan of Merger (the “Merger Agreement”) among the Company, OnDeck and Energy Merger Sub, Inc., a wholly owned subsidiary of the Company (“Merger Sub”) , pursuant to which, subject to the satisfaction or waiver of the conditions set forth therein, Merger Sub would merge with and into OnDeck, with OnDeck surviving as an indirect wholly owned subsidiary of the Company. On October 13, 2020 (the “Acquisition Date”), The acquisition increases the scale and portfolio diversification of the Company. OnDeck offers a range of term loans and lines of credit customized for the needs of small business owners. Under the terms of the Merger Agreement, each holder of OnDeck common stock received $0.12 per share in cash and a fixed exchange ratio of 0.092 shares of the Company’s common stock for each OnDeck share they owned as of the Acquisition Date. As a result, the Company issued 5.6 million shares of common stock to OnDeck stockholders. Based on the closing share price of the Company as of October 12, 2020 of $18.74, the value of Company common stock and cash provided in exchange for OnDeck common stock was $111.5 million. In addition to the exchange of common stock, the consideration transferred also included the cancellation or replacement of certain equity awards of OnDeck employees in effect prior to the transaction valued at approximately $4.2 million. The Company is considered to be the accounting acquirer and as such, the closing date purchase consideration was allocated to the fair value of OnDeck assets and liabilities. The Company has not yet completed the process of estimating the fair value of assets acquired and liabilities assumed, including, but not limited to, loans and finance receivables, intangible assets, certain tax-related balances and certain other assets and liabilities. The purchase price allocation is subject to change as the Company finalizes the analysis of the fair value as of the Acquisition Date. The final determination of the fair value of assets acquired and liabilities assumed will be completed within the twelve-month measurement period from the Acquisition Date as required by applicable accounting guidance. Due to the significance of the acquisition, the Company may use all of this measurement period to adequately analyze and assess the fair values of assets acquired and liabilities assumed. The fair value estimate for loans and finance receivables was determined using discounted cash flow analyses that factor in estimated losses, prepayments, utilization rates and servicing costs over the estimated duration of the underlying assets. Loss, prepayment, utilization and servicing cost assumptions were determined using historical loss data and included appropriate consideration of recent trends and anticipated future performance. Future cash flows were discounted using a rate of return that a market participant would require. Going forward, the Company elected to utilize the fair value option for OnDeck’s loans and finance receivables, which is consistent with the Company’s accounting on its legacy portfolio of loans and finance receivables. As discussed in Note 1, the Company believes that the fair value option better reflects the value of its portfolio and its future economic performance as well as more closely aligning with the Company’s marginal decision-making processes that rely on risk-based pricing and discounted cash flow methodologies. Operating lease right-of-use assets and operating lease liabilities reflect remeasurements based on the estimated present value of future lease payments, adjusted for favorable or unfavorable lease terms. The above- and below-market lease adjustments take into account current market leasing rates. Intangible assets consist of developed technology and trade name of $19.1 million and $6.5 million, respectively. The fair value estimates for intangible assets were determined based on the assumptions that market participants would use in pricing an asset, based on the most advantageous market for the asset (i.e., its highest and best use). A relief from royalty method and a cost approach method, which included assumptions on projected cash flows, royalty rate, and discount rate, were utilized to determine the fair value of the developed technology intangible asset, which is being amortized on a straight-line basis over 5 years. A relief from royalty method, which included assumptions on projected cash flows, royalty rate, and discount rate, was utilized to determine the fair value of the trade name intangible asset, which is being amortized on a straight-line basis over 7 years. Deferred taxes were determined based on the excess tax basis over the book basis of the fair value adjustments attributable to the net assets acquired. The incremental deferred tax assets and liabilities were calculated based on the statutory rates where fair value adjustments were estimated. The estimated tax rate used of 23.81% does not reflect Enova’s expected effective tax rate, which will include other tax charges and benefits, and does not take into account any historical or possible future tax events that may impact the combined company following the Acquisition Date. Prior to the merger, OnDeck had a valuation allowance against the federal and state deferred tax assets. As a result of the merger, the Company released most of the U . S . valuation allowance as the Company had sufficient U . S . income in 2018 and 2019 combined, and projects income going forward. The Company still has a valuation allowance on the federal NOL and partial valuation allowance on the state NOLs for the Section 382 ownership change limiting the recoverability of the losses before expiration. The application of the 382 limitations vary state by state and are significantly impacted by the existence of future recognized built in losses that may be sustained by the Company. As such, the Company has estimated that most NOLs generated will expire unutilized and will complete further analysis in future periods relating to the state net operating losses that can be recovered as facts change. The fair value estimates for debt facilities were based on quoted market prices for each instrument, if available, or for similar instruments if not available, and adjusted for features specific to the instrument based on the assumptions that market participants would use in pricing the debt. The allocation of the purchase consideration, subject to future measurement period adjustments, is as follows (in thousands): Purchase price Fair value of Company common stock issued to OnDeck shareholders (1) $ 104,313 Cash paid for outstanding OnDeck common stock (2) 7,204 Fair value of OnDeck equity awards assumed by the Company (3) 1,647 Cash paid for OnDeck equity awards (4) 2,571 Total purchase consideration $ 115,735 Allocation Cash and cash equivalents $ 55,100 Restricted cash 68,192 Loans and finance receivables at fair value (unpaid principal balance of $623,826) 528,567 Other receivables and prepaid expenses 9,501 Deferred tax assets, net 29,738 Property and equipment 13,527 Operating lease right-of-use assets 21,026 Intangible assets 25,600 Other assets 16,497 Total assets 767,748 Accounts payable and accrued expenses 30,528 Operating lease liabilities 34,726 Long-term debt 421,576 Bargain purchase gain (5) 163,999 Accumulated other comprehensive loss (137 ) Noncontrolling interest 1,321 Total liabilities and equity 652,013 Total purchase consideration $ 115,735 (1) Represents the fair value of Company common stock issued to OnDeck stockholders pursuant to the Merger Agreement. The fair value is based on 60,035,223 shares of OnDeck common stock outstanding as of October 12, 2020, an exchange ratio of 0.092 shares of Company common stock per share of OnDeck common stock and the closing price per share of Company common stock on October 12, 2020, of $18.74, as shares were transferred to OnDeck stockholders prior to the opening of markets on October 13, 2020. (2) Represents the cash consideration paid of $0.12 per outstanding share of OnDeck common stock based on 60,035,223 shares outstanding as of October 12, 2020, as shares were transferred to OnDeck stockholders prior to the opening of markets on October 13, 2020. (3) Equity-based awards held by OnDeck employees prior to the acquisition date have been replaced with Company equity-based awards. The portion of the equity-based awards that relates to services performed by the employee prior to the acquisition date is included within consideration transferred, and includes restricted stock units and performance-based restricted stock units. (4) Represents the cash consideration for the settlement and cancellation of 2,148,193 OnDeck stock options held by employees and non-employee directors of OnDeck. ( 5 ) As a result of the acquisition date fair value of the identifiable net assets acquired exceeding the sum of the value of consideration transferred, the Company recognized a bargain purchase gain of $ million, which is included in “Gain on bargain purchase ” in the consolidated statements of income. Uncertainty around the degree and duration of impact that the COVID-19 pandemic will have on OnDeck’s operations and financial results, along with the uncertainty surrounding its future non-compliance in its debt facilities, ability to renegotiate some of its existing facilities or repay outstanding indebtedness, and maintain sufficient liquidity are what likely led to a bargain purchase scenario. During 2020, revenue from OnDeck since the Acquisition Date was $55.9 million. During 2020, the net earnings from OnDeck attributable to Enova International, Inc. since the Acquisition Date, excluding transaction-related costs of $12.4 million, were $15.4 million. The Company recognized transaction-related costs of $20.0 million in General and administrative expenses for the year ended December 31, 2020. These expenses include severance and retention costs, investment banking, legal, accounting, and related third party costs associated with the transaction, including preparation for regulatory filings and stockholder approvals. The following supplemental unaudited pro forma financial information reflects the consolidated results of operations of the Company as if the acquisition had occurred on January 1, 2019 (in thousands): Unaudited pro forma results for the Year Ended December 31, 2020 2019 Revenue $ 1,373,299 $ 1,638,626 Net income from continuing operations attributable to the Company 121,475 170,226 For purposes of conforming accounting policies, the preceding unaudited pro forma financial information assumes adoption of the fair value option for OnDeck’s loans and finance receivables as of January 1, 2020. In conjunction with this election, the Company’s loans and finance receivables are carried at fair value with changes in fair value recognized directly in earnings and origination fees and costs are no longer eligible for deferral. Other significant nonrecurring pro forma adjustments include: • • • • • The supplemental unaudited pro forma financial information is provided for illustrative purposes only and does not purport to represent what the actual consolidated results of operations would have been had the acquisition actually occurred on January 1, 2019, nor does it purport to project the future consolidated results of operations. |
Loans and Finance Receivables
Loans and Finance Receivables | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Loans and Finance Receivables | 3. Loans and Finance Receivables Revenue generated from the Company’s loans and finance receivables for the years ended December 31, 2020, 2019 and 2018 was as follows (in thousands): Year Ended December 31, 2020 2019 2018 Consumer loans and finance receivables revenue $ 962,119 $ 1,119,866 $ 939,105 Small business loans and finance receivables revenue 114,085 51,991 32,147 Total loans and finance receivables revenue 1,076,204 1,171,857 971,252 Other 7,506 2,900 1,369 Total Revenue $ 1,083,710 $ 1,174,757 $ 972,621 Loans and Finance Receivables at Fair Value The components of Company-owned loans and finance receivables at December 31, 2020 were as follows (in thousands): As of December 31, 2020 Small Consumer Business Total Principal balance - accrual $ 547,015 $ 634,476 $ 1,181,491 Principal balance - non-accrual 29,389 52,254 81,643 Total principal balance 576,404 686,730 1,263,134 Loans and finance receivables at fair value - accrual 621,257 592,654 1,213,911 Loans and finance receivables at fair value - non-accrual 3,962 23,633 27,595 Loans and finance receivables at fair value 625,219 616,287 1,241,506 Difference between principal balance and fair value $ 48,815 $ (70,443 ) $ (21,628 ) As of December 31, 2020, the aggregate fair value of loans and finance receivables that are 90 days or more past due was $14.3 million, of which $14.1 million was in non-accrual status. The aggregate unpaid principal balance for loans and finance receivables that are 90 days or more past due was $33.9 million. Changes in the fair value of Company-owned loans and finance receivables during the year ended December 31, 2020 were as follows (dollars in thousands): Year Ended December 31, 2020 Small Consumer Business Total Balance at beginning of period $ 1,015,798 $ 171,785 $ 1,187,583 Originations or acquisitions ( 1) 758,305 898,383 1,656,688 Interest and fees ( 2) 962,120 114,084 1,076,204 Repayments (1,739,136 ) (538,527 ) (2,277,663 ) Charge-offs, net ( 3) (397,204 ) (52,248 ) (449,452 ) Net change in fair value ( 3) 28,774 21,161 49,935 Effect of foreign currency translation (3,438 ) 1,649 (1,789 ) Balance at end of period $ 625,219 $ 616,287 $ 1,241,506 (1) Includes $528.6 million of small business loans and finance receivables purchased as part of the acquisition of OnDeck. (2) Included in “Revenue” in the consolidated statements of income. (3) Included in “Change in Fair Value” in the consolidated statements of income. Loans and Finance Receivables at Amortized Cost, net Prior to January 1, 2020, the Company carried its loans and finance receivables at amortized cost, including unamortized net deferred origination costs, less an allowance for estimated losses. The components of Company-owned loans and finance receivables at December 31, 2019 were as follows (in thousands): As of December 31, 2019 Small Consumer Business Total Current receivables $ 965,834 $ 175,376 $ 1,141,210 Delinquent receivables: Delinquent payment amounts ( 1) 24,104 261 24,365 Receivables on non-accrual status 68,895 5,119 74,014 Total delinquent receivables 92,999 5,380 98,379 Total loans and finance receivables, gross 1,058,833 180,756 1,239,589 Less: Allowance for losses (167,050 ) (9,889 ) (176,939 ) Loans and finance receivables, net $ 891,783 $ 170,867 $ 1,062,650 (1) Represents the delinquent portion of installment loans and line of credit account balances for customers that have only missed one payment. See Note 1 “Significant Accounting Policies-Current and Delinquent Loans and Finance Receivables” for additional information. Changes in the allowance for losses for 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, 2019 and 2018 were as follows (in thousands): Year Ended December 31, 2019 Small Consumer Business Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 140,443 $ 3,771 $ 144,214 Cost of revenue 576,581 26,968 603,549 Charge-offs (647,558 ) (26,395 ) (673,953 ) Recoveries 97,725 5,545 103,270 Effect of foreign currency translation (141 ) — (141 ) Balance at end of period $ 167,050 $ 9,889 $ 176,939 Liability for third-party lender-owned loans: Balance at beginning of period $ 2,166 $ — $ 2,166 Decrease in liability (655 ) — (655 ) Balance at end of period $ 1,511 $ — $ 1,511 Year Ended December 31, 2018 Small Consumer Business Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 101,930 $ 5,907 $ 107,837 Cost of revenue 492,928 10,569 503,497 Charge-offs (528,787 ) (17,407 ) (546,194 ) Recoveries 75,052 4,702 79,754 Effect of foreign currency translation (680 ) — (680 ) Balance at end of period $ 140,443 $ 3,771 $ 144,214 Liability for third-party lender-owned loans: Balance at beginning of period $ 2,258 $ — $ 2,258 Decrease in liability (92 ) — (92 ) Balance at end of period $ 2,166 $ — $ 2,166 In connection with its CSO programs, the Company guarantees consumer loan payment obligations to unrelated third-party lenders for consumer loans and is required to purchase any defaulted loans it has guaranteed. As of December 31, 2020, the amount of consumer loans guaranteed by the Company had an estimated fair value of $10.3 million and an outstanding principal balance of $8.8 million. As of December 31, 2020 and 2019 the amount of consumer loans, including principal, fees and interest, guaranteed by the Company were $10.2 million and $27.6 million, respectively. These loans are not included in the consolidated balance sheets as the Company does not own the loans prior to default. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment As a leading technology and analytics company, a significant amount of capital is invested in developing computer software and systems infrastructure. The Company capitalized internal software development costs of $26.7 million, $16.8 million and $10.9 million during 2020, 2019 and 2018, respectively. Major classifications of property and equipment at December 31, 2020 and 2019 were as follows (in thousands): As of December 31, 2020 Cost Accumulated Depreciation Net Computer software $ 116,554 $ (60,248 ) $ 56,306 Furniture, fixtures and equipment 25,788 (19,274 ) 6,514 Leasehold improvements 26,391 (9,794 ) 16,597 Total $ 168,733 $ (89,316 ) $ 79,417 As of December 31, 2019 Cost Accumulated Depreciation Net Computer software $ 86,509 $ (47,573 ) $ 38,936 Furniture, fixtures and equipment 24,414 (18,777 ) 5,637 Leasehold improvements 17,707 (7,740 ) 9,967 Total $ 128,630 $ (74,090 ) $ 54,540 The Company recognized depreciation expense of $18.0 million, $14.0 million and $13.1 million during 2020, 2019 and 2018, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 5. Goodwill and Other Intangible Assets Changes in the carrying value of goodwill for the years ended December 31, 2020 and 2019 were as follows (in thousands): Balance as of January 1, 2019 $ 267,013 Balance as of December 31, 2019 $ 267,013 Acquisitions 961 Balance as of December 31, 2020 $ 267,974 The Company completed its annual assessment of goodwill as of June 30, 2020 based on qualitative factors and determined that a quantitative analysis was required. Management used the income approach to complete its annual goodwill assessment and determined that the fair value of its goodwill exceeded carrying value; as such, no impairment existed at that date. The Company expects that its entire goodwill balance will be deductible for tax purposes. Acquired intangible assets that are subject to amortization as of December 31, 2020 and 2019, were as follows (in thousands): As of December 31, 2020 Cost Accumulated Amortization Net Trade names and trademarks ( 1) 9,020 (1,157 ) 7,863 Developed technology ( 1) 19,100 (955 ) 18,145 Total $ 28,120 $ (2,112 ) $ 26,008 As of December 31, 2019 Cost Accumulated Amortization Net Customer relationships $ 3,497 $ (3,417 ) $ 80 Lead provider and broker relationships 5,689 (5,369 ) 320 Trademarks 2,523 (818 ) 1,705 Non-competition agreements 800 (720 ) 80 Total $ 12,509 $ (10,324 ) $ 2,185 (1) Includes acquired intangible assets related to the Company’s acquisition of OnDeck. See Note 2 for additional information. Developed technology is amortized over five years on a straight-line basis. Customer, lead provider and broker relationships are generally amortized over three to five years based on the pattern of economic benefits provided. Trademarks and trade names are generally amortized over three to 20 years on a straight-line basis. Non-competition agreements are amortized over the applicable terms of the contract. Amortization expense for acquired intangible assets was $1.8 million, $1.1 million and $1.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. Estimated future amortization expense for the years ended December 31, is as follows (in thousands): Year Amount 2021 $ 4,859 2022 4,859 2023 4,859 2024 4,859 2025 3,904 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | 6. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses at December 31, 2020 and 2019 were as follows (in thousands): As of December 31, 2020 2019 Unrecognized tax benefits $ 39,037 $ 44,780 Trade accounts payable 26,721 23,829 Accrued payroll and fringe benefits 28,603 18,747 Accrued interest payable 18,580 17,479 Liability for consumer loans funded by third-party lender 5,080 — Deferred fees on third-party consumer loans 2,171 11,266 Accrual for consumer loan payments rejected for non-sufficient funds 2,871 4,381 Liability for losses on third-party lender owned consumer loans — 1,511 Other accrued liabilities 1,008 170 Total $ 124,071 $ 122,163 |
Marketing Expenses
Marketing Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Marketing Expenses [Abstract] | |
Marketing Expenses | 7. Marketing Expenses Marketing expenses for the years ended December 31, 2020, 2019 and 2018 were as follows (in thousands): Year Ended December 31, 2020 2019 2018 Advertising $ 37,069 $ 83,952 $ 66,442 Customer procurement expense including lead purchase costs 32,711 31,180 29,518 Total $ 69,780 $ 115,132 $ 95,960 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 8. Leases The Company has operating leases primarily for its corporate headquarters, other offices located in the U.S. and certain equipment. The Company’s leases have remaining lease terms of less than one year to eight years. Certain leases include options to extend the leases for up to five years, while others include options to terminate the leases within one year. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company determines if an arrangement is an operating lease at inception. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. All other operating leases are recorded on the consolidated balance sheet with right-of-use assets representing the right to use the underlying asset for the lease term and lease liabilities representing the obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. The right-of-use assets represent the lease liability, plus any lease payments made at or before the commencement date, less any lease incentives received. If a lease does not provide an implicit rate, the Company uses its incremental secured borrowing rate, adjusted for the maturity date, based on information available at the commencement date in determining the present value of lease payments. Lease agreements with lease and non-lease components are accounted for as a single lease component. The Company’s operating lease expense is recognized on a straight-line basis over the lease term and is recorded in general and administrative expense. Lease expenses for the years ended December 31, 2020 Year Ended December 31, 2020 2019 Operating lease cost $ 7,181 $ 6,096 Operating lease impairment charge — 370 Variable lease cost 701 363 Short-term lease cost 120 158 Sublease income (345 ) (82 ) Total lease cost $ 7,657 $ 6,905 Rent expense was $5.6 million for the year ended December 31, 2018. Future minimum lease payments as of December 31, 2020 Year Amount 2021 $ 15,056 2022 15,083 2023 14,110 2024 13,857 2025 13,775 Thereafter 18,486 Total lease payments $ 90,367 Less: interest 22,411 Present value of lease liabilities $ 67,956 The weighted average remaining lease term and discount rate as of December 31, 2020 2019 December 31, 2020 2019 Weighted average remaining lease term (years) Operating leases 6.1 7.2 Weighted average discount rate Operating leases 9.48 % 10.82 % Supplemental cash flow disclosures related to leases for the years ended December 31, Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 9,468 $ 7,366 Right-of-use assets obtained in exchange for lease obligations Operating leases 23,597 59 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 9. Long-term debt The Company’s long-term debt instruments and balances outstanding as of December 31, 2020 2019 December 31, 2020 2019 Securitization facilities $ 330,632 $ 307,885 Revolving line of credit — 72,000 8.50% senior notes due 2024 250,000 250,000 8.50% senior notes due 2025 375,000 375,000 Subtotal 955,632 1,004,885 Less: Long-term debt issuance costs (9,171 ) (13,704 ) Total long-term debt $ 946,461 $ 991,181 Weighted-average interest rates on long-term debt were 8.76% and 8.61% for the year ended December 31, 2020 2019 2020 2019 8.50% Senior Unsecured Notes Due 2025 On September 19, 2018, the Company issued and sold $375.0 million in aggregate principal amount of 8.50% senior notes due 2025 ( The 2025 Senior Notes are redeemable at the Company’s option, in whole or in part, (i) at any time prior to September 15, 2021 at 100% of the aggregate principal amount of 2025 Senior Notes redeemed plus the applicable “make whole” premium specified in the indenture that governs the Company’s 2025 Senior Notes (the “2025 Senior Notes Indenture”), plus accrued and unpaid interest, if any, to the redemption date and (ii) at any time on or after September 15, 2021 at the premium, if any, specified in the 2025 Senior Notes Indenture that will decrease over time, plus accrued and unpaid interest, if any, to the redemption date. In addition, prior to September 15, 2021, at its option, the Company may redeem up to 40% of the aggregate principal amount of the 2025 Senior Notes at a redemption price of 108.5% of the aggregate principal amount of 2025 Senior Notes redeemed, plus accrued and unpaid interest, if any, to the redemption date, with the proceeds of certain equity offerings as described in the 2025 Senior Notes Indenture. The 2025 Senior Notes and the related guarantees have not been and will not be registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities or blue sky laws and foreign securities laws. The Company used a portion of the net proceeds of the 2025 Senior Notes offering to retire $295.0 million of the remaining outstanding 9.75% senior notes due 2021 (the “2021 Senior Notes”), to pay the related accrued interest, premiums, fees and expenses associated therewith. The remaining amount was used for general corporate purposes. 8.50% Senior Unsecured Notes Due 2024 On September 1, 2017, the Company issued and sold $250.0 million in aggregate principal amount of 8.50% senior notes due 2024 (the “2024 Senior Notes”) . The 2024 Senior Notes are redeemable at the Company’s option, in whole or in part, (i) at any time prior to September 1, 2020 at 100% of the aggregate principal amount of 2024 Senior Notes redeemed plus the applicable “make whole” premium specified in the indenture that governs the Company’s 2024 Senior Notes (the “2024 Senior Notes Indenture”), plus accrued and unpaid interest, if any, to the redemption date and (ii) at any time on or after September 1, 2020 at the premium, if any, specified in the 2024 Senior Notes Indenture that will decrease over time, plus accrued and unpaid interest, if any, to the redemption date. In addition, prior to September 1, 2020, at its option, the Company may redeem up to 40% of the aggregate principal amount of the 2024 Senior Notes at a redemption price of 108.5% of the aggregate principal amount of 2024 Senior Notes redeemed, plus accrued and unpaid interest, if any, to the redemption date, with the proceeds of certain equity offerings as described in the 2024 Senior Notes Indenture. The 2024 Senior Notes and the related guarantees have not been and will not be registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities or blue sky laws and foreign securities laws. The Company used the net proceeds of the 2024 Senior Notes offering to retire a portion of its outstanding 2021 Senior Notes, to pay the related accrued interest, premiums, fees and expenses associated therewith and for general corporate purposes. Loan Securitization Facilities 2019-A Notes On October 17, 2019 (the “2019-A Closing Date”), the Company issued $138,888,000 Class A Asset Backed Notes (the “2019-A Class A Notes”), $44,445,000 Class B Asset Backed Notes (the “2019-A Class B Notes”), and $16,667,000 Class C Asset Backed Notes (the “2019-A Class C Notes” and, collectively with the 2019-A Class A Notes and the 2019-A Class B Notes, the “2019-A Notes”), through an indirect subsidiary. The 2019-A Class A Notes bear interest at 3.96%, the 2019-A Class B Notes bear interest at 6.17%, and the 2019-A Class C Notes bear interest at 7.62%. The 2019-A Notes are backed by a pool of unsecured consumer installment loans (“Securitization Receivables”) The net proceeds of the offering of the 2019-A Notes on the 2019-A Closing Date were used to acquire the Securitization Receivables from the Company, fund a reserve account and pay fees and expenses incurred in connection with the transaction. The amount of Securitization Receivables sold to the issuer on the 2019-A Closing Date was approximately $200.0 million. Additional Securitization Receivables totaling approximately $22.2 million were sold to the issuer prior to December 31, 2019. The 2019-A Notes were offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain persons outside of the United States in compliance with Regulation S under the Securities Act. The 2019-A Notes have not been registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the Securities Act and applicable state securities or blue sky laws and foreign securities laws. 2019-1 Facility On February 25, 2019 (the “2019‑1 Closing Date”), the Company and several of its subsidiaries entered into a receivables securitization (the “2019‑1 Facility”) with PCAM Credit II, LLC, as lender (the “2019‑1 Lender”). The 2019‑1 Lender is an affiliate of Park Cities Asset Management, LLC. The 2019‑1 Facility finances Securitization Receivables that have been and will be originated or acquired under the Company’s NetCredit and CashNetUSA brands by several of the Company’s subsidiaries and that meet specified eligibility criteria. Under the 2019‑1 Facility, eligible Securitization Receivables are sold to a wholly-owned subsidiary of the Company (the “2019‑1 Debtor”) and serviced by another subsidiary of the Company. The 2019‑1 Debtor has issued a delayed draw term note with an initial maximum principal balance of $30.0 million and a revolving note with an initial maximum principal balance of $20.0 million for an aggregate initial maximum principal balance of $50.0 million, which is required to be secured by eligible Securitization Receivables. The 2019‑1 Facility has an accordion feature that, with the consent of the 2019‑1 Lender, allows for the maximum principal balance of the delayed draw term note to increase to $50.0 million and the maximum principal balance of the revolving note to increase to $25.0 million, for an aggregate maximum principal balance of $75.0 million. The 2019‑1 Facility is non-recourse to the Company and matures three years after the 2019‑1 Closing Date. As of December 31, 2020 and 2019, the total outstanding amount of the 2019‑1 Facility was $30.0 million and $12.8 million, respectively. The 2019‑1 Facility is governed by a loan and security agreement, dated as of the 2019‑1 Closing Date, between the 2019‑1 Lender and the 2019‑1 Debtor. The 2019‑1 Facility bears interest at a rate per annum equal to LIBOR (subject to a floor) plus an applicable margin, which applicable margin is initially 9.75%. In addition, the 2019‑1 Debtor is required to pay certain customary upfront closing fees to the 2019‑1 Lender. Interest payments on the 2019‑1 Facility will be made monthly. Subject to certain exceptions, the 2019‑1 Debtor is not permitted to prepay the delayed draw term note prior to two years after the 2019‑1 Closing Date. Following such date, the 2019‑1 Debtor is permitted to voluntarily prepay the 2019‑1 Facility without penalty. The revolving note may be paid in whole or in part at any time after the delayed draw term note has been fully drawn. All amounts due under the 2019‑1 Facility are secured by all of the 2019‑1 Debtor’s assets, which include the eligible Securitization Receivables transferred to the 2019‑1 Debtor, related rights under the eligible Securitization Receivables, a bank account and certain other related collateral. The Company has issued a limited indemnity to the 2019‑1 Lender for certain “bad acts,” and the Company has agreed for the benefit of the 2019‑1 Lender to meet certain ongoing financial performance covenants. The 2019‑1 Facility documents contain customary provisions for securitizations, including representations and warranties as to the eligibility of the eligible Securitization 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 2019‑1 Facility in circumstances including, but not limited to, failure to make payments when due, certain insolvency events, breaches of representations, warranties or covenants, failure to maintain the security interest in the eligible Securitization Receivables, defaults under other material indebtedness of the 2019‑1 Debtor and a default by the Company under its financial performance covenants. On February 25, 2021, the 2019-1 Debtor repaid in full all outstanding indebtedness and terminated all commitments and obligations under the 2019-1 Facility. The 2019-1 Lender’s security interest in the 2019-1 Debtor’s assets was automatically released and terminated in connection with the repayment of the 2019-1 Facility. The Company did not incur any early termination penalties as a result of the repayment of the indebtedness under or termination of the 2019-1 Facility. 2018-A Notes On October 31, 2018 (the “2018-A Closing Date”), the Company issued $95,000,000 Class A Asset Backed Notes (the “2018-A Class A Notes”) and $30,400,000 Class B Asset Backed Notes (the “2018-A Class B Notes” and, collectively with the Class A Notes, the “2018-A Notes”), through an indirect subsidiary. The Class A Notes bear interest at 4.20% and the Class B Notes bear interest at 7.37%. The 2018-A Notes are backed by a pool of Securitization Receivables and represent obligations of the issuer only. The 2018-A Notes are not guaranteed by the Company. Under the 2018-A Notes, Securitization Receivables are sold to a wholly-owned subsidiary of the Company and serviced by another subsidiary of the Company. As of December 31, 2020 2019 The net proceeds of the offering of the 2018-A Notes on the 2018-A Closing Date were used to acquire the Securitization Receivables from the Company, fund a reserve account and pay fees and expenses incurred in connection with the transaction. The 2018-A Notes were offered only to “qualified institutional buyers” pursuant to Rule 144A under the Securities Act and to certain persons outside of the United States in compliance with Regulation S under the Securities Act. The 2018-A Notes have not been registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the Securities Act and applicable state securities or blue sky laws and foreign securities laws. 2018-2 Facility On October 23, 2018, the Company and several of its subsidiaries entered into a receivables funding agreement (the “2018-2 Facility”) with Credit Suisse AG, New York Branch, as agent (the “2018-2 Agent”). The 2018-2 Facility collateralizes Securitization Receivables that have been and will be originated or acquired under the Company’s NetCredit brand by several of its subsidiaries and that meet specified eligibility criteria in exchange for a revolving note. Under the 2018-2 Facility, Securitization Receivables are sold to a wholly-owned subsidiary of the Company (the “2018-2 Debtor”) and serviced by another subsidiary of the Company. The 2018-2 Debtor has issued a revolving note with an initial maximum principal balance of $150.0 million, which is required to be secured by 1.25 times the drawn amount in eligible Securitization Receivables. The 2018-2 Facility is non-recourse to the Company and matures on October 23, 2022. As of December 31, 2020 2019 The 2018-2 Facility is governed by a loan and security agreement, dated as of October 23, 2018, between the 2018-2 Agent, the 2018-2 Debtor and certain other lenders and agent parties thereto. The 2018-2 Facility bears interest at a rate per annum equal to one-month LIBOR (subject to a floor) plus an applicable margin, which rate per annum is 3.75%. In addition, the 2018-2 Debtor paid certain customary upfront closing fees to the 2018-2 Agent. Interest payments on the 2018-2 Facility will be made monthly. The 2018-2 Debtor shall be permitted to prepay the 2018-2 Facility, subject to certain fees and conditions. Any remaining amounts outstanding will be payable no later than October 23, 2022, the final maturity date. All amounts due under the 2018-2 Facility are secured by all of the 2018-2 Debtor’s assets, which include the Securitization Receivables transferred to the 2018-2 Debtor, related rights under the Securitization Receivables, a bank account and certain other related collateral. The 2018-2 Facility documents contain customary provisions for securitizations, including: representations and warranties as to the eligibility of the Securitization 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 that provide for the acceleration of the 2018-2 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 Securitization Receivables and defaults under other material indebtedness of the 2018-2 Debtor. 2018‑1 Facility On July 23, 2018, the Company and several of its subsidiaries entered into a receivables funding agreement (the “2018‑1 Facility”) with Pacific Western Bank, as lender (the “2018‑1 Lender”). The 2018‑1 Facility collateralizes Securitization Receivables The 2018‑1 Debtor has issued a revolving note with an initial maximum principal balance of $150.0 million, which is required to be secured by 1.25 times the drawn amount in eligible Securitization Receivables. The 2018‑1 Facility is non-recourse to the Company and matures on July 22, 2023. As of December 31, 2020, the outstanding amount of the 2018-1 Facility was $39.9 million. As of December 31, The 2018‑1 Facility is governed by a loan and security agreement, dated as of July 23, 2018, between the 2018‑1 Lender and the 2018‑1 Debtor. The 2018-1 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 4.00%. In addition, the 2018‑1 Debtor paid certain customary upfront closing fees to the 2018‑1 Lender. Interest payments on the 2018‑1 Facility will be made monthly. The 2018‑1 Debtor shall be permitted to prepay the 2018‑1 Facility, subject to certain fees and conditions. In the event of prepayment for the purposes of securitizations, no fees shall apply. Any remaining amounts outstanding will be payable no later than July 22, 2023, the final maturity date. All amounts due under the 2018‑1 Facility are secured by all of the 2018‑1 Debtor’s assets, which include the Securitization Receivables transferred to the 2018‑1 Debtor, related rights under the Securitization Receivables, a bank account and certain other related collateral. The 2018‑1 Facility documents contain customary provisions for securitizations, including: representations and warranties as to the eligibility of the Securitization 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 2018‑1 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 2018‑1 Debtor. ODAST II Agreement On April 17, 2018, OnDeck Asset Securitization Trust II LLC (“ODAST II”), a wholly-owned indirect subsidiary assumed in the OnDeck acquisition, issued $225.0 million in initial principal amount of fixed-rate, asset-backed offered notes in a securitization transaction (the “ODAST 2018-1 Notes”). The ODAST 2018-1 Notes were issued in four classes: Class A in the amount of $177.5 million, Class B in the amount of $15.5 million, Class C in the amount of $20.0 million and Class D in the amount of $12.0 million. The ODAST 2018-1 Notes had fixed interest rates of 3.50%, 4.02%, 4.52% and 5.85% for the Class A, Class B, Class C and Class D, respectively. On November 15, 2019, ODAST II issued $125 million in initial principal amount of fixed-rate asset backed offered notes in a securitization transaction (the “ODAST 2019-1 Notes”). The notes were issued in five classes with a weighted average fixed interest rate of 3.04 %. Beginning in May 2020, all remaining collections held by ODAST II, after payment of accrued interest and certain expenses, were applied to repay the principal balance of each of the Series 2018-1 Notes and the Series 2019-1 Notes on a pro rata basis. In November 2020, the Company optionally prepaid in full the ODAST 2018-1 Notes. In December 2020, the Company also repaid the ODAST 2019-1 Notes in full and terminated the securitization transaction. ODART Facility Assumed in the OnDeck acquisition, the loan securitization facility (“ODART Facility”) for OnDeck Account Receivables Trust 2013-1 (“ODART”), a wholly-owned indirect subsidiary of the Company, collateralized certain eligible installment loans and line of credit accounts originated or purchased by OnDeck. The borrowing rate on the ODART Facility is 1-month LIBOR plus 1.75%. On the Acquisition Date an amortization event occurred and the revolving period for the ODART Facility was terminated. The ODART Facility was scheduled to mature on May 31, 2021. As of December 31, 2020, the carrying amount of the ODART Facility was $29.5 million, including an unamortized discount of $0.2 million. On February 19, 2021, the ODART Facility was repaid in full and terminated. RAOD Facility Assumed in the OnDeck acquisition, the loan securitization facility (“RAOD Facility”) for Receivable Assets of OnDeck, LLC (“RAOD”), a wholly-owned indirect subsidiary of the Company, collateralizes certain eligible installment loans originated or purchased by OnDeck or certain other subsidiaries. The RAOD Facility was amended on December 24, 2020, which, amongst other changes, extended the revolving period from December 2020 December 2022 September 2021 December 2023 As of December 31, 2020, the carrying amount of the RAOD Facility was $22.7 million, including an unamortized discount of $0.2 million. ODAF Facility Assumed in the OnDeck acquisition, the loan securitization facility (“ODAF Facility”) for OnDeck Asset Funding II LLC (“ODAF”), a wholly-owned indirect subsidiary of the Company, collateralizes certain eligible installment loans and line of credit accounts originated or purchased by OnDeck. The credit agreement for the ODAF facility has a commitment amount of $175.0 million, an advance rate of 70% and a borrowing rate of 1-month LIBOR plus 3.0%. The revolving period expires on August 6, 2021 and the final maturity date is August 8, 2022. As of December 31, 2020, the carrying amount of the ODAF Facility was $52.5 million, including an unamortized discount of $0.3 million. PORT Facility Assumed in the OnDeck acquisition, the loan securitization facility (the “PORT Facility”) for Prime OnDeck Receivables Trust II, LLC (“PORT”), a wholly-owned indirect subsidiary of the Company, collateralizes certain eligible installment loans and line of credit accounts originated or purchased by OnDeck. The PORT Facility has an uncommitted borrowing capacity of $200.0 million. As of December 31, 2020, the PORT Facility had no outstanding balance. LAOD Facility Assumed in the OnDeck acquisition, the loan securitization facility (the “LAOD Facility”) for Loan Assets of OnDeck, LLC (“LAOD”), a wholly-owned indirect subsidiary of the Company, collateralized certain eligible installment loans and lines of credit originated or purchased by OnDeck. The credit agreement for the LAOD Facility had a commitment amount of $150.0 million and a borrowing rate of 1-month LIBOR plus 1.75%. In November 2020, the Company voluntarily prepaid in full and terminated the LAOD Facility. ODFT Facility Assumed in the OnDeck acquisition, the OnDeck Funding Security Trust No. 2 facility (“ODFT Facility”) is a revolving facility, denominated in Australian dollars that collateralizes installment loans originated by OnDeck in Australia. The ODFT Facility was amended on December 18, 2020 to, among other things, add a mezzanine lender with a commitment amount of AU$18.0 million, lower the existing Class A commitment from AU$150.0 million to AU$60.0 million, provide for an effective overall borrowing base advance rate of 90% and a Class B borrowing rate of 1-month BBSW plus 7.5%. The Class A borrowing rate remained the same at 1-month BBSW plus 3.75%. The period during which new borrowings may be made under this facility expires in June 2021 December 2021 Revolving Credit Facility On June 30, 2017, the Company and certain of its operating subsidiaries entered into a secured revolving credit agreement with a syndicate of banks including TBK Bank, SSB (“TBK”), as administrative agent and collateral agent, Jefferies Finance LLC and TBK as joint lead arrangers and joint lead bookrunners, and Veritex Community Bank (as successor in interest to Green Bank, N.A.), as lender (as amended the “Credit Agreement”) The Credit Agreement is secured by domestic receivables. The borrowing limit in the Credit Agreement, as amended, is $125.0 million and its maturity date is . outstanding borrowings under the Credit Agreement The Credit Agreement provides for a revolving credit line with interest on borrowings under the facility at prime rate plus 1.00%. In addition, the Credit Agreement provides for payment of a commitment fee calculated with respect to the unused portion of the line, and ranges from 0.30% per annum to 0.50% per annum depending on usage. A portion of the revolving credit facility, up to a maximum of $20.0 million, is available for the issuance of letters of credit. The Company had outstanding letters of credit under the Credit Agreement of $1.0 million and $1.2 million as of December 31, 2020 and 2019, respectively. The Credit Agreement provides for certain prepayment penalties if it is terminated on or before its first and second anniversary date, subject to certain exceptions. The Credit Agreement contains certain limitations on the incurrence of additional indebtedness, investments, the attachment of liens to the Company’s property, the amount of dividends and other distributions, fundamental changes to the Company or its business and certain other activities of the Company. The Credit Agreement contains standard financial covenants for a facility of this type based on a leverage ratio and a fixed charge coverage ratio. The Credit Agreement also provides for customary affirmative covenants, including financial reporting requirements, and certain events of default, including payment defaults, covenant defaults and other customary defaults. As of December 31, 2020, required principal payments under the terms of the long-term debt for each of the five years after December 31, 2020 are as follows (in thousands): Year Amount 2021 $ — 2022 — 2023 — 2024 — 2025 250,000 Thereafter 375,000 Securitization 331,643 (1 ) Total $ 956,643 (1) The 2019-A Notes mature on June 22, 2026, the 2019-1 Facility matures on February 25, 2022, the 2018-A Notes mature on May 20, 2026, the 2018-2 Facility matures on October 23, 2022, the 2018-1 Facility matures on July 22, 2023, the RAOD Facility matures on December 24, 2023, the ODART Facility matures on May 31, 2021, the ODAF Facility matures on August 8, 2022 and the ODFT Facility matures on December 31, 2021. The ODART Facility was repaid in full and terminated on February 19, 2021, and the 2019-1 Facility was repaid in full and terminated on February 25, 2021. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The components of the Company’s deferred tax assets and liabilities as of December 31, 2020 and 2019 were as follows (in thousands): As of December 31, 2020 2019 Deferred tax assets: Loans and finance receivables, net $ 10,775 $ 5,627 Compensation and benefits 7,914 4,699 Translation adjustments 2,132 839 Accrued rent and deferred finish out allowance 15,661 8,411 Foreign net operating loss carryforward 9,588 5,127 U.S. net operating loss carryforward 4,689 — Other 3,212 2,335 Total deferred tax assets 53,971 27,038 Deferred tax liabilities: Amortizable intangible assets 62,286 51,389 Property and equipment 15,963 11,775 Operating lease right-of-use asset 9,057 4,613 Other 2,625 2,567 Total deferred tax liabilities 89,931 70,344 Net deferred tax liabilities before valuation allowance (35,960 ) (43,306 ) Valuation allowance (12,169 ) (5,377 ) Net deferred tax liabilities $ (48,129 ) $ (48,683 ) The components of the provision for income taxes and the income to which it relates for the years ended December 31, 2020, 2019 and 2018 are shown below (in thousands): Year Ended December 31, 2020 2019 2018 Income before income taxes: Domestic $ 435,420 $ 170,069 $ 68,873 International — — — Income before income taxes $ 435,420 $ 170,069 $ 68,873 Current provision (benefit): Federal $ 39,066 $ 24,995 $ (16,464 ) International — — 42 State and local 6,399 6,151 (1,284 ) Total current provision (benefit) $ 45,465 $ 31,146 $ (17,706 ) Deferred provision: Federal $ 8,467 $ 7,626 $ 22,735 International — — — State and local 3,259 3,281 272 Total deferred provision $ 11,726 $ 10,907 $ 23,007 Total provision for income taxes $ 57,191 $ 42,053 $ 5,301 The effective tax rate on income differs from the federal statutory rate of 21% for the years ended December 31, 2020, 2019 and 2018, for the following reasons (dollars in thousands): Year Ended December 31, 2020 2019 2018 Tax provision computed at the federal statutory income tax rate $ 91,438 $ 35,714 $ 14,463 State and local income taxes, net of federal tax benefits 8,422 5,254 2,660 Share-based compensation (91 ) (2,015 ) (1,790 ) Bargain purchase gain (34,440 ) — — Deferred tax adjustment from TCJA — — (10,284 ) 162(m) limit on deductibility of executive compensation 1,834 742 1,547 State rate adjustment 1,245 2,210 — Release of uncertain tax position (11,604 ) — — Other 387 148 (1,295 ) Total provision $ 57,191 $ 42,053 $ 5,301 Effective tax rate 13.1 % 24.7 % 7.7 % As required under ASC 740, the Company revalued the existing deferred tax balances as of December 31, 2017 due to a change in the Federal income tax rate in the period as result of the enactment of the Tax Cuts and Jobs Act (“TCJA”). In accordance with SEC Staff Accounting Bulletin No. 118 (“SAB 118”), the Company obtained further necessary information and incorporated published guidance provided after year end. These items were utilized to prepare the Company’s federal and state income tax filings for the 2017 tax year. Included in the Company’s income tax expense for the year ended December 31, 2018 are certain adjustments related to the finalization of computations related to the TCJA. As of December 22, 2018, the Company considered the one-year period provided for under SAB 118 to be closed. The Company has gross federal net operating loss carryforwards of $12.5 million as of December 31, 2020, mainly attributable to the Company’s 2020 acquisitions. The Company has recorded a valuation allowance related to the federal net operating loss carryforwards as they are not more likely than not to be utilized as the losses will be limited to the Section 382 ownership changes. The Company has established a tax-effected valuation allowance of $0.7 million as of December 31, 2020, against the net operating losses that will expire prior to their utilization. Following the acquisition of OnDeck, the Company is subject to a Section 382 limitation associated with the built-in losses and other attributes of the acquired OnDeck assets. The reversal of certain deferred tax assets acquired by Enova associated with OnDeck assets may be determined to be recognized built-in losses as defined in Section 382. As such, the losses may be limited to the annual Section 382 limitation of approximately $1.0 million per year. The Company has gross state net operating loss carryforwards of $35.2 million, $16.3 million and $13.2 million as of December 31, 2020, 2019 and 2018, respectively, that, if unused, will expire between calendar years 2023 and 2038. The Company has recorded a tax-effected valuation allowance of $1.0 million as of December 31, 2020, related to the state net operating loss carryforwards as they are not more likely than not to be utilized as the losses will be limited to the Section 382 ownership change. The Company has gross foreign net operating loss carryforwards from Brazilian operations of $19.5 million, $24.4 million and $20.6 million as of December 31, 2020, 2019 and 2018, respectively. 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 Brazilian net operating loss carryforwards, as they are not more likely than not to be utilized. With the acquisition of OnDeck, the Company owns a 55% controlling interest in OnDeck Australia. The Company has gross foreign net operating loss carryforwards from Australian operations of $18.3 million as of December 31, 2020. These net operating loss carryforwards have an unlimited carryforward period. The Company has recorded a full valuation allowance related to the Australian net operating loss carryforwards, as well as other Australian deferred tax assets, as they are not more likely than not to be utilized. The following table summarizes the valuation allowance activity for the years ended December 31, 2020, 2019 and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Balance at beginning of period $ 5,377 $ 5,130 $ 2,650 Additions 6,792 247 2,480 Balance at end of period $ 12,169 $ 5,377 $ 5,130 A reconciliation of the activity related to unrecognized tax benefits follows for the years ended December 31, 2020, 2019 and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Balance at beginning of period $ 53,613 $ 40,340 $ 727 Additions based on tax positions related to the current year — 15,085 8,248 Reductions based on tax positions related to the current year (4,114 ) — — Additions for tax positions of prior years 2,033 — 31,365 Reductions for tax positions of prior years (7,351 ) (1,812 ) — Additions for opening tax positions of acquired entity 6,460 — — Reductions due to settlements with the taxing authorities (11,604 ) — — Balance at end of period $ 39,037 $ 53,613 $ 40,340 Included in the balances of unrecognized tax benefits at December 31, 2020, 2019 and 2018 are potential benefits of $10.6 million, $13.9 million and $13.3 million, respectively, that, if recognized, would favorably affect the effective tax rate in the period of recognition. The balance of unrecognized tax benefits for temporary items as of December 31, 2020, 2019 and 2018 was $28.4 million, $39.7 million and $27.1 million, respectively. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. The liability for unrecognized tax benefits as of December 31, 2020 and 2019 includes $1.7 million and $2.0 million, respectively, for accrued interest and penalties related to unrecognized tax benefits. The liability for unrecognized tax benefits included no amounts for accrued interest and penalties related to unrecognized tax benefits as of December 31, 2018. The Company believes it is reasonably possible that, within the next twelve months, unrecognized domestic tax benefits will change by a significant amount. The Company’s principal uncertainties are related to the timing of recognition of income and losses related to its loan and finance receivable portfolio. The Company successfully closed a Joint Committee on Taxation review of certain tax returns that were filed during 2018 in conjunction with the refunds claimed on those returns. Depending upon the outcome any future agreements or settlements with the relevant taxing authorities, the amount of the uncertainty, including amounts that would be recognized as a component of the effective tax rate, could change significantly. While the total amount of uncertainty to be resolved is not clear, it is reasonably possible that the uncertainties pertaining to the tax positions will be resolved in the next twelve months. The Company’s U.S. tax returns are subject to examination by federal and state taxing authorities. The statute of limitations related to the Company’s consolidated Federal income tax returns is closed for all tax years up to and including 2016. However, the 2014 tax year is still open to the extent of the net operating loss that was carried back from the 2019 tax return. The years open to examination by state, local and foreign government authorities vary by jurisdiction, but the statute of limitation is generally three years from the date the tax return is filed. For jurisdictions that have generated net operating losses, carryovers may be subject to the statute of limitations applicable for the year those carryovers are utilized. In these cases, the period for which the losses may be adjusted will extend to conform with the statute of limitations for the year in which the losses are utilized. In most circumstances, this is expected to increase the length of time that the applicable taxing authority may examine the carryovers by one year or longer, in limited cases. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Guarantees of Consumer Loans In connection with its CSO programs, the Company guarantees consumer loan payment obligations to unrelated third-party lenders for consumer loans and is required to purchase any defaulted loans it has guaranteed. As of December 31, 2020, the amount of consumer loans guaranteed by the Company had an estimated fair value of $10.3 million and an outstanding principal balance of $8.8 million. As of December 31, 2020 and 2019, the amount of consumer loans, including principal, fees and interest, guaranteed by the Company were $10.2 million and $27.6 million, respectively. These loans are not included in the consolidated balance sheets as the Company does not own the loans prior to default. Litigation On April 23, 2018, the Commonwealth of Virginia, through Attorney General Mark R. Herring, filed a lawsuit in the Circuit Court for the County of Fairfax, Virginia against NC Financial Solutions of Utah, LLC (“NC Utah”), a subsidiary of the Company. The lawsuit alleges violations of the Virginia Consumer Protection Act (“VCPA”) relating to NC Utah’s communications with customers, collections of certain payments, its loan agreements, and the rates it charged to Virginia borrowers. The plaintiff is seeking to enjoin NC Utah from continuing its current lending practices in Virginia, restitution, civil penalties, and costs and expenses in connection with the same. Neither the likelihood of an unfavorable 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 carefully considered applicable Virginia law before NC Utah began lending in Virginia and, as a result, believes that the Plaintiff’s claims in the complaint are without merit and intends to vigorously defend this lawsuit. The Company is also involved in certain routine legal proceedings, claims and litigation matters encountered in the ordinary course of its business. Certain of these matters may be covered to an extent by insurance or by indemnification agreements with third parties. The Company has recorded accruals in its consolidated financial statements for those matters in which it is probable that it has incurred a loss and the amount of the loss, or range of loss, can be reasonably estimated. 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, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 12. Employee Benefit Plans The Company sponsors the Enova International, Inc. 401(k) Savings Plan (the “Enova 401(k) Plan”), which is open to all U.S. employees of the Company and its subsidiaries, excluding OnDeck. For OnDeck employees, the Company sponsors the OnDeck 401(k) Plan which covers substantially all employees of OnDeck. For the Enova 401(k) Plan, new employees are automatically enrolled in this plan unless they elect not to participate. T T The Company also sponsors 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 terms 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 $0.6 million for SERP contributions for the year ended December 31, 2020 and $0.5 million each of the years ended December 31, 2019 and 2018. The NQSP and the SERP are non-qualified, unfunded, deferred compensation plans for which the Company holds securities in rabbi trusts to pay benefits. 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 (in thousands): As of December 31, 2020 2019 Prepaid expenses and other assets $ 3,972 $ 2,867 Accounts payable and accrued expenses $ 4,543 $ 3,397 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 13. Stock-Based Compensation Under the Enova International, Inc. 2014 Second Amended and Restated Long-Term Incentive Plan (the “Enova LTIP”), the Company is authorized to issue 12,500,000 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 have been the only stock-based awards granted under the Plan. As of December 31, 2020, there were 3,769,244 shares available for future grants under the Enova LTIP. In connection with the acquisition of OnDeck on October 13, 2020, the Board of Directors authorized the issuance of 419,291 shares of Common Stock with respect to certain RSUs (including certain performance-based RSUs) outstanding under the On Deck Capital, Inc. 2014 Equity Incentive Plan that were assumed by Enova. Also, the Board of Directors also authorized the issuance of 67,757 shares of Common Stock under certain inducement RSUs being granted in connection with the acquisition of OnDeck. During the year ended December 31, 2020, the Company received 135,916 shares of its common stock valued at approximately $2.7 million as partial payment of taxes required to be withheld upon issuance of shares under RSUs. Restricted Stock Units During the years ended December 31, 2020 2019 In accordance with ASC 718, the grant date fair value of RSUs is 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 RSU activity during 2020 2018 Year Ended December 31, Year Ended December 31, Year Ended December 31, 2020 2019 2018 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 1,117,766 $ 21.09 1,242,422 $ 16.34 1,425,883 $ 12.00 Units granted 1,294,509 18.89 616,010 24.14 639,109 21.74 Shares issued (588,924 ) 19.61 (545,592 ) 14.23 (604,116 ) 11.90 Units forfeited (73,258 ) 20.56 (195,074 ) 19.61 (218,454 ) 16.12 Outstanding at end of year 1,750,093 $ 19.98 1,117,766 $ 21.09 1,242,422 $ 16.34 Compensation expense related to these RSUs totaling $13.7 million ($10.3 million net of related taxes), $8.4 million ($6.4 million net of related taxes) and $8.8 million ($6.7 million net of related taxes) was recognized for the years ended December 31, 2020 2019 2018 2020 2020 Stock Options During the years ended December 31, 2020 2019 2018 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 seventh anniversary of their date of grant. Exercise prices of stock options granted in 2019 and 2020 are equal to the average of the closing stock price for the last 45 trading days preceding the grant date. Exercise prices of stock options granted prior to 2019 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 grant date fair value of the stock options and is amortized to expense over the vesting periods. For the year ended December 31, 2020, 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 1.3%, expected term (life) of options of 4.5 years, expected volatility of 52.4% and no expected dividends. Determining the fair value of options 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 and revises 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 2020 2018 Year Ended December 31, Year Ended December 31, Year Ended December 31, 2020 2019 2018 Units Weighted Average Exercise Price Units Weighted Average Exercise Price Units Weighted Average Exercise Price Outstanding at beginning of year 2,084,297 $ 19.35 2,129,837 $ 17.32 2,054,092 $ 16.92 Options granted 576,223 22.81 513,583 21.34 481,003 21.54 Options exercised (16,625 ) 11.40 (362,798 ) 9.80 (319,764 ) 21.07 Options forfeited (21,939 ) 16.79 (196,325 ) 20.10 (85,494 ) 17.42 Outstanding at end of year 2,621,956 $ 20.18 2,084,297 $ 19.35 2,129,837 $ 17.32 Exercisable options at end of year 1,641,133 18.95 1,279,794 18.73 1,246,301 17.27 The weighted average fair value of options granted in 2020 2020 2018 2020 2020 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 14. Related Party Transactions The Company has an agreement for direct mail production and fulfillment services with a marketing services company where David Fisher, the Company’s Chief Executive Officer and Chairman of the Board, also served as a member of the marketing services company’s board of directors until October 1, 2020, when the marketing services company was acquired by a non-affiliated third party. As a result, David Fisher is no longer a member of the board of directors of and has no further involvement with the marketing services company. With the acquisition of OnDeck, as discussed in Notes 1 and 2 in the Notes to Consolidated Financial Statements The Company believes that the transactions described above have been provided on terms no less favorable to the Company than could have been negotiated with non-affiliated third parties. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2020 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | 15. 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 its various securitization facilities. The Company transfers certain loan receivables to wholly owned, bankruptcy-remote special purpose subsidiaries (“VIEs”), which issue notes backed by the underlying loan receivables and are serviced by another wholly-owned subsidiary of the Company. The cash flows from the loans held by the VIEs are used to repay obligations under the notes. 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 returns related to servicing fee revenue from the VIEs and 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. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | 16. Supplemental Disclosures of Cash Flow Information The following table sets forth certain cash and non-cash activities for the years ended December 31, 2020, 2019 and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Cash paid during the year for: Interest $ 74,901 $ 70,250 $ 68,350 Income taxes paid (recovered) 27,479 (39,392 ) 9,581 Non-cash investing and financing activities: Loans and finance receivables renewed $ 95,080 $ 146,039 $ 98,043 Fair value of acquired assets 772,376 — — Liabilities assumed in acquisitions 487,458 — — Issuance of common stock related to the acquisition of OnDeck (105,960 ) — — |
Operating Segment Information
Operating Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Operating Segment Information | 17. Operating Segment Information The Company provides online financial services to non-prime credit consumers and small businesses in the United States, Australia 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 The following table presents the Company’s revenue by geographic region for the years ended December 31, 2020, 2019 and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Revenue United States $ 1,071,694 $ 1,153,308 $ 946,515 Other international countries 12,016 21,449 26,106 Total revenue $ 1,083,710 $ 1,174,757 $ 972,621 The Company’s long-lived assets, which consist of the Company’s property and equipment, were $79.4 million and $54.5 million at December 31, 2020 and 2019, 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, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 18. Fair Value Measurements Recurring Fair Value Measurements The Company uses a hierarchical framework that prioritizes and ranks the market observability of inputs used in its fair value measurements. Market price observability is affected by a number of factors, including the type of asset or liability and the characteristics specific to the asset or liability being measured. Assets and liabilities with readily available, active, quoted market prices or for which fair value can be measured from actively quoted prices generally are deemed to have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. The Company classifies the inputs used to measure fair value into one of three levels as follows: • Level 1: Quoted prices in active markets for identical assets or liabilities. • Level 2: Inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable. • Level 3: Unobservable inputs for the asset or liability measured. Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company’s market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability may fall into different levels of the fair value hierarchy. In those cases, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level of input that is significant to the entire measurement. Such determination requires significant management judgment. During the years ended December 31, 2020 and 2019, there were no transfers of assets or liabilities between Level 1, 2 or 3. It is the Company’s policy to value any transfers between levels of the fair value hierarchy based on end of period values. Effective January 1, 2020, the Company elected the fair value option to account for all loans and finance receivables. The Company’s financial assets that are measured at fair value on a recurring basis as of December 31, 2020 and 2019 are as follows (in thousands): December 31, Fair Value Measurements Using 2020 Level 1 Level 2 Level 3 Financial assets Consumer loans and finance receivables ( 1)(2) $ 625,219 $ — $ — $ 625,219 Small business loans and finance receivables ( 1)(2) 616,287 — — 616,287 Non-qualified savings plan assets ( 3) 3,972 3,972 — — Investment in trading security ( 4) 19,273 19,273 — — Total $ 1,264,751 $ 23,245 $ — $ 1,241,506 December 31, Fair Value Measurements Using 2019 Level 1 Level 2 Level 3 Financial assets Non-qualified savings plan assets ( 3) $ 2,867 $ 2,867 $ — $ — Investment in trading security ( 4) 11,449 11,449 — — Total $ 14,316 $ 14,316 $ — $ — (1) Consumer and small business loans and finance receivables are included in “Loans and finance receivables at fair value” in the consolidated balance sheets subsequent to December 31, 2019. (2) Consumer loans and finance receivables and small business loans and finance receivables include $277.6 million and $251.3 million in assets of consolidated VIEs, respectively, as of December 31, 2020. (3) The non-qualified savings plan assets are included in “Other receivables and prepaid expenses” in the Company’s consolidated balance sheets and have an offsetting liability of equal amount, which is included in “Accounts payable and accrued expenses” in the Company’s consolidated balance sheets. (4) Investment in trading security is included in “Other assets” in the Company’s consolidated balance sheets. The Company primarily estimates the fair value of its loan and finance receivables portfolio using discounted cash flow models that have been internally developed. The models use inputs, such as estimated losses, prepayments, utilization rates, servicing costs and discount rates, that are unobservable but reflect the Company’s best estimates of the assumptions a market participant would use to calculate fair value. Certain unobservable inputs may, in isolation, have either a directionally consistent or opposite impact on the fair value of the financial instrument for a given change in that input. An increase to the net loss rate, prepayment rate, servicing cost, or discount rate would decrease the fair value of the Company’s loans and finance receivables. When multiple inputs are used within the valuation techniques for loans, a change in one input in a certain direction may be offset by an opposite change from another input. The fair value of the nonqualified savings plan assets was deemed Level 1 as they are publicly traded equity securities for which market prices of identical assets are readily observable. The fair value of the investment in trading security was deemed Level 1 as it is a publicly traded fund with active market pricing that is readily available. The Company had no liabilities measured at fair value on a recurring basis as of December 31, 2020 or 2019. 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, 2020 and 2019, 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, 2020 and 2019 that are not measured at fair value in the consolidated balance sheets are as follows (in thousands): December 31, Fair Value Measurements Using 2020 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 297,273 $ 297,273 $ — $ — Restricted cash ( 1) 71,927 71,927 — — Investment in unconsolidated investee (2) 6,918 — — 6,918 Total $ 376,118 $ 369,200 $ — $ 6,918 Financial liabilities: Securitization facilities 330,632 — 333,532 — 8.50% senior notes due 2024 250,000 — 247,680 — 8.50% senior notes due 2025 375,000 — 367,770 — Total $ 955,632 $ — $ 948,982 $ — December 31, Fair Value Measurements Using 2019 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 35,895 $ 35,895 $ — $ — Restricted cash ( 1) 45,069 45,069 — — Consumer loans and finance receivables (3)(4) 891,783 — — 1,015,798 Small business loans and finance receivables (3) 170,867 — — 171,785 Investment in unconsolidated investee (2) 6,703 — — 6,703 Total $ 1,150,317 $ 80,964 $ — $ 1,194,286 Financial liabilities: Liability for estimated losses on consumer loans guaranteed by the Company $ 1,511 $ — $ — $ 1,511 Revolving line of credit 72,000 — — 72,000 Securitization facilities 307,885 — 308,513 — 8.50% senior notes due 2024 250,000 — 238,750 — 8.50% senior notes due 2025 375,000 — 355,691 — Total $ 1,006,396 $ — $ 902,954 $ 73,511 (1) Restricted cash includes $64.8 million and $42.4 million in assets of consolidated VIEs as of December 31, 2020 and 2019, respectively. (2) Investment in unconsolidated investee is included in “Other assets” in the consolidated balance sheets. (3) Consumer and small business loans and finance receivables are included in “Loans and finance receivables, net” in the consolidated balance sheets prior to January 1, 2020. (4) Consumer loans and finance receivables includes $420.7 million in net assets of consolidated VIEs as of December 31, 2019. Cash and cash equivalents and restricted cash The carrying amount of restricted cash and cash equivalents approximates fair value. Prior to January 1, 2020 short-term loans, line of credit accounts, installment loans and RPAs were carried in the consolidated balance sheet net of the allowance for estimated losses, which was 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 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. Prior to January 1, 2020 the Company measured the fair value of its liability for third-party lender-owned consumer loans under Level 3 inputs. The fair value of these liabilities was 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 included historical loss rates, recent default trends and estimated remaining loan terms; therefore, the carrying value of these liabilities approximated the fair 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. The Company measures the fair value of its revolving line of credit using Level 3 inputs. The Company considered the fair value of its other long-term debt and the timing of expected payment(s). The fair values of the Company’s securitization facilities and senior notes are estimated based on quoted prices in markets that are not active, which are deemed Level 2 inputs. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 19. Subsequent Events Subsequent events have been reviewed through the date these financial statements were available to be issued. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements of the Company included herein have been prepared on the basis of accounting principles generally accepted in the United States (“GAAP”) and reflect the historical results of operations and cash flows of the Company during each respective period. The consolidated financial statements include goodwill and intangible assets arising from businesses previously acquired. 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. Intercompany transactions are eliminated. Certain prior period amounts have been reclassified to conform to the current year presentation. With the acquisition of OnDeck, small business loans comprise a significantly larger portion of the Company’s overall loan portfolio. Where presented on a disaggregated basis , loans and finance receivables that were previously grouped as short-term loans, line of credit accounts and installment loans and RPAs, are now grouped at the consumer and small business levels as management has deemed these groupings to be more meaningful to users of the financial statements . 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. With the acquisition of OnDeck, the Company owns a 55% controlling interest in On Deck Capital Australia PTY LTD (“OnDeck Australia”). The remaining interests are owned by an unrelated third party. We consolidate the financial position and results of operations of this entity under the voting interest model. The noncontrolling interest, which is presented as a separate component of consolidated equity, represents the minority owners' proportionate share of the equity of the entity and is adjusted for the minority owners' share of the earnings, losses, investments and distributions. On October 25, 2019, the Company’s U.K. businesses were placed into administration, which resulted in treatment of the businesses as discontinued operations for all periods presented. Throughout these consolidated financial statements, unless otherwise noted, current and prior year financial information is presented as if the U.K. businesses were excluded from continuing operations as required. For further information about the placement of the segment into administration, refer to “Discontinued Operations” below. |
Use of Estimates | Use of Estimates The preparation of these consolidated financial statements in conformity with 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. |
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 and Brazil are the British pound, the Australian 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. As a result of the Company’s exit from the United Kingdom in 2019, the AOCI balances related to the British pound were reclassified from AOCI to Net Income. See “Reclassification of AOCI to Net Income” below for more detail. |
Discontinued Operations | Discontinued Operations Beginning in 2007, the Company provided services in the United Kingdom under various brands, including QuickQuid, Pounds to Pocket and On Stride. Due in part to the level of claim and legal settlement costs incurred in conducting our U.K. business and unsuccessful discussions with U.K regulators, o n October 24, 2019, the Company announced its intent to exit the U.K. market. On October 25, 2019, Grant Thornton LLP, a licensed U.K. insolvency practitioner, was appointed as administrators (“Administrators”) to take control of management of the U.K. businesses. The effect of the U.K. businesses’ entry into administration was to place their management, affairs, business and property under the direct control of the Administrators. Accordingly, the Company deconsolidated its U.K. businesses as of October 25, 2019 and is presenting them as discontinued operations for all periods presented in . The Company recorded a one-time after-tax charge of $74.5 million, including one-time cash charges of $52.2 million, as a result of placing the UK businesses into administration. During the year ended December 31, 2020 the Company recorded and impairment charge of $0.4 million ($0.3 million net of taxes) to write down a receivable on certain expenses incurred by the Company prior to administration that were deemed non-reimbursable by the Administrators. The Company entered into a service agreement with the Administrators under which the Company provides certain administrative, technical and other services in exchange for compensation by the Administrators. The agreement is scheduled to expire April 8, 2021 but three-month The following table provides the financial results of the U.K. businesses, which meet the criteria of discontinued operations and, therefore, are excluded from the Company's results of continuing operations (in thousands): Year Ended December 31, 2020 2019 (1) 2018 Revenue $ — $ 83,772 $ 141,453 Cost of Revenue — 45,507 67,595 Gross Profit — 38,265 73,858 Expenses Marketing — 13,239 29,309 Operations and technology — 43,338 34,116 General and administrative — 3,011 1,917 Depreciation and amortization — 889 990 Total Expenses — 60,477 66,332 (Loss) Income from Operations — (22,212 ) 7,526 Interest income, net — 6 16 Foreign currency transaction loss, net — (1 ) (2 ) Impairment charges upon placement into administration (393 ) (97,513 ) — (Loss) Income before Income Taxes (393 ) (119,720 ) 7,540 (Benefit from) provision for income taxes (93 ) (28,316 ) 1,014 Net (loss) income from discontinued operations $ (300 ) $ (91,404 ) $ 6,526 (1) Includes results of the U.K. businesses from January 1, 2019 to October 25, 2019 |
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. Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets (in thousands): December 31, 2020 2019 2018 Cash and cash equivalents $ 297,273 $ 35,895 $ 28,114 Restricted cash 71,927 45,069 22,169 Total cash, cash equivalents and restricted cash $ 369,200 $ 80,964 $ 50,283 |
Revenue Recognition | Revenue Recognition The Company recognizes revenue based on the financing products and services it offers and on loans it acquires. “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 billing fees, purchase fees, origination fees, late fees and non-sufficient funds fees as permitted by applicable laws and pursuant to the agreement with the customer. Interest is generally recognized on an effective yield basis over the contractual term of the loan on installment loans, the estimated outstanding period of the draw on line of credit accounts, or the projected delivery term on RPAs. CSO fees are recognized over the term of the loan. Late and nonsufficient funds fees are recognized when assessed to the customer. Prior to the adoption of the fair value option effective January 1, 2020, origination fees as well as certain direct costs associated with originating loans were deferred and amortized into or against revenue on an effective yield basis over the term of the loan or the projected delivery term of the finance receivable. Subsequent to the election of the fair value option, these fees and costs are no longer eligible for deferral. As such, origination fees on installment loans, purchase fees on RPAs, and draw fees on line of credit accounts are recognized when assessed to the customer. |
Loans and Finance Receivables | Loans and Finance Receivables Prior to January 1, 2020, the Company carried its loans and finance receivables at amortized cost, less an allowance for estimated losses and unamortized net deferred origination costs. In determining the allowance, the Company applied a documented systematic methodology generally at a product level with charge-offs and recoveries, recorded as “Cost of revenue” in the consolidated statements of income. The allowance for single-pay installment loans classified as current was based on historical loss rates adjusted for recent default trends for current loans. For delinquent single-pay loans, the allowance was based on a six-month rolling average of loss rates by stage of collection. For other installment loans, RPAs and line of credit accounts, the Company generally used either a migration analysis or roll-rate based methodology to estimate losses inherent in the portfolio. The allowance under the migration analysis and roll-rate methodology was based on historical charge-off experience and the loss emergence period, which represented the average amount of time between the first occurrence of a loss event and the charge-off of a loan or RPA. The factors the Company considered to assess the adequacy of the allowance included past due performance, historical behavior of monthly vintages, underwriting changes, delinquency status, payment history and recency factors. Beginning January 1, 2020, the Company utilizes the fair value option on its entire loan and finance receivable portfolio. As such, loans and finance receivables are carried at fair value in the consolidated balance sheet with changes in fair value recorded in the consolidated income statement. To derive the fair value, the Company generally utilizes discounted cash flow analyses that factor in estimated losses, prepayments, utilization rates and servicing costs over the estimated duration of the underlying assets. Loss, prepayment, utilization and servicing cost assumptions are determined using historical loss data and include appropriate consideration of recent trends and anticipated future performance. Future cash flows are discounted using a rate of return that the Company believes a market participant would require. Accrued and unpaid interest and fees are included in “Loans and finance receivables” 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. Excluding OnDeck loans and finance receivables, when a customer does not make a scheduled payment as of the due date, that payment is considered delinquent, and the remainder of the receivable balance is considered current. If the customer does not make two consecutive payments, the entire account or loan is classified as delinquent and placed on a non-accrual status. For the OnDeck portfolio, a loan is considered to be delinquent when the daily or weekly payments are one day past due. Loans are placed in nonaccrual status and the accrual of interest income is stopped on loans that are delinquent and non-paying. Loans are returned to accrual status if they are brought to non-delinquent status or have performed in accordance with the contractual terms for a reasonable period of time and, in the Company’s judgment, will continue to make periodic principal and interest payments as scheduled. 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 or extend the due date on certain installment loans. In order to renew or extend a single-pay 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 single-pay 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. In response to the COVID-19 pandemic, the Company enhanced the forbearance options on its loan products, offering additional relief to impacted customers with features such as payment deferrals without the incurrence of additional finance charges or late fees. If a loan is deemed to be current and the customer makes a deferral or payment modification, the loan is still deemed to be current until the next scheduled payment is missed. The Company generally charges off loans and finance receivables between 60 and 65 days delinquent. If a loan or finance receivable is deemed uncollectible prior to this, it is charged off at that point. For the OnDeck portfolio, the Company generally charges off a loan when it is probable that that it will be unable to collect all of the remaining principal payments, which is generally after 90 days of delinquency and 30 days of non-activity. Loans and finance receivables classified as delinquent generally have an age of one to 64 days from the date any portion of the receivable became delinquent, as defined above. Recoveries on loans and finance receivables that were previously charged off are generally recognized when collected or sold. |
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 3 to 5 years Furniture, fixtures and equipment 3 to 7 years Leasehold improvements (1) 3 to 10 years (1) Leasehold improvements are depreciated over the lesser of the estimated useful life, remaining lease term, or 10 years. |
Software Development Costs | Software Development Costs The Company applies Accounting Standards Codification (“ASC”) 350-40, Internal Use Software |
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 The Company first assesses qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. In assessing the qualitative factors, management considers relevant events and circumstances including but not limited to macroeconomic conditions, industry and market environment, overall financial performance of the Company, cash flow from operating activities, market capitalization and stock price. If the Company determines that the quantitative impairment test is required, management 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. |
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 20 years. The costs of start-up activities and organization costs are charged to expense as incurred. |
Investments in Unconsolidated Investees | Investments in Unconsolidated Investees With the acquisition of OnDeck, as discussed in Note 2, the Company obtained a 58.5% equity interest in On Deck Capital Canada Holdings, Inc. (“OnDeck Canada”). Despite holding a majority of the equity interest, the Company does not have a controlling financial interest as it does not hold a majority of the voting interest. As such, the Company utilizes the equity method to account for its investment in OnDeck Canada in the Company’s consolidated financial statements. At their election, the minority shareholders of OnDeck Canada are entitled to require the Company to purchase their equity interests in OnDeck Canada at fair value. Conversely, the Company has the option to purchase the equity interests of OnDeck Canada from the minority shareholders at fair value. The put and call features embedded in the equity interests are not bifurcated and accounted for separately since they are clearly and closely related to the host agreement. As of December 31, 2020, the carrying value of the investment was $10.5 million, which the Company has included in “Other assets” on the consolidated balance sheets. Equity method income has been included in “Equity method investment income” in the consolidated income statements. The Company has an equity ownership position in an investment without a readily determinable value. In accordance with ASC 321, Investment – Equity Securities, |
Marketing Expenses | Marketing Expenses Marketing expenses consist of digital costs, lead purchase costs and offline marketing costs such as television and direct mail advertising. With the adoption of the fair value option on January 1, 2020, all marketing expenses are expensed as incurred. Prior to January 1, 2020, marketing costs directly related to loan and RPA originations were deferred and amortized against revenue, whereas marketing costs not directly resulting in loan and RPA originations were expensed as incurred. |
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 contact center and operations personnel costs, software maintenance expense, underwriting data from third-party vendors, bank and transaction fees 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. |
Stock Based Compensation | Stock-Based Compensation The Company accounts for its stock-based employee compensation plans in accordance with ASC 718, Compensation—Stock Compensation Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”) |
Reclassification of AOCI to Net Income | Reclassification of AOCI to Net Income In 2019 as part of the Company’s one-time charge related to the placement of the U.K. businesses into administration, the Company recorded a $13.2 million loss to recognize the cumulative translation adjustment balance that had been previously recorded to “Accumulated other comprehensive loss” on the consolidated balance sheets. In 2009, the Company began providing services in Australia and Canada under the brand name DollarsDirect. Due to the small size of the Australian and Canadian markets and our limited operations there, the Company decided to exit those markets in 2016 and reallocate its resources to other existing businesses. As a result, the Company ceased loan originations in those countries and wound down its loan portfolios. During 2018, the Company continued the liquidation process of the legal entities related to these operations and recorded a $2.3 million loss to “Foreign currency transaction gain (loss)” in the consolidated statements of income to recognize the cumulative translation adjustment balance that had been previously recorded to “Accumulated other comprehensive loss” on the consolidated balance sheets. The following table sets forth the components of accumulated other comprehensive loss, net of tax, for the year ended December 31, 2019 and 2018(in thousands): Foreign currency translation gain (loss) Total Balance at December 31, 2017 $ (7,086 ) $ (7,086 ) Other comprehensive loss from continuing operations, before reclassifications and tax (2,405 ) (2,405 ) Tax impact 519 519 Other comprehensive loss from discontinued operations, before reclassifications and tax (6,009 ) (6,009 ) Tax impact 982 982 Australia and Canada liquidation (1) 2,343 2,343 Tax impact (527 ) (527 ) Reclassification of certain deferred tax effects (2) (1,622 ) (1,622 ) Balance at December 31, 2018 $ (13,805 ) $ (13,805 ) Other comprehensive loss from continuing operations, before reclassifications and tax (671 ) (671 ) Tax impact 124 124 Other comprehensive gain from discontinued operations, before reclassifications and tax 1,551 1,551 Tax impact (364 ) (364 ) Placement of U.K. businesses into administration ( 3) 13,188 13,188 Tax impact (3,089 ) (3,089 ) Balance at December 31, 2019 $ (3,066 ) $ (3,066 ) (1) Amount represents the reclassification of foreign currency translation losses from AOCI to the consolidated statements of income due to the liquidation of the Company’s Australian and Canadian businesses. (2) Amount represents the reclassification of stranded tax effects from AOCI to retained earnings resulting from the change in the federal corporate income tax rate under the Tax Cuts and Jobs Act. ( 3 ) Amount represents the reclassification of foreign currency translation losses from AOCI to the consolidated statements of income due to the placement of the U.K. businesses into administration. |
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 asset and liability method of accounting for income taxes in order to recognize the tax effects of temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements. The Company accounts for uncertainty in income taxes in accordance with ASC 740, Income Taxes consolidated financial statements and prescribes how such benefit should be measured. The Company records interest and penalties related to tax matters as income tax expense in the consolidated statements of income. 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 attributable to Enova International, Inc. 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, 2020 2019 2018 Year Ended December 31, 2020 2019 2018 Numerator: Net income from continuing operations $ 378,144 $ 128,016 $ 63,572 Net (loss) income from discontinued operations (300 ) (91,404 ) 6,526 Net Income $ 377,844 $ 36,612 $ 70,098 Denominator: Total weighted average basic shares 31,897 33,715 33,993 Shares applicable to stock-based compensation 405 683 1,183 Total weighted average diluted shares 32,302 34,398 35,176 Earnings per common share – basic: Continuing operations $ 11.86 $ 3.80 $ 1.87 Discontinued operations (0.01 ) (2.71 ) 0.19 Earnings per common share – basic $ 11.85 $ 1.09 $ 2.06 Earnings per common share – diluted: Continuing operations $ 11.71 $ 3.72 $ 1.81 Discontinued operations (0.01 ) (2.66 ) 0.18 Earnings per common share – diluted $ 11.70 $ 1.06 $ 1.99 For the years ended December 31, 2020, 2019 and 2018, 2,052,307, 985,130 and 587,045 shares of common stock underlying stock options, respectively, and 627,804, 12,384 and 82,929 shares of common stock underlying restricted stock units, respectively, were excluded from the calculation of diluted net earnings per share because their effect would have been antidilutive. |
Adopted Accounting Standards | Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Codification Improvements to Topic 326, Financial Instruments—Credit Losses Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief Financial Instruments—Credit Losses—Measured at Amortized Cost Financial Instruments—Overall Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) : Effective Dates, which sets the mandatory effective date of ASU 2016‑13 for public business entities that meet the definition of an SEC filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, for annual periods beginning after December 15, 2019, and interim periods within those annual periods. The Company adopted ASU 2016-13 and the related aforementioned ASUs under the modified-retrospective method effective January 1, 2020 and elected the fair value option to account for all loans and finance receivables. The Company believes that the fair value option better reflects the value of its portfolio and its future economic performance as well as more closely aligning with the Company’s marginal decision-making processes that rely on risk-based pricing and discounted cash flow methodologies. In accordance with the transition guidance, the Company (i) released the allowance for estimated losses on loans and finance receivables at that date; (ii) released the unamortized net deferred origination costs at that date; and (iii) measured the loans and finance receivables at fair value. As a result of the adoption of this ASU, the Company’s loans and finance receivables are carried at fair value with changes in fair value recognized directly in earnings and origination fees and costs are no longer eligible for deferral. The following table summarizes the impact of adoption on the consolidated balance sheet as of January 1, 2020 (in thousands): Increase (decrease) Assets Loans and finance receivables at fair value $ 124,933 Total assets $ 124,933 Liabilities and Stockholders' Equity Accounts payable and accrued expenses $ (4,486 ) Deferred tax liabilities, net 30,478 Total liabilities 25,992 Stockholders' equity: Retained earnings 98,941 Total stockholders' equity 98,941 Total liabilities and stockholders' equity $ 124,933 In August 2018, the FASB issued ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract In August 2018, the FASB issued ASU 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment Accounting Standards to be Adopted in Future Periods In November 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Discontinued Operations in Financial Statements | The following table provides the financial results of the U.K. businesses, which meet the criteria of discontinued operations and, therefore, are excluded from the Company's results of continuing operations (in thousands): Year Ended December 31, 2020 2019 (1) 2018 Revenue $ — $ 83,772 $ 141,453 Cost of Revenue — 45,507 67,595 Gross Profit — 38,265 73,858 Expenses Marketing — 13,239 29,309 Operations and technology — 43,338 34,116 General and administrative — 3,011 1,917 Depreciation and amortization — 889 990 Total Expenses — 60,477 66,332 (Loss) Income from Operations — (22,212 ) 7,526 Interest income, net — 6 16 Foreign currency transaction loss, net — (1 ) (2 ) Impairment charges upon placement into administration (393 ) (97,513 ) — (Loss) Income before Income Taxes (393 ) (119,720 ) 7,540 (Benefit from) provision for income taxes (93 ) (28,316 ) 1,014 Net (loss) income from discontinued operations $ (300 ) $ (91,404 ) $ 6,526 (1) Includes results of the U.K. businesses from January 1, 2019 to October 25, 2019 |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets (in thousands): December 31, 2020 2019 2018 Cash and cash equivalents $ 297,273 $ 35,895 $ 28,114 Restricted cash 71,927 45,069 22,169 Total cash, cash equivalents and restricted cash $ 369,200 $ 80,964 $ 50,283 |
Schedule of Property and Equipment Estimated Useful Lives | Depreciation expense is generally provided on a straight-line basis, using the following estimated useful lives: Computer hardware and software 3 to 5 years Furniture, fixtures and equipment 3 to 7 years Leasehold improvements (1) 3 to 10 years (1) Leasehold improvements are depreciated over the lesser of the estimated useful life, remaining lease term, or 10 years. |
Schedule of Components of Accumulated Other Comprehensive Income (Loss), Net of Tax | The following table sets forth the components of accumulated other comprehensive loss, net of tax, for the year ended December 31, 2019 and 2018(in thousands): Foreign currency translation gain (loss) Total Balance at December 31, 2017 $ (7,086 ) $ (7,086 ) Other comprehensive loss from continuing operations, before reclassifications and tax (2,405 ) (2,405 ) Tax impact 519 519 Other comprehensive loss from discontinued operations, before reclassifications and tax (6,009 ) (6,009 ) Tax impact 982 982 Australia and Canada liquidation (1) 2,343 2,343 Tax impact (527 ) (527 ) Reclassification of certain deferred tax effects (2) (1,622 ) (1,622 ) Balance at December 31, 2018 $ (13,805 ) $ (13,805 ) Other comprehensive loss from continuing operations, before reclassifications and tax (671 ) (671 ) Tax impact 124 124 Other comprehensive gain from discontinued operations, before reclassifications and tax 1,551 1,551 Tax impact (364 ) (364 ) Placement of U.K. businesses into administration ( 3) 13,188 13,188 Tax impact (3,089 ) (3,089 ) Balance at December 31, 2019 $ (3,066 ) $ (3,066 ) (1) Amount represents the reclassification of foreign currency translation losses from AOCI to the consolidated statements of income due to the liquidation of the Company’s Australian and Canadian businesses. (2) Amount represents the reclassification of stranded tax effects from AOCI to retained earnings resulting from the change in the federal corporate income tax rate under the Tax Cuts and Jobs Act. ( 3 ) Amount represents the reclassification of foreign currency translation losses from AOCI to the consolidated statements of income due to the placement of the U.K. businesses into administration. |
Schedule of Reconciliation of Numerators and Denominators of Basic and Diluted Earnings per Share Computations | The following table sets forth the reconciliation of numerators and denominators of basic and diluted earnings per share computations for the years ended December 31, 2020 2019 2018 Year Ended December 31, 2020 2019 2018 Numerator: Net income from continuing operations $ 378,144 $ 128,016 $ 63,572 Net (loss) income from discontinued operations (300 ) (91,404 ) 6,526 Net Income $ 377,844 $ 36,612 $ 70,098 Denominator: Total weighted average basic shares 31,897 33,715 33,993 Shares applicable to stock-based compensation 405 683 1,183 Total weighted average diluted shares 32,302 34,398 35,176 Earnings per common share – basic: Continuing operations $ 11.86 $ 3.80 $ 1.87 Discontinued operations (0.01 ) (2.71 ) 0.19 Earnings per common share – basic $ 11.85 $ 1.09 $ 2.06 Earnings per common share – diluted: Continuing operations $ 11.71 $ 3.72 $ 1.81 Discontinued operations (0.01 ) (2.66 ) 0.18 Earnings per common share – diluted $ 11.70 $ 1.06 $ 1.99 |
Summary of Impact of Adoption ASU 2016-13 | The following table summarizes the impact of adoption on the consolidated balance sheet as of January 1, 2020 (in thousands): Increase (decrease) Assets Loans and finance receivables at fair value $ 124,933 Total assets $ 124,933 Liabilities and Stockholders' Equity Accounts payable and accrued expenses $ (4,486 ) Deferred tax liabilities, net 30,478 Total liabilities 25,992 Stockholders' equity: Retained earnings 98,941 Total stockholders' equity 98,941 Total liabilities and stockholders' equity $ 124,933 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Allocation of the Purchase Consideration | The allocation of the purchase consideration, subject to future measurement period adjustments, is as follows (in thousands): Purchase price Fair value of Company common stock issued to OnDeck shareholders (1) $ 104,313 Cash paid for outstanding OnDeck common stock (2) 7,204 Fair value of OnDeck equity awards assumed by the Company (3) 1,647 Cash paid for OnDeck equity awards (4) 2,571 Total purchase consideration $ 115,735 Allocation Cash and cash equivalents $ 55,100 Restricted cash 68,192 Loans and finance receivables at fair value (unpaid principal balance of $623,826) 528,567 Other receivables and prepaid expenses 9,501 Deferred tax assets, net 29,738 Property and equipment 13,527 Operating lease right-of-use assets 21,026 Intangible assets 25,600 Other assets 16,497 Total assets 767,748 Accounts payable and accrued expenses 30,528 Operating lease liabilities 34,726 Long-term debt 421,576 Bargain purchase gain (5) 163,999 Accumulated other comprehensive loss (137 ) Noncontrolling interest 1,321 Total liabilities and equity 652,013 Total purchase consideration $ 115,735 (1) Represents the fair value of Company common stock issued to OnDeck stockholders pursuant to the Merger Agreement. The fair value is based on 60,035,223 shares of OnDeck common stock outstanding as of October 12, 2020, an exchange ratio of 0.092 shares of Company common stock per share of OnDeck common stock and the closing price per share of Company common stock on October 12, 2020, of $18.74, as shares were transferred to OnDeck stockholders prior to the opening of markets on October 13, 2020. (2) Represents the cash consideration paid of $0.12 per outstanding share of OnDeck common stock based on 60,035,223 shares outstanding as of October 12, 2020, as shares were transferred to OnDeck stockholders prior to the opening of markets on October 13, 2020. (3) Equity-based awards held by OnDeck employees prior to the acquisition date have been replaced with Company equity-based awards. The portion of the equity-based awards that relates to services performed by the employee prior to the acquisition date is included within consideration transferred, and includes restricted stock units and performance-based restricted stock units. (4) Represents the cash consideration for the settlement and cancellation of 2,148,193 OnDeck stock options held by employees and non-employee directors of OnDeck. ( 5 ) As a result of the acquisition date fair value of the identifiable net assets acquired exceeding the sum of the value of consideration transferred, the Company recognized a bargain purchase gain of $ million, which is included in “Gain on bargain purchase ” in the consolidated statements of income. Uncertainty around the degree and duration of impact that the COVID-19 pandemic will have on OnDeck’s operations and financial results, along with the uncertainty surrounding its future non-compliance in its debt facilities, ability to renegotiate some of its existing facilities or repay outstanding indebtedness, and maintain sufficient liquidity are what likely led to a bargain purchase scenario. |
Schedule of Supplemental Unaudited Pro Forma Financial Information | The following supplemental unaudited pro forma financial information reflects the consolidated results of operations of the Company as if the acquisition had occurred on January 1, 2019 (in thousands): Unaudited pro forma results for the Year Ended December 31, 2020 2019 Revenue $ 1,373,299 $ 1,638,626 Net income from continuing operations attributable to the Company 121,475 170,226 |
Loans and Finance Receivables (
Loans and Finance Receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018 was as follows (in thousands): Year Ended December 31, 2020 2019 2018 Consumer loans and finance receivables revenue $ 962,119 $ 1,119,866 $ 939,105 Small business loans and finance receivables revenue 114,085 51,991 32,147 Total loans and finance receivables revenue 1,076,204 1,171,857 971,252 Other 7,506 2,900 1,369 Total Revenue $ 1,083,710 $ 1,174,757 $ 972,621 |
Components of Company-owned Loans and Finance Receivables at Fair Value | The components of Company-owned loans and finance receivables at December 31, 2020 were as follows (in thousands): As of December 31, 2020 Small Consumer Business Total Principal balance - accrual $ 547,015 $ 634,476 $ 1,181,491 Principal balance - non-accrual 29,389 52,254 81,643 Total principal balance 576,404 686,730 1,263,134 Loans and finance receivables at fair value - accrual 621,257 592,654 1,213,911 Loans and finance receivables at fair value - non-accrual 3,962 23,633 27,595 Loans and finance receivables at fair value 625,219 616,287 1,241,506 Difference between principal balance and fair value $ 48,815 $ (70,443 ) $ (21,628 ) |
Schedule of Changes in Fair Value of Company-owned Loans and Finance Receivables | Changes in the fair value of Company-owned loans and finance receivables during the year ended December 31, 2020 were as follows (dollars in thousands): Year Ended December 31, 2020 Small Consumer Business Total Balance at beginning of period $ 1,015,798 $ 171,785 $ 1,187,583 Originations or acquisitions ( 1) 758,305 898,383 1,656,688 Interest and fees ( 2) 962,120 114,084 1,076,204 Repayments (1,739,136 ) (538,527 ) (2,277,663 ) Charge-offs, net ( 3) (397,204 ) (52,248 ) (449,452 ) Net change in fair value ( 3) 28,774 21,161 49,935 Effect of foreign currency translation (3,438 ) 1,649 (1,789 ) Balance at end of period $ 625,219 $ 616,287 $ 1,241,506 (1) Includes $528.6 million of small business loans and finance receivables purchased as part of the acquisition of OnDeck. (2) Included in “Revenue” in the consolidated statements of income. (3) Included in “Change in Fair Value” in the consolidated statements of income. |
Components of Company-Owned Loans and Finance Receivables | As of December 31, 2019 Small Consumer Business Total Current receivables $ 965,834 $ 175,376 $ 1,141,210 Delinquent receivables: Delinquent payment amounts ( 1) 24,104 261 24,365 Receivables on non-accrual status 68,895 5,119 74,014 Total delinquent receivables 92,999 5,380 98,379 Total loans and finance receivables, gross 1,058,833 180,756 1,239,589 Less: Allowance for losses (167,050 ) (9,889 ) (176,939 ) Loans and finance receivables, net $ 891,783 $ 170,867 $ 1,062,650 (1) Represents the delinquent portion of installment loans and line of credit account balances for customers that have only missed one payment. See Note 1 “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 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, 2019 and 2018 were as follows (in thousands): Year Ended December 31, 2019 Small Consumer Business Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 140,443 $ 3,771 $ 144,214 Cost of revenue 576,581 26,968 603,549 Charge-offs (647,558 ) (26,395 ) (673,953 ) Recoveries 97,725 5,545 103,270 Effect of foreign currency translation (141 ) — (141 ) Balance at end of period $ 167,050 $ 9,889 $ 176,939 Liability for third-party lender-owned loans: Balance at beginning of period $ 2,166 $ — $ 2,166 Decrease in liability (655 ) — (655 ) Balance at end of period $ 1,511 $ — $ 1,511 Year Ended December 31, 2018 Small Consumer Business Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 101,930 $ 5,907 $ 107,837 Cost of revenue 492,928 10,569 503,497 Charge-offs (528,787 ) (17,407 ) (546,194 ) Recoveries 75,052 4,702 79,754 Effect of foreign currency translation (680 ) — (680 ) Balance at end of period $ 140,443 $ 3,771 $ 144,214 Liability for third-party lender-owned loans: Balance at beginning of period $ 2,258 $ — $ 2,258 Decrease in liability (92 ) — (92 ) Balance at end of period $ 2,166 $ — $ 2,166 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Classifications of Property and Equipment | Major classifications of property and equipment at December 31, 2020 and 2019 were as follows (in thousands): As of December 31, 2020 Cost Accumulated Depreciation Net Computer software $ 116,554 $ (60,248 ) $ 56,306 Furniture, fixtures and equipment 25,788 (19,274 ) 6,514 Leasehold improvements 26,391 (9,794 ) 16,597 Total $ 168,733 $ (89,316 ) $ 79,417 As of December 31, 2019 Cost Accumulated Depreciation Net Computer software $ 86,509 $ (47,573 ) $ 38,936 Furniture, fixtures and equipment 24,414 (18,777 ) 5,637 Leasehold improvements 17,707 (7,740 ) 9,967 Total $ 128,630 $ (74,090 ) $ 54,540 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 were as follows (in thousands): Balance as of January 1, 2019 $ 267,013 Balance as of December 31, 2019 $ 267,013 Acquisitions 961 Balance as of December 31, 2020 $ 267,974 |
Summary of Acquired Intangible Assets | Acquired intangible assets that are subject to amortization as of December 31, 2020 and 2019, were as follows (in thousands): As of December 31, 2020 Cost Accumulated Amortization Net Trade names and trademarks ( 1) 9,020 (1,157 ) 7,863 Developed technology ( 1) 19,100 (955 ) 18,145 Total $ 28,120 $ (2,112 ) $ 26,008 As of December 31, 2019 Cost Accumulated Amortization Net Customer relationships $ 3,497 $ (3,417 ) $ 80 Lead provider and broker relationships 5,689 (5,369 ) 320 Trademarks 2,523 (818 ) 1,705 Non-competition agreements 800 (720 ) 80 Total $ 12,509 $ (10,324 ) $ 2,185 (1) Includes acquired intangible assets related to the Company’s acquisition of OnDeck. See Note 2 for additional information. |
Summary of Estimated Future Amortization Expense | Estimated future amortization expense for the years ended December 31, is as follows (in thousands): Year Amount 2021 $ 4,859 2022 4,859 2023 4,859 2024 4,859 2025 3,904 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses at December 31, 2020 and 2019 were as follows (in thousands): As of December 31, 2020 2019 Unrecognized tax benefits $ 39,037 $ 44,780 Trade accounts payable 26,721 23,829 Accrued payroll and fringe benefits 28,603 18,747 Accrued interest payable 18,580 17,479 Liability for consumer loans funded by third-party lender 5,080 — Deferred fees on third-party consumer loans 2,171 11,266 Accrual for consumer loan payments rejected for non-sufficient funds 2,871 4,381 Liability for losses on third-party lender owned consumer loans — 1,511 Other accrued liabilities 1,008 170 Total $ 124,071 $ 122,163 |
Marketing Expenses (Tables)
Marketing Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Marketing Expenses [Abstract] | |
Schedule of Marketing Expenses | Marketing expenses for the years ended December 31, 2020, 2019 and 2018 were as follows (in thousands): Year Ended December 31, 2020 2019 2018 Advertising $ 37,069 $ 83,952 $ 66,442 Customer procurement expense including lead purchase costs 32,711 31,180 29,518 Total $ 69,780 $ 115,132 $ 95,960 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease Expenses | Lease expenses for the years ended December 31, 2020 Year Ended December 31, 2020 2019 Operating lease cost $ 7,181 $ 6,096 Operating lease impairment charge — 370 Variable lease cost 701 363 Short-term lease cost 120 158 Sublease income (345 ) (82 ) Total lease cost $ 7,657 $ 6,905 |
Future Minimum Lease Payments | Future minimum lease payments as of December 31, 2020 Year Amount 2021 $ 15,056 2022 15,083 2023 14,110 2024 13,857 2025 13,775 Thereafter 18,486 Total lease payments $ 90,367 Less: interest 22,411 Present value of lease liabilities $ 67,956 |
Weighted Average Remaining Lease Term and Discount Rate | The weighted average remaining lease term and discount rate as of December 31, 2020 2019 December 31, 2020 2019 Weighted average remaining lease term (years) Operating leases 6.1 7.2 Weighted average discount rate Operating leases 9.48 % 10.82 % |
Supplemental Cash Flow Disclosures Related to Leases | Supplemental cash flow disclosures related to leases for the years ended December 31, Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 9,468 $ 7,366 Right-of-use assets obtained in exchange for lease obligations Operating leases 23,597 59 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 December 31, 2020 2019 Securitization facilities $ 330,632 $ 307,885 Revolving line of credit — 72,000 8.50% senior notes due 2024 250,000 250,000 8.50% senior notes due 2025 375,000 375,000 Subtotal 955,632 1,004,885 Less: Long-term debt issuance costs (9,171 ) (13,704 ) Total long-term debt $ 946,461 $ 991,181 |
Schedule of Maturities of Long-term Debt | As of December 31, 2020, required principal payments under the terms of the long-term debt for each of the five years after December 31, 2020 are as follows (in thousands): Year Amount 2021 $ — 2022 — 2023 — 2024 — 2025 250,000 Thereafter 375,000 Securitization 331,643 (1 ) Total $ 956,643 (1) The 2019-A Notes mature on June 22, 2026, the 2019-1 Facility matures on February 25, 2022, the 2018-A Notes mature on May 20, 2026, the 2018-2 Facility matures on October 23, 2022, the 2018-1 Facility matures on July 22, 2023, the RAOD Facility matures on December 24, 2023, the ODART Facility matures on May 31, 2021, the ODAF Facility matures on August 8, 2022 and the ODFT Facility matures on December 31, 2021. The ODART Facility was repaid in full and terminated on February 19, 2021, and the 2019-1 Facility was repaid in full and terminated on February 25, 2021. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 were as follows (in thousands): As of December 31, 2020 2019 Deferred tax assets: Loans and finance receivables, net $ 10,775 $ 5,627 Compensation and benefits 7,914 4,699 Translation adjustments 2,132 839 Accrued rent and deferred finish out allowance 15,661 8,411 Foreign net operating loss carryforward 9,588 5,127 U.S. net operating loss carryforward 4,689 — Other 3,212 2,335 Total deferred tax assets 53,971 27,038 Deferred tax liabilities: Amortizable intangible assets 62,286 51,389 Property and equipment 15,963 11,775 Operating lease right-of-use asset 9,057 4,613 Other 2,625 2,567 Total deferred tax liabilities 89,931 70,344 Net deferred tax liabilities before valuation allowance (35,960 ) (43,306 ) Valuation allowance (12,169 ) (5,377 ) Net deferred tax liabilities $ (48,129 ) $ (48,683 ) |
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, 2020, 2019 and 2018 are shown below (in thousands): Year Ended December 31, 2020 2019 2018 Income before income taxes: Domestic $ 435,420 $ 170,069 $ 68,873 International — — — Income before income taxes $ 435,420 $ 170,069 $ 68,873 Current provision (benefit): Federal $ 39,066 $ 24,995 $ (16,464 ) International — — 42 State and local 6,399 6,151 (1,284 ) Total current provision (benefit) $ 45,465 $ 31,146 $ (17,706 ) Deferred provision: Federal $ 8,467 $ 7,626 $ 22,735 International — — — State and local 3,259 3,281 272 Total deferred provision $ 11,726 $ 10,907 $ 23,007 Total provision for income taxes $ 57,191 $ 42,053 $ 5,301 |
Schedule of Effective Income Tax Rate Reconciliation | The effective tax rate on income differs from the federal statutory rate of 21% for the years ended December 31, 2020, 2019 and 2018, for the following reasons (dollars in thousands): Year Ended December 31, 2020 2019 2018 Tax provision computed at the federal statutory income tax rate $ 91,438 $ 35,714 $ 14,463 State and local income taxes, net of federal tax benefits 8,422 5,254 2,660 Share-based compensation (91 ) (2,015 ) (1,790 ) Bargain purchase gain (34,440 ) — — Deferred tax adjustment from TCJA — — (10,284 ) 162(m) limit on deductibility of executive compensation 1,834 742 1,547 State rate adjustment 1,245 2,210 — Release of uncertain tax position (11,604 ) — — Other 387 148 (1,295 ) Total provision $ 57,191 $ 42,053 $ 5,301 Effective tax rate 13.1 % 24.7 % 7.7 % |
Summary of Valuation Allowance Activity | The following table summarizes the valuation allowance activity for the years ended December 31, 2020, 2019 and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Balance at beginning of period $ 5,377 $ 5,130 $ 2,650 Additions 6,792 247 2,480 Balance at end of period $ 12,169 $ 5,377 $ 5,130 |
Reconciliation of Activity Related to Unrecognized Tax Benefits | A reconciliation of the activity related to unrecognized tax benefits follows for the years ended December 31, 2020, 2019 and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Balance at beginning of period $ 53,613 $ 40,340 $ 727 Additions based on tax positions related to the current year — 15,085 8,248 Reductions based on tax positions related to the current year (4,114 ) — — Additions for tax positions of prior years 2,033 — 31,365 Reductions for tax positions of prior years (7,351 ) (1,812 ) — Additions for opening tax positions of acquired entity 6,460 — — Reductions due to settlements with the taxing authorities (11,604 ) — — Balance at end of period $ 39,037 $ 53,613 $ 40,340 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 (in thousands): As of December 31, 2020 2019 Prepaid expenses and other assets $ 3,972 $ 2,867 Accounts payable and accrued expenses $ 4,543 $ 3,397 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) - Enova LTIP | 12 Months Ended |
Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of RSU Activity | The following table summarizes the Company’s RSU activity during 2020 2018 Year Ended December 31, Year Ended December 31, Year Ended December 31, 2020 2019 2018 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 1,117,766 $ 21.09 1,242,422 $ 16.34 1,425,883 $ 12.00 Units granted 1,294,509 18.89 616,010 24.14 639,109 21.74 Shares issued (588,924 ) 19.61 (545,592 ) 14.23 (604,116 ) 11.90 Units forfeited (73,258 ) 20.56 (195,074 ) 19.61 (218,454 ) 16.12 Outstanding at end of year 1,750,093 $ 19.98 1,117,766 $ 21.09 1,242,422 $ 16.34 |
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity during 2020 2018 Year Ended December 31, Year Ended December 31, Year Ended December 31, 2020 2019 2018 Units Weighted Average Exercise Price Units Weighted Average Exercise Price Units Weighted Average Exercise Price Outstanding at beginning of year 2,084,297 $ 19.35 2,129,837 $ 17.32 2,054,092 $ 16.92 Options granted 576,223 22.81 513,583 21.34 481,003 21.54 Options exercised (16,625 ) 11.40 (362,798 ) 9.80 (319,764 ) 21.07 Options forfeited (21,939 ) 16.79 (196,325 ) 20.10 (85,494 ) 17.42 Outstanding at end of year 2,621,956 $ 20.18 2,084,297 $ 19.35 2,129,837 $ 17.32 Exercisable options at end of year 1,641,133 18.95 1,279,794 18.73 1,246,301 17.27 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Cash paid during the year for: Interest $ 74,901 $ 70,250 $ 68,350 Income taxes paid (recovered) 27,479 (39,392 ) 9,581 Non-cash investing and financing activities: Loans and finance receivables renewed $ 95,080 $ 146,039 $ 98,043 Fair value of acquired assets 772,376 — — Liabilities assumed in acquisitions 487,458 — — Issuance of common stock related to the acquisition of OnDeck (105,960 ) — — |
Operating Segment Information (
Operating Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
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, 2020, 2019 and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Revenue United States $ 1,071,694 $ 1,153,308 $ 946,515 Other international countries 12,016 21,449 26,106 Total revenue $ 1,083,710 $ 1,174,757 $ 972,621 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 are as follows (in thousands): December 31, Fair Value Measurements Using 2020 Level 1 Level 2 Level 3 Financial assets Consumer loans and finance receivables ( 1)(2) $ 625,219 $ — $ — $ 625,219 Small business loans and finance receivables ( 1)(2) 616,287 — — 616,287 Non-qualified savings plan assets ( 3) 3,972 3,972 — — Investment in trading security ( 4) 19,273 19,273 — — Total $ 1,264,751 $ 23,245 $ — $ 1,241,506 December 31, Fair Value Measurements Using 2019 Level 1 Level 2 Level 3 Financial assets Non-qualified savings plan assets ( 3) $ 2,867 $ 2,867 $ — $ — Investment in trading security ( 4) 11,449 11,449 — — Total $ 14,316 $ 14,316 $ — $ — (1) Consumer and small business loans and finance receivables are included in “Loans and finance receivables at fair value” in the consolidated balance sheets subsequent to December 31, 2019. (2) Consumer loans and finance receivables and small business loans and finance receivables include $277.6 million and $251.3 million in assets of consolidated VIEs, respectively, as of December 31, 2020. (3) The non-qualified savings plan assets are included in “Other receivables and prepaid expenses” in the Company’s consolidated balance sheets and have an offsetting liability of equal amount, which is included in “Accounts payable and accrued expenses” in the Company’s consolidated balance sheets. (4) Investment in trading security is included in “Other assets” in the Company’s consolidated balance sheets. |
Financial Assets and Liabilities Not Measured at Fair Value | The Company’s financial assets and liabilities as of December 31, 2020 and 2019 that are not measured at fair value in the consolidated balance sheets are as follows (in thousands): December 31, Fair Value Measurements Using 2020 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 297,273 $ 297,273 $ — $ — Restricted cash ( 1) 71,927 71,927 — — Investment in unconsolidated investee (2) 6,918 — — 6,918 Total $ 376,118 $ 369,200 $ — $ 6,918 Financial liabilities: Securitization facilities 330,632 — 333,532 — 8.50% senior notes due 2024 250,000 — 247,680 — 8.50% senior notes due 2025 375,000 — 367,770 — Total $ 955,632 $ — $ 948,982 $ — December 31, Fair Value Measurements Using 2019 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 35,895 $ 35,895 $ — $ — Restricted cash ( 1) 45,069 45,069 — — Consumer loans and finance receivables (3)(4) 891,783 — — 1,015,798 Small business loans and finance receivables (3) 170,867 — — 171,785 Investment in unconsolidated investee (2) 6,703 — — 6,703 Total $ 1,150,317 $ 80,964 $ — $ 1,194,286 Financial liabilities: Liability for estimated losses on consumer loans guaranteed by the Company $ 1,511 $ — $ — $ 1,511 Revolving line of credit 72,000 — — 72,000 Securitization facilities 307,885 — 308,513 — 8.50% senior notes due 2024 250,000 — 238,750 — 8.50% senior notes due 2025 375,000 — 355,691 — Total $ 1,006,396 $ — $ 902,954 $ 73,511 (1) Restricted cash includes $64.8 million and $42.4 million in assets of consolidated VIEs as of December 31, 2020 and 2019, respectively. (2) Investment in unconsolidated investee is included in “Other assets” in the consolidated balance sheets. (3) Consumer and small business loans and finance receivables are included in “Loans and finance receivables, net” in the consolidated balance sheets prior to January 1, 2020. (4) Consumer loans and finance receivables includes $420.7 million in net assets of consolidated VIEs as of December 31, 2019. |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 24, 2019 | ||
Significant Accounting Policies [Line Items] | |||||
Revenue | $ 1,083,710 | $ 1,174,757 | $ 972,621 | ||
Days for delinquent loans remaining principal payment | 90 days | ||||
Non activity loans and finance receivables period | 30 days | ||||
Foreign currency transaction gain (loss), net | $ (514) | $ 216 | $ 2,318 | ||
Deferred income tax assets valuation allowance percentage | 50.00% | ||||
Stock options | |||||
Significant Accounting Policies [Line Items] | |||||
Stock options not included in computation of diluted earnings per share | 2,052,307 | 985,130 | 587,045 | ||
Restricted stock units | |||||
Significant Accounting Policies [Line Items] | |||||
Stock options not included in computation of diluted earnings per share | 627,804 | 12,384 | 82,929 | ||
Other Assets | |||||
Significant Accounting Policies [Line Items] | |||||
Carrying value of investment | $ 6,900 | $ 6,700 | |||
Other Assets | On Deck Capital Incorporation | |||||
Significant Accounting Policies [Line Items] | |||||
Carrying value of investment | $ 10,500 | ||||
Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Cash and cash equivalent maturity period | 90 days | ||||
Days for delinquent loans to be charged off | 65 days | ||||
Delinquent loans expiry period (in days) | 64 days | ||||
Expected period of life of intangible assets | 20 years | ||||
Maximum | Software Development Costs | |||||
Significant Accounting Policies [Line Items] | |||||
Property and equipment, useful life | 5 years | ||||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Days for delinquent loans to be charged off | 60 days | ||||
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 | 1 year | ||||
U.K. Business | |||||
Significant Accounting Policies [Line Items] | |||||
Options to extend term | 3 months | ||||
Revenue | $ 5,000 | 1,900 | |||
Administrative fee due | 900 | 1,800 | |||
Foreign currency translation gain (loss) | [1] | $ 13,188 | |||
Discontinued Operations | |||||
Significant Accounting Policies [Line Items] | |||||
Impairment charges | 400 | ||||
Impairment charge net of taxes | $ 300 | ||||
Discontinued Operations | U.K. Business | |||||
Significant Accounting Policies [Line Items] | |||||
Lending activities, recorded one-time exit charge, after tax | $ 74,500 | ||||
Lending activities, recorded one-time exit cash charges | $ 52,200 | ||||
Enova | |||||
Significant Accounting Policies [Line Items] | |||||
Ownership percentage of controlling interest | 55.00% | ||||
Ownership percentage of non-controlling interest | 58.50% | ||||
[1] | Amount represents the reclassification of foreign currency translation losses from AOCI to the consolidated statements of income due to the placement of the U.K. businesses into administration. |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Financial Results (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Expenses | ||||
Net (loss) income from discontinued operations | $ (300) | $ (91,404) | $ 6,526 | |
U.K. Business | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Revenue | 83,772 | [1] | 141,453 | |
Cost of Revenue | 45,507 | [1] | 67,595 | |
Gross Profit | 38,265 | [1] | 73,858 | |
Expenses | ||||
Marketing | 13,239 | [1] | 29,309 | |
Operations and technology | 43,338 | [1] | 34,116 | |
General and administrative | 3,011 | [1] | 1,917 | |
Depreciation and amortization | 889 | [1] | 990 | |
Total Expenses | 60,477 | [1] | 66,332 | |
(Loss) Income from Operations | (22,212) | [1] | 7,526 | |
Interest income, net | 6 | [1] | 16 | |
Foreign currency transaction loss, net | (1) | [1] | (2) | |
Impairment charges upon placement into administration | (393) | (97,513) | [1] | |
(Loss) Income before Income Taxes | (393) | (119,720) | [1] | 7,540 |
(Benefit from) provision for income taxes | (93) | (28,316) | [1] | 1,014 |
Net (loss) income from discontinued operations | $ (300) | $ (91,404) | [1] | $ 6,526 |
[1] | Includes results of the U.K. businesses from January 1, 2019 to October 25, 2019 |
Significant Accounting Polici_6
Significant Accounting Policies - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Accounting Policies [Abstract] | ||||||
Cash and cash equivalents | $ 297,273 | [1] | $ 35,895 | [1] | $ 28,114 | |
Restricted cash | 71,927 | [1] | 45,069 | [1] | 22,169 | |
Total cash, cash equivalents and restricted cash | $ 369,200 | $ 80,964 | $ 50,283 | $ 72,455 | ||
[1] | Includes amounts in consolidated variable interest entities (“VIEs”) presented separately in the table below. |
Significant Accounting Polici_7
Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Detail) | 12 Months Ended | |
Dec. 31, 2020 | ||
Computer Hardware and Software | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 3 years | |
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 Polici_8
Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Detail) (Parenthetical) - Leasehold Improvements | 12 Months Ended | |
Dec. 31, 2020 | [1] | |
Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 10 years | |
Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 3 years | |
[1] | Leasehold improvements are depreciated over the lesser of the estimated useful life, remaining lease term, or 10 years. |
Significant Accounting Polici_9
Significant Accounting Policies - Schedule of Components of Accumulated Other Comprehensive Loss, Net of Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Other comprehensive loss from continuing operations, before reclassifications and tax | $ (671) | $ (2,405) | ||
Tax impact | 124 | 519 | ||
Other comprehensive loss from discontinued operations, before reclassifications and tax | 1,551 | (6,009) | ||
Tax impact | (364) | 982 | ||
Australia and Canada liquidation | [1] | 2,343 | ||
Tax impact | (527) | |||
Reclassification of certain deferred tax effects(2) | 346 | (1,622) | [2] | |
Tax impact | (3,089) | |||
Ending Balance | 376,613 | |||
U.K. Business | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Placement of U.K. businesses into administration | [3] | 13,188 | ||
Foreign Currency Translation Gain (Loss) | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Balance | (13,805) | (7,086) | ||
Other comprehensive loss from continuing operations, before reclassifications and tax | (671) | (2,405) | ||
Tax impact | 124 | 519 | ||
Other comprehensive loss from discontinued operations, before reclassifications and tax | 1,551 | (6,009) | ||
Tax impact | (364) | 982 | ||
Australia and Canada liquidation | [1] | 2,343 | ||
Tax impact | (527) | |||
Reclassification of certain deferred tax effects(2) | [2] | (1,622) | ||
Tax impact | (3,089) | |||
Ending Balance | (3,066) | (13,805) | ||
Foreign Currency Translation Gain (Loss) | U.K. Business | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Placement of U.K. businesses into administration | [3] | 13,188 | ||
Accumulated Other Comprehensive (Loss) Income | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Balance | (13,805) | (7,086) | ||
Other comprehensive loss from continuing operations, before reclassifications and tax | (671) | (2,405) | ||
Other comprehensive loss from discontinued operations, before reclassifications and tax | 1,551 | (6,009) | ||
Tax impact | (527) | |||
Reclassification of certain deferred tax effects(2) | 1,622 | |||
Ending Balance | $ (3,066) | $ (13,805) | ||
[1] | Amount represents the reclassification of foreign currency translation losses from AOCI to the consolidated statements of income due to the liquidation of the Company’s Australian and Canadian businesses. | |||
[2] | Amount represents the reclassification of stranded tax effects from AOCI to retained earnings resulting from the change in the federal corporate income tax rate under the Tax Cuts and Jobs Act. | |||
[3] | Amount represents the reclassification of foreign currency translation losses from AOCI to the consolidated statements of income due to the placement of the U.K. businesses into administration. |
Significant Accounting Polic_10
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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||
Net income from continuing operations | $ 378,144 | $ 128,016 | $ 63,572 |
Net (loss) income from discontinued operations | (300) | (91,404) | 6,526 |
Net income attributable to Enova International, Inc. | $ 377,844 | $ 36,612 | $ 70,098 |
Denominator: | |||
Total weighted average basic shares | 31,897 | 33,715 | 33,993 |
Shares applicable to stock-based compensation | 405 | 683 | 1,183 |
Total weighted average diluted shares | 32,302 | 34,398 | 35,176 |
Earnings per common share – basic: | |||
Continuing operations | $ 11.86 | $ 3.80 | $ 1.87 |
Discontinued operations | (0.01) | (2.71) | 0.19 |
Earnings (loss) per common share – basic | 11.85 | 1.09 | 2.06 |
Earnings per common share – diluted: | |||
Continuing operations | 11.71 | 3.72 | 1.81 |
Discontinued operations | (0.01) | (2.66) | 0.18 |
Earnings (loss) per common share – diluted | $ 11.70 | $ 1.06 | $ 1.99 |
Significant Accounting Polic_11
Significant Accounting Policies -Summary of Impact of Adoption ASU 2016-13 (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | ||
Assets | |||||
Loans and finance receivables at fair value | $ 1,241,506 | [1] | $ 1,187,583 | ||
Total assets | 2,108,075 | 1,574,352 | |||
Liabilities and Stockholders' Equity | |||||
Accounts payable and accrued expenses | [1] | 124,071 | 122,163 | ||
Deferred tax liabilities, net | 48,129 | 48,683 | |||
Total liabilities | 1,189,241 | 1,197,739 | |||
Stockholders' equity: | |||||
Retained earnings | 849,466 | 372,681 | |||
Total Enova International, Inc. stockholders' equity | 917,348 | 376,613 | |||
Total liabilities and stockholders' equity | $ 2,108,075 | $ 1,574,352 | |||
ASU 2016-13 | Adjustments | |||||
Assets | |||||
Loans and finance receivables at fair value | $ 124,933 | ||||
Total assets | 124,933 | ||||
Liabilities and Stockholders' Equity | |||||
Accounts payable and accrued expenses | (4,486) | ||||
Deferred tax liabilities, net | 30,478 | ||||
Total liabilities | 25,992 | ||||
Stockholders' equity: | |||||
Retained earnings | 98,941 | ||||
Total Enova International, Inc. stockholders' equity | 98,941 | ||||
Total liabilities and stockholders' equity | $ 124,933 | ||||
[1] | Includes amounts in consolidated variable interest entities (“VIEs”) presented separately in the table below. |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Oct. 12, 2020 | Jul. 28, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||||
Business acquisition, value of common stock and cash provided in exchange | $ 115,735 | |||||
Estimated Tax Rate | 23.81% | |||||
Revenue | $ 1,083,710 | $ 1,174,757 | $ 972,621 | |||
Business acquisition, transaction related costs recognized | 17,700 | |||||
Net income attributable to Enova International, Inc. | 377,844 | $ 36,612 | $ 70,098 | |||
Gain on bargain purchase | 163,999 | |||||
General and Administrative Expense | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, transaction related costs recognized | $ 20,000 | |||||
Developed Technology | ||||||
Business Acquisition [Line Items] | ||||||
Expected period of life of intangible assets | 5 years | |||||
On Deck Capital, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Merger agreement date | Jul. 28, 2020 | |||||
Business acquisition, transaction completed date | Oct. 13, 2020 | |||||
Business acquisition per share price to be received by shareholders | $ 18.74 | $ 0.12 | ||||
Business acquisition number of common shares issuable for each common stock held by shareholders | 0.092 | |||||
Acquisition of OnDeck, shares | 5,600,000 | |||||
Business acquisition, value of common stock and cash provided in exchange | $ 111,500 | |||||
Business acquisition, cancellation or replacement of certain equity awards | 4,200 | |||||
Revenue | $ 55,900 | |||||
Business acquisition, transaction related costs recognized | 12,400 | |||||
Net income attributable to Enova International, Inc. | $ 15,400 | |||||
Gain on bargain purchase | $ 164,000 | |||||
On Deck Capital, Inc. | Developed Technology | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets | $ 19,100 | |||||
Expected period of life of intangible assets | 5 years | |||||
On Deck Capital, Inc. | Trade Name | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets | $ 6,500 | |||||
Expected period of life of intangible assets | 7 years |
Acquisitions - Schedule of Allo
Acquisitions - Schedule of Allocation of the Purchase Consideration (Detail) $ in Thousands | Jul. 28, 2020USD ($) |
Purchase price | |
Fair value of Company common stock issued to OnDeck shareholders(1) | $ 104,313 |
Cash paid for outstanding OnDeck common stock(2) | 7,204 |
Fair value of OnDeck equity awards assumed by the Company(3) | 1,647 |
Cash paid for OnDeck equity awards(4) | 2,571 |
Total purchase consideration | 115,735 |
Allocation | |
Cash and cash equivalents | 55,100 |
Restricted cash | 68,192 |
Loans and finance receivables at fair value (unpaid principal balance of $623,826) | 528,567 |
Other receivables and prepaid expenses | 9,501 |
Deferred tax assets, net | 29,738 |
Property and equipment | 13,527 |
Operating lease right-of-use assets | 21,026 |
Intangible assets | 25,600 |
Other assets | 16,497 |
Total assets | 767,748 |
Accounts payable and accrued expenses | 30,528 |
Operating lease liabilities | 34,726 |
Long-term debt | 421,576 |
Bargain purchase gain(5) | 163,999 |
Accumulated other comprehensive loss | (137) |
Noncontrolling interest | 1,321 |
Total liabilities and equity | 652,013 |
Total purchase consideration | $ 115,735 |
Acquisitions - Schedule of Al_2
Acquisitions - Schedule of Allocation of the Purchase Consideration (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Thousands | Oct. 12, 2020 | Dec. 31, 2020 | Jul. 28, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Common stock, shares outstanding | 35,762,926 | 32,974,714 | ||
Gain on bargain purchase | $ 163,999 | |||
On Deck Capital, Inc. | ||||
Business Acquisition [Line Items] | ||||
Business acquisition number of common shares issuable for each common stock held by shareholders | 0.092 | |||
Common stock, shares outstanding | 60,035,223 | |||
Business acquisition per share price to be received by shareholders | $ 18.74 | $ 0.12 | ||
Stock options held by employees and non-employee directors of OnDeck | 2,148,193 | |||
Gain on bargain purchase | $ 164,000 |
Acquisitions - Schedule of Supp
Acquisitions - Schedule of Supplemental Unaudited Pro Forma Financial Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Combinations [Abstract] | ||
Revenue | $ 1,373,299 | $ 1,638,626 |
Net income from continuing operations attributable to the Company | $ 121,475 | $ 170,226 |
Loans and Finance Receivables -
Loans and Finance Receivables - Schedule of Revenue Generated from Loans and Finance Receivables (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans and finance receivables revenue | $ 1,076,204 | [1] | $ 1,171,857 | $ 971,252 |
Other | 7,506 | 2,900 | 1,369 | |
Total Revenue | 1,083,710 | 1,174,757 | 972,621 | |
Consumer Loans and Finance Receivables Revenue | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans and finance receivables revenue | 962,119 | 1,119,866 | 939,105 | |
Small Business Loans and Finance Receivables Revenue | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans and finance receivables revenue | $ 114,085 | $ 51,991 | $ 32,147 | |
[1] | Included in “Revenue” in the consolidated statements of income. |
Loans and Finance Receivables_2
Loans and Finance Receivables - Components of Company-owned Loans and Finance Receivables At Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Principal balance - accrual | $ 1,181,491 | ||
Principal balance - non-accrual | 81,643 | ||
Total principal balance | 1,263,134 | ||
Loans and finance receivables at fair value - accrual | 1,213,911 | ||
Loans and finance receivables at fair value - non-accrual | 27,595 | ||
Loans and finance receivables at fair value | 1,241,506 | [1] | $ 1,187,583 |
Difference between principal balance and fair value | (21,628) | ||
Consumer | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Principal balance - accrual | 547,015 | ||
Principal balance - non-accrual | 29,389 | ||
Total principal balance | 576,404 | ||
Loans and finance receivables at fair value - accrual | 621,257 | ||
Loans and finance receivables at fair value - non-accrual | 3,962 | ||
Loans and finance receivables at fair value | 625,219 | 1,015,798 | |
Difference between principal balance and fair value | 48,815 | ||
Small Business | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Principal balance - accrual | 634,476 | ||
Principal balance - non-accrual | 52,254 | ||
Total principal balance | 686,730 | ||
Loans and finance receivables at fair value - accrual | 592,654 | ||
Loans and finance receivables at fair value - non-accrual | 23,633 | ||
Loans and finance receivables at fair value | 616,287 | $ 171,785 | |
Difference between principal balance and fair value | $ (70,443) | ||
[1] | Includes amounts in consolidated variable interest entities (“VIEs”) presented separately in the table below. |
Loans and Finance Receivables_3
Loans and Finance Receivables - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Notes And Loans Receivable [Line Items] | ||
Active consumer loans owned by third-party lenders | $ 10.2 | $ 27.6 |
Accrual for losses on consumer loan guaranty obligations | 10.3 | |
Accrual for third party lender owned consumer loans, outstanding principle amount | 8.8 | |
Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Aggregate fair value of loans and finance receivables that are 90 days or more past due | 14.3 | |
Aggregate fair value of loans and finance receivables in non-accrual status | 14.1 | |
Aggregate unpaid principal balance for loans and finance receivables that are 90 days or more past due | $ 33.9 |
Loans and Finance Receivables_4
Loans and Finance Receivables - Schedule of Changes in Fair Value of Company-owned Loans and Finance Receivables (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Accounts Notes And Loans Receivable [Line Items] | |||||
Balance at beginning of period | $ 1,187,583 | ||||
Originations or acquisitions | [1] | 1,656,688 | |||
Interest and fees | 1,076,204 | [2] | $ 1,171,857 | $ 971,252 | |
Repayments | (2,277,663) | ||||
Charge-offs, net | [3] | (449,452) | |||
Net change in fair value | [3] | 49,935 | |||
Effect of foreign currency translation | (1,789) | ||||
Balance at end of period | 1,241,506 | [4] | 1,187,583 | ||
Consumer | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Balance at beginning of period | 1,015,798 | ||||
Originations or acquisitions | [1] | 758,305 | |||
Interest and fees | [2] | 962,120 | |||
Repayments | (1,739,136) | ||||
Charge-offs, net | [3] | (397,204) | |||
Net change in fair value | [3] | 28,774 | |||
Effect of foreign currency translation | (3,438) | ||||
Balance at end of period | 625,219 | 1,015,798 | |||
Small Business | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Balance at beginning of period | 171,785 | ||||
Originations or acquisitions | [1] | 898,383 | |||
Interest and fees | [2] | 114,084 | |||
Repayments | (538,527) | ||||
Charge-offs, net | [3] | (52,248) | |||
Net change in fair value | [3] | 21,161 | |||
Effect of foreign currency translation | 1,649 | ||||
Balance at end of period | $ 616,287 | $ 171,785 | |||
[1] | Includes $528.6 million of small business loans and finance receivables purchased as part of the acquisition of OnDeck. | ||||
[2] | Included in “Revenue” in the consolidated statements of income. | ||||
[3] | Included in “Change in Fair Value” in the consolidated statements of income. | ||||
[4] | Includes amounts in consolidated variable interest entities (“VIEs”) presented separately in the table below. |
Loans and Finance Receivables_5
Loans and Finance Receivables - Schedule of Changes in Fair Value of Company-owned Loans and Finance Receivables (Parenthetical) (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Originations or acquisitions | $ 1,656,688 | [1] |
Small Business | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Originations or acquisitions | 898,383 | [1] |
On Deck Capital Incorporation | Small Business | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Originations or acquisitions | $ 528,600 | |
[1] | Includes $528.6 million of small business loans and finance receivables purchased as part of the acquisition of OnDeck. |
Loans and Finance Receivables_6
Loans and Finance Receivables - Components of Company-Owned Loans and Finance Receivables (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Current receivables | $ 1,141,210 | |||
Delinquent payment amounts | [1] | 24,365 | ||
Receivables on non-accrual status | 74,014 | |||
Total delinquent receivables | 98,379 | |||
Total loans and finance receivables, gross | 1,239,589 | |||
Less: Allowance for losses | (176,939) | $ (144,214) | $ (107,837) | |
Loans and finance receivables, net | [2] | 1,062,650 | ||
Consumer | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Current receivables | 965,834 | |||
Delinquent payment amounts | [1] | 24,104 | ||
Receivables on non-accrual status | 68,895 | |||
Total delinquent receivables | 92,999 | |||
Total loans and finance receivables, gross | 1,058,833 | |||
Less: Allowance for losses | (167,050) | (140,443) | (101,930) | |
Loans and finance receivables, net | 891,783 | |||
Small Business | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Current receivables | 175,376 | |||
Delinquent payment amounts | [1] | 261 | ||
Receivables on non-accrual status | 5,119 | |||
Total delinquent receivables | 5,380 | |||
Total loans and finance receivables, gross | 180,756 | |||
Less: Allowance for losses | (9,889) | $ (3,771) | $ (5,907) | |
Loans and finance receivables, net | $ 170,867 | |||
[1] | Represents the delinquent portion of installment loans and line of credit account balances for customers that have only missed one payment. See Note 1 “Significant Accounting Policies-Current and Delinquent Loans and Finance Receivables” for additional information. | |||
[2] | Includes amounts in consolidated variable interest entities (“VIEs”) presented separately in the table below. |
Loans and Finance Receivables_7
Loans and Finance Receivables - Schedule of Changes in Allowance for Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for losses for Company-owned loans and finance receivables | ||
Balance at beginning of period | $ 144,214 | $ 107,837 |
Cost of revenue | 603,549 | 503,497 |
Charge-offs | (673,953) | (546,194) |
Recoveries | 103,270 | 79,754 |
Effect of foreign currency translation | (141) | (680) |
Balance at end of period | 176,939 | 144,214 |
Liability for third-party lender-owned loans | ||
Balance at beginning of period | 2,166 | 2,258 |
Decrease in liability | (655) | (92) |
Balance at end of period | 1,511 | 2,166 |
Consumer | ||
Allowance for losses for Company-owned loans and finance receivables | ||
Balance at beginning of period | 140,443 | 101,930 |
Cost of revenue | 576,581 | 492,928 |
Charge-offs | (647,558) | (528,787) |
Recoveries | 97,725 | 75,052 |
Effect of foreign currency translation | (141) | (680) |
Balance at end of period | 167,050 | 140,443 |
Liability for third-party lender-owned loans | ||
Balance at beginning of period | 2,166 | 2,258 |
Decrease in liability | (655) | (92) |
Balance at end of period | 1,511 | 2,166 |
Small Business | ||
Allowance for losses for Company-owned loans and finance receivables | ||
Balance at beginning of period | 3,771 | 5,907 |
Cost of revenue | 26,968 | 10,569 |
Charge-offs | (26,395) | (17,407) |
Recoveries | 5,545 | 4,702 |
Balance at end of period | $ 9,889 | $ 3,771 |
Property and Equipment - Additi
Property and Equipment - Additional information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |||
Capitalized internal software development costs | $ 26.7 | $ 16.8 | $ 10.9 |
Depreciation expense | $ 18 | $ 14 | $ 13.1 |
Property and Equipment - Classi
Property and Equipment - Classifications of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, Cost | $ 168,733 | $ 128,630 |
Property and equipment, Accumulated Depreciation | (89,316) | (74,090) |
Property and equipment, Net | 79,417 | 54,540 |
Computer Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Cost | 116,554 | 86,509 |
Property and equipment, Accumulated Depreciation | (60,248) | (47,573) |
Property and equipment, Net | 56,306 | 38,936 |
Furniture, Fixtures and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Cost | 25,788 | 24,414 |
Property and equipment, Accumulated Depreciation | (19,274) | (18,777) |
Property and equipment, Net | 6,514 | 5,637 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Cost | 26,391 | 17,707 |
Property and equipment, Accumulated Depreciation | (9,794) | (7,740) |
Property and equipment, Net | $ 16,597 | $ 9,967 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Changes in Carrying Value of Goodwill (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill, Beginning Balance | $ 267,013 |
Acquisitions | 961 |
Goodwill, Ending Balance | $ 267,974 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite Lived Intangible Assets [Line Items] | |||||
Goodwill impairment loss | $ 0 | ||||
Amortization of Intangible Assets | $ 1,800,000 | $ 1,100,000 | $ 1,100,000 | $ 1,800,000 | |
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 | 20 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 | ||||
Developed Technology | |||||
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 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Acquired Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Acquired Finite Lived Intangible Assets [Line Items] | |||
Acquired intangible assets, Cost | $ 28,120 | $ 12,509 | |
Acquired intangible assets, Accumulated Amortization | (2,112) | (10,324) | |
Acquired intangible assets, Net | 26,008 | 2,185 | |
Trade Names and Trademarks | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Acquired intangible assets, Cost | 9,020 | ||
Acquired intangible assets, Accumulated Amortization | (1,157) | ||
Acquired intangible assets, Net | 7,863 | ||
Developed Technology | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Acquired intangible assets, Cost | [1] | 19,100 | |
Acquired intangible assets, Accumulated Amortization | [1] | (955) | |
Acquired intangible assets, Net | [1] | $ 18,145 | |
Customer Relationships | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Acquired intangible assets, Cost | 3,497 | ||
Acquired intangible assets, Accumulated Amortization | (3,417) | ||
Acquired intangible assets, Net | 80 | ||
Lead Provider and Broker Relationships | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Acquired intangible assets, Cost | 5,689 | ||
Acquired intangible assets, Accumulated Amortization | (5,369) | ||
Acquired intangible assets, Net | 320 | ||
Trademarks | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Acquired intangible assets, Cost | 2,523 | ||
Acquired intangible assets, Accumulated Amortization | (818) | ||
Acquired intangible assets, Net | 1,705 | ||
Non-Competition Agreements | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Acquired intangible assets, Cost | 800 | ||
Acquired intangible assets, Accumulated Amortization | (720) | ||
Acquired intangible assets, Net | $ 80 | ||
[1] | Includes acquired intangible assets related to the Company’s acquisition of OnDeck. See Note 2 for additional information. |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Summary of Estimated Future Amortization Expense (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2021 | $ 4,859 |
2022 | 4,859 |
2023 | 4,859 |
2024 | 4,859 |
2025 | $ 3,904 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |||
Unrecognized tax benefits | $ 39,037 | $ 44,780 | |
Trade accounts payable | 26,721 | 23,829 | |
Accrued payroll and fringe benefits | 28,603 | 18,747 | |
Accrued interest payable | 18,580 | 17,479 | |
Liability for consumer loans funded by third-party lender | 5,080 | ||
Deferred fees on third-party consumer loans | 2,171 | 11,266 | |
Accrual for consumer loan payments rejected for non-sufficient funds | 2,871 | 4,381 | |
Liability for losses on third-party lender owned consumer loans | 1,511 | ||
Other accrued liabilities | 1,008 | 170 | |
Total | [1] | $ 124,071 | $ 122,163 |
[1] | Includes amounts in consolidated variable interest entities (“VIEs”) presented separately in the table below. |
Marketing Expenses - Schedule o
Marketing Expenses - Schedule of Marketing Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Marketing Expenses [Abstract] | |||
Advertising | $ 37,069 | $ 83,952 | $ 66,442 |
Customer procurement expense including lead purchase costs | 32,711 | 31,180 | 29,518 |
Total | $ 69,780 | $ 115,132 | $ 95,960 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2018 | |
Lessee Lease Description [Line Items] | ||
Option to extend, existence, operating lease | true | |
Option to extend, description, operating lease | Certain leases include options to extend the leases for up to five years | |
Option to terminate, existence, operating lease | true | |
Option to terminate, description, operating lease | while others include options to terminate the leases within one year | |
Option to terminate, operating lease, term | 1 year | |
Rent Expense | $ 5.6 | |
Minimum | ||
Lessee Lease Description [Line Items] | ||
Operating leases, remaining lease term | 1 year | |
Maximum | ||
Lessee Lease Description [Line Items] | ||
Operating leases, remaining lease term | 8 years | |
Option to extend, operating lease, term | 5 years |
Leases - Lease Expenses (Detail
Leases - Lease Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 7,181 | $ 6,096 |
Operating lease impairment charge | 370 | |
Variable lease cost | 701 | 363 |
Short-term lease cost | 120 | 158 |
Sublease income | (345) | (82) |
Total lease cost | $ 7,657 | $ 6,905 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 15,056 | |
2022 | 15,083 | |
2023 | 14,110 | |
2024 | 13,857 | |
2025 | 13,775 | |
Thereafter | 18,486 | |
Total lease payments | 90,367 | |
Less: interest | 22,411 | |
Present value of lease liabilities | $ 67,956 | $ 35,712 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Term and Discount Rate (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
Weighted average remaining lease term (years) | ||
Operating leases | 6 years 1 month 6 days | 7 years 2 months 12 days |
Weighted average discount rate | ||
Operating leases | 9.48% | 10.82% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Disclosures Related to Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 9,468 | $ 7,366 |
Right-of-use assets obtained in exchange for lease obligations | ||
Operating leases | $ 23,597 | $ 59 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt Instruments and Balances Outstanding (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Securitization facilities | $ 330,632 | $ 307,885 | |
Subtotal | 955,632 | 1,004,885 | |
Less: Long-term debt issuance costs | (9,171) | (13,704) | |
Total long-term debt | [1] | 946,461 | 991,181 |
Revolving Line of Credit | |||
Debt Instrument [Line Items] | |||
Revolving line of credit | 72,000 | ||
8.50% Senior Notes Due 2024 | |||
Debt Instrument [Line Items] | |||
Senior notes | 250,000 | 250,000 | |
8.50% Senior Notes Due 2025 | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 375,000 | $ 375,000 | |
[1] | Includes amounts in consolidated variable interest entities (“VIEs”) presented separately in the table below. |
Long-term Debt - Summary of L_2
Long-term Debt - Summary of Long-Term Debt Instruments and Balances Outstanding (Parenthetical) (Detail) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 19, 2018 | Sep. 01, 2017 | |
8.50% Senior Notes Due 2024 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 8.50% | 8.50% | 8.50% | |
Debt instrument, maturity period | 2024 | 2024 | ||
8.50% Senior Notes Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 8.50% | 8.50% | 8.50% | |
Debt instrument, maturity period | 2025 | 2025 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) | Feb. 25, 2021USD ($) | Dec. 24, 2020USD ($) | Dec. 23, 2020 | Dec. 18, 2020AUD ($) | Oct. 17, 2019USD ($) | Jul. 01, 2019USD ($) | Feb. 25, 2019USD ($) | Oct. 23, 2018USD ($) | Sep. 19, 2018USD ($) | Jul. 23, 2018USD ($) | Apr. 17, 2018USD ($) | Sep. 01, 2017USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 17, 2020AUD ($) | Nov. 15, 2019USD ($) | Oct. 31, 2018USD ($) |
Debt Instrument [Line Items] | |||||||||||||||||
Weighted average interest rates | 8.76% | 8.61% | |||||||||||||||
Securitization facilities | $ 330,632,000 | $ 307,885,000 | |||||||||||||||
8.50% Senior Unsecured Notes Due 2025 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 375,000,000 | ||||||||||||||||
Debt instrument, maturity date | Sep. 15, 2025 | ||||||||||||||||
Debt instrument, interest rate | 8.50% | 8.50% | 8.50% | ||||||||||||||
Debt instrument, payment terms | The 2025 Senior Notes bear interest at a rate of 8.50% annually on the principal amount payable semi-annually in arrears on March 15 and September 15 of each year, beginning on March 15, 2019. | ||||||||||||||||
Debt instrument, percentage of sale price | 100.00% | ||||||||||||||||
Notes redemption, description | The 2025 Senior Notes are redeemable at the Company’s option, in whole or in part, (i) at any time prior to September 15, 2021 at 100% of the aggregate principal amount of 2025 Senior Notes redeemed plus the applicable “make whole” premium specified in the indenture that governs the Company’s 2025 Senior Notes (the “2025 Senior Notes Indenture”), plus accrued and unpaid interest, if any, to the redemption date and (ii) at any time on or after September 15, 2021 at the premium, if any, specified in the 2025 Senior Notes Indenture that will decrease over time, plus accrued and unpaid interest, if any, to the redemption date. | ||||||||||||||||
Note redeem rate | 100.00% | ||||||||||||||||
Debt instrument, maturity period | 2025 | 2025 | |||||||||||||||
8.50% Senior Unsecured Notes Due 2025 | $375.0 million 8.50% Senior Unsecured Notes Redemption, Under Additional Option Available | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Note redeem rate | 108.50% | ||||||||||||||||
Percentage of notes principal redeemable | 40.00% | ||||||||||||||||
9.75% Senior Unsecured Notes Due 2021 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, interest rate | 9.75% | ||||||||||||||||
Debt instrument, repurchase of principal amount | $ 295,000,000 | ||||||||||||||||
Debt instrument, maturity period | 2021 | ||||||||||||||||
8.50% Senior Unsecured Notes Due 2024 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 250,000,000 | ||||||||||||||||
Debt instrument, maturity date | Sep. 1, 2024 | ||||||||||||||||
Debt instrument, interest rate | 8.50% | 8.50% | 8.50% | ||||||||||||||
Debt instrument, payment terms | The 2024 Senior Notes bear interest at a rate of 8.50% annually on the principal amount payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2018. | ||||||||||||||||
Debt instrument, percentage of sale price | 100.00% | ||||||||||||||||
Notes redemption, description | The 2024 Senior Notes are redeemable at the Company’s option, in whole or in part, (i) at any time prior to September 1, 2020 at 100% of the aggregate principal amount of 2024 Senior Notes redeemed plus the applicable “make whole” premium specified in the indenture that governs the Company’s 2024 Senior Notes (the “2024 Senior Notes Indenture”), plus accrued and unpaid interest, if any, to the redemption date and (ii) at any time on or after September 1, 2020 at the premium, if any, specified in the 2024 Senior Notes Indenture that will decrease over time, plus accrued and unpaid interest, if any, to the redemption date. | ||||||||||||||||
Note redeem rate | 100.00% | ||||||||||||||||
Debt instrument, maturity period | 2024 | 2024 | |||||||||||||||
8.50% Senior Unsecured Notes Due 2024 | $250.0 million 8.50% Senior Unsecured Notes Redemption, Under Additional Option Available | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Note redeem rate | 108.50% | ||||||||||||||||
Percentage of notes principal redeemable | 40.00% | ||||||||||||||||
2019-A Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, maturity date | Jun. 22, 2026 | ||||||||||||||||
Securitization facilities | $ 68,800,000 | $ 173,300,000 | |||||||||||||||
Sale of securitization receivables | $ 200,000,000 | ||||||||||||||||
Sale of additional securitization receivables | 22,200,000 | ||||||||||||||||
2019-A Notes | Class A Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 138,888,000 | ||||||||||||||||
Debt instrument, interest rate | 3.96% | ||||||||||||||||
2019-A Notes | Class B Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 44,445,000 | ||||||||||||||||
Debt instrument, interest rate | 6.17% | ||||||||||||||||
2019-A Notes | Class C Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 16,667,000 | ||||||||||||||||
Debt instrument, interest rate | 7.62% | ||||||||||||||||
2019-1 Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 50,000,000 | ||||||||||||||||
Debt instrument, maturity date | Feb. 25, 2022 | ||||||||||||||||
Securitization facilities | $ 30,000,000 | 12,800,000 | |||||||||||||||
Debt instrument maturity term | 3 years | ||||||||||||||||
2019-1 Facility | Subsequent Event | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt early termination penalties | $ 0 | ||||||||||||||||
2019-1 Facility | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, effective percentage | 9.75% | ||||||||||||||||
Debt instrument, frequency of periodic payment | monthly | ||||||||||||||||
2019-1 Facility | PCAM Credit II, LLC | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 75,000,000 | ||||||||||||||||
2019-1 Facility | Initial Term Note | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | 30,000,000 | ||||||||||||||||
2019-1 Facility | Initial Term Note | PCAM Credit II, LLC | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | 50,000,000 | ||||||||||||||||
2019-1 Facility | Revolving Note | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | 20,000,000 | ||||||||||||||||
2019-1 Facility | Revolving Note | PCAM Credit II, LLC | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 25,000,000 | ||||||||||||||||
2018-A Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, maturity date | May 20, 2026 | ||||||||||||||||
Securitization facilities | $ 18,100,000 | 41,800,000 | |||||||||||||||
2018-A Notes | Class A Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 95,000,000 | ||||||||||||||||
Debt instrument, interest rate | 4.20% | ||||||||||||||||
2018-A Notes | Class B Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 30,400,000 | ||||||||||||||||
Debt instrument, interest rate | 7.37% | ||||||||||||||||
2018-2 Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 150,000,000 | ||||||||||||||||
Debt instrument, maturity date | Oct. 23, 2022 | ||||||||||||||||
Securitization facilities | $ 49,500,000 | 80,000,000 | |||||||||||||||
2018-2 Facility | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, effective percentage | 3.75% | ||||||||||||||||
Debt instrument, frequency of periodic payment | monthly | ||||||||||||||||
2018-1 Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 150,000,000 | ||||||||||||||||
Debt instrument, maturity date | Jul. 22, 2023 | ||||||||||||||||
Securitization facilities | $ 39,900,000 | 0 | |||||||||||||||
2018-1 Facility | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, effective percentage | 4.00% | ||||||||||||||||
Debt instrument, frequency of periodic payment | monthly | ||||||||||||||||
ODAST 2018-1 Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 225,000,000 | ||||||||||||||||
ODAST 2018-1 Notes | Class A Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 177,500,000 | ||||||||||||||||
Debt instrument, borrowing rate | 3.50% | ||||||||||||||||
ODAST 2018-1 Notes | Class B Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 15,500,000 | ||||||||||||||||
Debt instrument, borrowing rate | 4.02% | ||||||||||||||||
ODAST 2018-1 Notes | Class C Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 20,000,000 | ||||||||||||||||
Debt instrument, borrowing rate | 4.52% | ||||||||||||||||
ODAST 2018-1 Notes | Class D Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 12,000,000 | ||||||||||||||||
Debt instrument, borrowing rate | 5.85% | ||||||||||||||||
ODAST 2019-1 Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Weighted average interest rates | 3.04% | ||||||||||||||||
Debt instrument, face amount | $ 125,000,000 | ||||||||||||||||
ODART Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, maturity date | May 31, 2021 | ||||||||||||||||
ODART Facility | On Deck Capital Incorporation | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, borrowing rate | 1.75% | ||||||||||||||||
Borrowing rate description | 1-month LIBOR plus 1.75%. | ||||||||||||||||
Revolving line of credit | $ 29,500,000 | ||||||||||||||||
Debt instrument, unamortized discount | $ 200,000 | ||||||||||||||||
RAOD Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, maturity date | Dec. 24, 2023 | ||||||||||||||||
RAOD Facility | On Deck Capital Incorporation | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, borrowing rate | 2.50% | 1.65% | |||||||||||||||
Borrowing rate description | LIBOR plus 1.65% to LIBOR plus 2.5%. | ||||||||||||||||
Revolving line of credit | $ 22,700,000 | ||||||||||||||||
Debt instrument, unamortized discount | $ 200,000 | ||||||||||||||||
Maximum borrowing capacity | $ 100,000,000 | ||||||||||||||||
Credit agreement, maturity date | Dec. 31, 2023 | Sep. 30, 2021 | |||||||||||||||
Debt instrument, revolving expiration date | Dec. 31, 2022 | Dec. 31, 2020 | |||||||||||||||
Credit agreement, advance rate | 76.00% | ||||||||||||||||
ODAF Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, maturity date | Aug. 8, 2022 | ||||||||||||||||
ODAF Facility | On Deck Capital Incorporation | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, borrowing rate | 3.00% | ||||||||||||||||
Borrowing rate description | 1-month LIBOR plus 3.0%. | ||||||||||||||||
Revolving line of credit | $ 52,500,000 | ||||||||||||||||
Debt instrument, unamortized discount | 300,000 | ||||||||||||||||
Maximum borrowing capacity | $ 175,000,000 | ||||||||||||||||
Credit agreement, maturity date | Aug. 8, 2022 | ||||||||||||||||
Debt instrument, revolving expiration date | Aug. 6, 2021 | ||||||||||||||||
Line of credit facility, advance rate | 70.00% | ||||||||||||||||
PORT Facility | On Deck Capital Incorporation | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Securitization facilities | $ 0 | ||||||||||||||||
Maximum borrowing capacity | 200,000 | ||||||||||||||||
LAOD Facility | On Deck Capital Incorporation | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 150,000,000 | ||||||||||||||||
Debt instrument, borrowing rate | 1.75% | ||||||||||||||||
Borrowing rate description | 1-month LIBOR plus 1.75%. | ||||||||||||||||
ODFT Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, maturity date | Dec. 31, 2021 | ||||||||||||||||
ODFT Facility | On Deck Capital Incorporation | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Revolving line of credit | $ 19,600,000 | ||||||||||||||||
Debt instrument, unamortized discount | 300,000 | ||||||||||||||||
Credit agreement, maturity date | Dec. 31, 2021 | ||||||||||||||||
Debt instrument, revolving expiration date | Jun. 30, 2021 | ||||||||||||||||
ODFT Facility | Mezzanine | On Deck Capital Incorporation | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maximum borrowing capacity | $ 18,000,000 | ||||||||||||||||
ODFT Facility | Class A Borrowing Rate | On Deck Capital Incorporation | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, borrowing rate | 3.75% | ||||||||||||||||
Borrowing rate description | 1-month BBSW plus 3.75% | ||||||||||||||||
Maximum borrowing capacity | $ 60,000,000 | $ 150,000,000 | |||||||||||||||
Line of credit facility, advance rate | 90.00% | ||||||||||||||||
ODFT Facility | Class B Borrowing Rate | On Deck Capital Incorporation | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, borrowing rate | 7.50% | ||||||||||||||||
Borrowing rate description | 1-month BBSW plus 7.5% | ||||||||||||||||
Revolving Credit Facility Due 2022 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Revolving line of credit | $ 0 | 72,000,000 | |||||||||||||||
Maximum borrowing capacity | $ 125,000,000 | ||||||||||||||||
Credit agreement, maturity date | Jun. 30, 2022 | May 1, 2020 | |||||||||||||||
Credit agreement, advance rate | 65.00% | 53.00% | |||||||||||||||
Credit agreement, description | Additionally, on July 1, 2019 the Credit Agreement was amended to, amongst other changes, extend the maturity date to June 30, 2022 from May 1, 2020 and increase the advance rate to 65% from 53%. | ||||||||||||||||
Revolving Credit Facility Due 2022 | Minimum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit facility, advance rate | 0.30% | ||||||||||||||||
Revolving Credit Facility Due 2022 | Maximum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit facility, advance rate | 0.50% | ||||||||||||||||
Revolving Credit Facility Due 2022 | Letters of Credit | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maximum borrowing capacity | $ 20,000,000 | ||||||||||||||||
Borrowings outstanding under credit agreement | $ 1,000,000 | $ 1,200,000 | |||||||||||||||
Revolving Credit Facility Due 2022 | Prime Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, borrowing rate | 1.00% |
Long Term Debt - Schedule of Ma
Long Term Debt - Schedule of Maturities of Long-term Debt (Detail) $ in Thousands | Dec. 31, 2020USD ($) | |
Debt Disclosure [Abstract] | ||
2025 | $ 250,000 | |
Thereafter | 375,000 | |
Securitization | 331,643 | [1] |
Total | $ 956,643 | |
[1] | The 2019-A Notes mature on June 22, 2026, the 2019-1 Facility matures on February 25, 2022, the 2018-A Notes mature on May 20, 2026, the 2018-2 Facility matures on October 23, 2022, the 2018-1 Facility matures on July 22, 2023, the RAOD Facility matures on December 24, 2023, the ODART Facility matures on May 31, 2021, the ODAF Facility matures on August 8, 2022 and the ODFT Facility matures on December 31, 2021. The ODART Facility was repaid in full and terminated on February 19, 2021, and the 2019-1 Facility was repaid in full and terminated on February 25, 2021. |
Long Term Debt - Schedule of _2
Long Term Debt - Schedule of Maturities of Long-term Debt (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
2019-A Notes | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | Jun. 22, 2026 |
2019-1 Facility | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | Feb. 25, 2022 |
2018-A Notes | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | May 20, 2026 |
2018-2 Facility | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | Oct. 23, 2022 |
2018-1 Facility | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | Jul. 22, 2023 |
RAOD Facility | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | Dec. 24, 2023 |
ODART Facility | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | May 31, 2021 |
ODAF Facility | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | Aug. 8, 2022 |
ODFT Facility | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | Dec. 31, 2021 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Loans and finance receivables, net | $ 10,775 | $ 5,627 |
Compensation and benefits | 7,914 | 4,699 |
Translation adjustments | 2,132 | 839 |
Accrued rent and deferred finish out allowance | 15,661 | 8,411 |
Foreign net operating loss carryforward | 9,588 | 5,127 |
U.S. net operating loss carryforward | 4,689 | |
Other | 3,212 | 2,335 |
Total deferred tax assets | 53,971 | 27,038 |
Deferred tax liabilities: | ||
Amortizable intangible assets | 62,286 | 51,389 |
Property and equipment | 15,963 | 11,775 |
Operating lease right-of-use asset | 9,057 | 4,613 |
Other | 2,625 | 2,567 |
Total deferred tax liabilities | 89,931 | 70,344 |
Net deferred tax liabilities before valuation allowance | (35,960) | (43,306) |
Valuation allowance | (12,169) | (5,377) |
Net deferred tax liabilities | $ (48,129) | $ (48,683) |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income before income taxes: | |||
Domestic | $ 435,420 | $ 170,069 | $ 68,873 |
Income before Income Taxes | 435,420 | 170,069 | 68,873 |
Current provision (benefit): | |||
Federal | 39,066 | 24,995 | (16,464) |
International | 42 | ||
State and local | 6,399 | 6,151 | (1,284) |
Total current provision (benefit) | 45,465 | 31,146 | (17,706) |
Deferred provision: | |||
Federal | 8,467 | 7,626 | 22,735 |
State and local | 3,259 | 3,281 | 272 |
Total deferred provision | 11,726 | 10,907 | 23,007 |
Total provision for income taxes | $ 57,191 | $ 42,053 | $ 5,301 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | ||||
Federal statutory rate | 21.00% | 21.00% | 21.00% | |
Gross net operating loss carryforwards | $ 12,500 | |||
Net operating loss carryforwards, tax-effected valuation allowance | 12,169 | $ 5,377 | $ 5,130 | $ 2,650 |
Potential benefits that would affect effective tax rate | 10,600 | 13,900 | 13,300 | |
Unrecognized tax benefits for temporary items | 28,400 | 39,700 | 27,100 | |
Accrued interest and penalties related to unrecognized tax benefits | $ 1,700 | 2,000 | 0 | |
Enova | ||||
Income Tax Contingency [Line Items] | ||||
Ownership percentage of controlling interest | 55.00% | |||
Foreign | Brazilian Operations | ||||
Income Tax Contingency [Line Items] | ||||
Gross net operating loss carryforwards | $ 19,500 | 24,400 | 20,600 | |
Foreign | OnDeck Australia | ||||
Income Tax Contingency [Line Items] | ||||
Gross net operating loss carryforwards | $ 18,300 | |||
State Local And Foreign Jurisdiction Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Statute of limitation period | 3 years | |||
State | ||||
Income Tax Contingency [Line Items] | ||||
Gross net operating loss carryforwards | $ 35,200 | $ 16,300 | $ 13,200 | |
Net operating loss carryforwards, tax-effected valuation allowance | 1,000 | |||
Annual Section 382 Limitation | ||||
Income Tax Contingency [Line Items] | ||||
Net operating loss carryforwards, tax-effected valuation allowance | 700 | |||
Operating loss carry forwards limitations on use amount | $ 1,000 | |||
Earliest Tax Year | State | ||||
Income Tax Contingency [Line Items] | ||||
Net operating loss carryforwards, expiration year | 2023 | 2023 | ||
Latest Tax Year | State | ||||
Income Tax Contingency [Line Items] | ||||
Net operating loss carryforwards, expiration year | 2038 | 2038 |
Income Taxes - Components of Ef
Income Taxes - Components of Effective Tax Rate on Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Tax provision computed at the federal statutory income tax rate | $ 91,438 | $ 35,714 | $ 14,463 |
State and local income taxes, net of federal tax benefits | 8,422 | 5,254 | 2,660 |
Share-based compensation | (91) | (2,015) | (1,790) |
Bargain purchase gain | (34,440) | ||
Deferred tax adjustment from TCJA | (10,284) | ||
162(m) limit on deductibility of executive compensation | 1,834 | 742 | 1,547 |
State rate adjustment | 1,245 | 2,210 | |
Release of uncertain tax position | (11,604) | ||
Other | 387 | 148 | (1,295) |
Total provision for income taxes | $ 57,191 | $ 42,053 | $ 5,301 |
Effective tax rate | 13.10% | 24.70% | 7.70% |
Income Taxes - Summary of Valua
Income Taxes - Summary of Valuation Allowance Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of period | $ 5,377 | $ 5,130 | $ 2,650 |
Additions | 6,792 | 247 | 2,480 |
Balance at end of period | $ 12,169 | $ 5,377 | $ 5,130 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Activity Related to Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of period | $ 53,613 | $ 40,340 | $ 727 |
Additions based on tax positions related to the current year | 15,085 | 8,248 | |
Reductions based on tax positions related to the current year | (4,114) | ||
Additions for tax positions of prior years | 2,033 | 31,365 | |
Reductions for tax positions of prior years | (7,351) | (1,812) | |
Additions for opening tax positions of acquired entity | 6,460 | ||
Reductions due to settlements with the taxing authorities | (11,604) | ||
Balance at end of period | $ 39,037 | $ 53,613 | $ 40,340 |
Commitments and Contingencies -
Commitments and Contingencies - Additional information (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments And Contingencies Disclosure [Abstract] | ||
Active consumer loans owned by third-party lenders | $ 10.2 | $ 27.6 |
Accrual for losses on consumer loan guaranty obligations | 10.3 | |
Accrual for third party lender owned consumer loans, outstanding principle amount | $ 8.8 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2015 | |
SERP | ||||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | ||||
Compensation expense | $ 0.6 | $ 0.5 | $ 0.5 | |
OnDeck 401(k) Plan | ||||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | ||||
Percentage of matching contribution by employer | 50.00% | |||
Description of employer matching contributions | The Company makes matching contributions of 50% of up to the first 6% of pay that each employee contributes to the OnDeck 401(k) Plan. The Company’s matching contributions fully vest after one year of service with the Company. | |||
OnDeck 401(k) Plan | Maximum | ||||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | ||||
Percentage of matching contribution by employee | 6.00% | |||
401(k) Savings Plan | Nonqualified Savings Plan | ||||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | ||||
Percentage of matching contribution by employer | 100.00% | |||
Percentage of matching contribution by employee | 1.00% | |||
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% | |||
Compensation expense for combined contributions | $ 3.3 | $ 2.5 | $ 2.5 |
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, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Prepaid expenses and other assets | $ 3,972 | $ 2,867 |
Accounts payable and accrued expenses | $ 4,543 | $ 3,397 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Oct. 13, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock share received value | $ 56,408 | $ 33,776 | $ 17,314 | |
Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock shares received | 135,916 | |||
Common stock share received value | $ 2,700 | |||
Restricted Stock Units | Officers and Certain Employees | ||||
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 | 12,500,000 | |||
Shares available for future grants | 3,769,244 | |||
Enova LTIP | Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Compensation expense | $ 13,700 | 8,400 | 8,800 | |
Compensation expenses net of tax | 10,300 | 6,400 | 6,700 | |
Unrecognized compensation cost | $ 25,100 | |||
Unrecognized compensation expense recognition period | 2 years 4 months 24 days | |||
Outstanding RSUs aggregate intrinsic value | $ 43,300 | |||
Enova LTIP | Stock options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Compensation expense | 4,300 | 3,700 | 2,900 | |
Compensation expenses net of tax | 3,200 | $ 2,800 | $ 2,200 | |
Unrecognized compensation cost | $ 5,500 | |||
Unrecognized compensation expense recognition period | 1 year 8 months 12 days | |||
Risk-free interest rate | 1.30% | |||
Expected life (years) | 4 years 6 months | |||
Expected volatility | 52.40% | |||
Expected dividend yield | 0.00% | |||
Weighted average fair value of options granted | $ 8.29 | |||
Outstanding stock options aggregate intrinsic value | $ 12,300 | |||
Exercisable stock options intrinsic value | $ 9,700 | |||
2014 Equity Incentive Plan | On Deck Capital, Inc. | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares authorized | 419,291,000 | |||
2014 Equity Incentive Plan | On Deck Capital, Inc. | Inducement Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of additional shares authorized | 67,757,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of RSU Activity (Detail) - Enova LTIP - Restricted Stock Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Outstanding at beginning of year, Units | 1,117,766 | 1,242,422 | 1,425,883 |
Units granted, Units | 1,294,509 | 616,010 | 639,109 |
Shares issued, Units | (588,924) | (545,592) | (604,116) |
Units forfeited, Units | (73,258) | (195,074) | (218,454) |
Outstanding at end of year, Units | 1,750,093 | 1,117,766 | 1,242,422 |
Outstanding at beginning of year, Weighted Average Fair Value at Date of Grant | $ 21.09 | $ 16.34 | $ 12 |
Units granted, Weighted Average Fair Value at Date of Grant | 18.89 | 24.14 | 21.74 |
Shares issued, Weighted Average Fair Value at Date of Grant | 19.61 | 14.23 | 11.90 |
Units forfeited, Weighted Average Fair Value at Date of Grant | 20.56 | 19.61 | 16.12 |
Outstanding at end of year, Weighted Average Fair Value at Date of Grant | $ 19.98 | $ 21.09 | $ 16.34 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - Enova LTIP - Stock options - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Outstanding at beginning of year, Units | 2,084,297 | 2,129,837 | 2,054,092 |
Options granted, Units | 576,223 | 513,583 | 481,003 |
Options exercised, Units | (16,625) | (362,798) | (319,764) |
Options forfeited, Units | (21,939) | (196,325) | (85,494) |
Outstanding at end of year, Units | 2,621,956 | 2,084,297 | 2,129,837 |
Exercisable options at end of year, Units | 1,641,133 | 1,279,794 | 1,246,301 |
Outstanding at beginning of year, Weighted Average Exercise Price | $ 19.35 | $ 17.32 | $ 16.92 |
Options granted, Weighted Average Exercise Price | 22.81 | 21.34 | 21.54 |
Options exercised, Weighted Average Exercise Price | 11.40 | 9.80 | 21.07 |
Options forfeited, Weighted Average Exercise Price | 16.79 | 20.10 | 17.42 |
Outstanding at end of year, Weighted Average Exercise Price | 20.18 | 19.35 | 17.32 |
Exercisable options at end of year, Weighted Average Exercise Price | $ 18.95 | $ 18.73 | $ 17.27 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Due from affiliate balance | $ 1.2 | ||
Marketing Agency | |||
Related Party Transaction [Line Items] | |||
Amount expenses incurred to related party | 6 | $ 15.8 | $ 11.4 |
Accounts Payable and Accrued Expenses | Marketing Agency | |||
Related Party Transaction [Line Items] | |||
Due to related party | $ 0.6 | $ 4.6 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow Information - Schedule of Cash and Non-Cash Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash paid during the year for: | |||
Interest | $ 74,901 | $ 70,250 | $ 68,350 |
Income taxes paid (recovered) | 27,479 | (39,392) | 9,581 |
Non-cash investing and financing activities: | |||
Loans and finance receivables renewed | 95,080 | $ 146,039 | $ 98,043 |
Fair value of acquired assets | 772,376 | ||
Liabilities assumed in acquisitions | 487,458 | ||
Issuance of common stock related to the acquisition of OnDeck | $ (105,960) |
Operating Segment Information -
Operating Segment Information - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segment | 1 | |
Number of operating segment | 1 | |
Property and equipment, net | $ | $ 79,417 | $ 54,540 |
Operating Segment Information_2
Operating Segment Information - Summary of Company's Revenue by Geographical Region (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue [Abstract] | |||
Revenue | $ 1,083,710 | $ 1,174,757 | $ 972,621 |
United States | |||
Revenue [Abstract] | |||
Revenue | 1,071,694 | 1,153,308 | 946,515 |
Other International Countries | |||
Revenue [Abstract] | |||
Revenue | $ 12,016 | $ 21,449 | $ 26,106 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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 |
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 | |
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 | |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities fair value recurring | $ 0 | 0 |
Fair Value Measurements Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities fair value recurring | 0 | 0 |
Assets fair value non-recurring | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets Measured on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Consumer loans and finance receivables | [1],[2] | $ 625,219 | |
Small business loans and finance receivables | [1],[2] | 616,287 | |
Non-qualified savings plan assets | [3] | 3,972 | $ 2,867 |
Investment in trading security | [4] | 19,273 | 11,449 |
Total | 1,264,751 | 14,316 | |
Level 1 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Non-qualified savings plan assets | [3] | 3,972 | 2,867 |
Investment in trading security | [4] | 19,273 | 11,449 |
Total | 23,245 | $ 14,316 | |
Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Consumer loans and finance receivables | [1],[2] | 625,219 | |
Small business loans and finance receivables | [1],[2] | 616,287 | |
Total | $ 1,241,506 | ||
[1] | Consumer and small business loans and finance receivables are included in “Loans and finance receivables at fair value” in the consolidated balance sheets subsequent to December 31, 2019. | ||
[2] | Consumer loans and finance receivables and small business loans and finance receivables include $277.6 million and $251.3 million in assets of consolidated VIEs, respectively, as of December 31, 2020. | ||
[3] | The non-qualified savings plan assets are included in “Other receivables and prepaid expenses” in the Company’s consolidated balance sheets and have an offsetting liability of equal amount, which is included in “Accounts payable and accrued expenses” in the Company’s consolidated balance sheets. | ||
[4] | Investment in trading security is included in “Other assets” in the Company’s consolidated balance sheets. |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured on Recurring Basis (Parenthetical) (Detail) - Variable Interest Entity, Primary Beneficiary - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Consumer loans and finance receivables | $ 277.6 | $ 420.7 |
Small business loans and finance receivables | $ 251.3 |
Fair Value Measurements - Fin_2
Fair Value Measurements - Financial Assets and Liabilities Not Measured at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial liabilities: | |||||
Liability for estimated losses on consumer loans guaranteed by the Company | $ 1,511 | $ 2,166 | $ 2,258 | ||
Carrying Value | |||||
Financial assets: | |||||
Cash and cash equivalents | $ 297,273 | 35,895 | |||
Restricted cash | [1] | 71,927 | 45,069 | ||
Consumer loans and finance receivables | [2],[3] | 891,783 | |||
Small business loans and finance receivables | [2] | 170,867 | |||
Investment in unconsolidated investee | [4] | 6,918 | 6,703 | ||
Total | 376,118 | 1,150,317 | |||
Financial liabilities: | |||||
Liability for estimated losses on consumer loans guaranteed by the Company | 1,511 | ||||
Revolving line of credit | 72,000 | ||||
Securitization facilities | 330,632 | 307,885 | |||
Total | 955,632 | 1,006,396 | |||
Carrying Value | 8.50% Senior Notes Due 2024 | |||||
Financial liabilities: | |||||
Senior notes | 250,000 | 250,000 | |||
Carrying Value | 8.50% Senior Notes Due 2025 | |||||
Financial liabilities: | |||||
Senior notes | 375,000 | 375,000 | |||
Level 1 | Estimated Fair Value | |||||
Financial assets: | |||||
Cash and cash equivalents | 297,273 | 35,895 | |||
Restricted cash | [1] | 71,927 | 45,069 | ||
Total | 369,200 | 80,964 | |||
Level 2 | Estimated Fair Value | |||||
Financial liabilities: | |||||
Securitization facilities | 333,532 | 308,513 | |||
Total | 948,982 | 902,954 | |||
Level 2 | Estimated Fair Value | 8.50% Senior Notes Due 2024 | |||||
Financial liabilities: | |||||
Senior notes | 247,680 | 238,750 | |||
Level 2 | Estimated Fair Value | 8.50% Senior Notes Due 2025 | |||||
Financial liabilities: | |||||
Senior notes | 367,770 | 355,691 | |||
Level 3 | Estimated Fair Value | |||||
Financial assets: | |||||
Consumer loans and finance receivables | [2],[3] | 1,015,798 | |||
Small business loans and finance receivables | [2] | 171,785 | |||
Investment in unconsolidated investee | [4] | 6,918 | 6,703 | ||
Total | $ 6,918 | 1,194,286 | |||
Financial liabilities: | |||||
Liability for estimated losses on consumer loans guaranteed by the Company | 1,511 | ||||
Revolving line of credit | 72,000 | ||||
Total | $ 73,511 | ||||
[1] | Restricted cash includes $64.8 million and $42.4 million in assets of consolidated VIEs as of December 31, 2020 and 2019, respectively. | ||||
[2] | Consumer and small business loans and finance receivables are included in “Loans and finance receivables, net” in the consolidated balance sheets prior to January 1, 2020. | ||||
[3] | Consumer loans and finance receivables includes $420.7 million in net assets of consolidated VIEs as of December 31, 2019. | ||||
[4] | Investment in unconsolidated investee is included in “Other assets” in the consolidated balance sheets. |
Fair Value Measurements - Fin_3
Fair Value Measurements - Financial Assets and Liabilities Not Measured at Fair Value (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 19, 2018 | Sep. 01, 2017 | |
Variable Interest Entity, Primary Beneficiary | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Restricted cash | $ 64.8 | $ 42.4 | ||
Consumer loans and finance receivables | $ 277.6 | $ 420.7 | ||
8.50% Senior Notes Due 2024 | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Debt instrument, interest rate | 8.50% | 8.50% | 8.50% | |
Debt instrument, maturity period | 2024 | 2024 | ||
8.50% Senior Notes Due 2025 | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Debt instrument, interest rate | 8.50% | 8.50% | 8.50% | |
Debt instrument, maturity period | 2025 | 2025 |