Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 12, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | FIRSTCASH, INC | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Entity Central Index Key | 840,489 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 46,554,838 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Public Float | $ 2,406,000,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 114,423 | $ 89,955 |
Fees and service charges receivable | 42,736 | 41,013 |
Pawn loans | 344,748 | 350,506 |
Consumer loans, net | 23,522 | 29,204 |
Inventories | 276,771 | 330,683 |
Income taxes receivable | 19,761 | 25,510 |
Prepaid expenses and other current assets | 20,236 | 25,264 |
Total current assets | 842,197 | 892,135 |
Property and equipment, net | 230,341 | 236,057 |
Goodwill | 831,145 | 831,151 |
Intangible assets, net | 93,819 | 104,474 |
Other assets | 54,045 | 71,679 |
Deferred tax assets | 11,237 | 9,707 |
Total assets | 2,062,784 | 2,145,203 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable and accrued liabilities | 84,331 | 109,354 |
Customer deposits | 32,019 | 33,536 |
Income taxes payable | 4,221 | 738 |
Total current liabilities | 120,571 | 143,628 |
Revolving unsecured credit facility | 107,000 | 260,000 |
Senior unsecured notes | 295,243 | 196,545 |
Deferred tax liabilities | 47,037 | 61,275 |
Other liabilities | 17,600 | 33,769 |
Total liabilities | 587,451 | 695,217 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity: | ||
Preferred stock; $0.01 par value; 10,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock; $0.01 par value; 90,000 shares authorized; 49,276 and 40,288 shares issued, respectively; 48,507 and 28,236 shares outstanding, respectively | 493 | 493 |
Additional paid-in capital | 1,220,356 | 1,217,969 |
Retained earnings | 494,457 | 387,401 |
Accumulated other comprehensive loss | (111,877) | (119,806) |
Common stock held in treasury, 2,362 and 769 shares at cost, respectively | (128,096) | (36,071) |
Total stockholders’ equity | 1,475,333 | 1,449,986 |
Total liabilities and stockholders’ equity | $ 2,062,784 | $ 2,145,203 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 90,000,000 | 90,000,000 |
Common stock, issued | 49,276,000 | 49,276,000 |
Common stock, outstanding | 46,914,000 | 48,507,000 |
Treasury stock | 2,362,000 | 769,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | |||
Retail merchandise sales | $ 1,051,099,000 | $ 669,131,000 | $ 449,296,000 |
Pawn loan fees | 510,905,000 | 312,757,000 | 195,448,000 |
Wholesale scrap jewelry sales | 140,842,000 | 62,638,000 | 32,055,000 |
Consumer loan and credit services fees | 76,976,000 | 43,851,000 | 27,803,000 |
Total revenue | 1,779,822,000 | 1,088,377,000 | 704,602,000 |
Cost of revenue: | |||
Cost of retail merchandise sold | 679,703,000 | 418,556,000 | 278,631,000 |
Cost of wholesale scrap jewelry sold | 132,794,000 | 53,025,000 | 27,628,000 |
Consumer loan and credit services loss provision | 19,819,000 | 11,993,000 | 7,159,000 |
Total cost of revenue | 832,316,000 | 483,574,000 | 313,418,000 |
Net revenue | 947,506,000 | 604,803,000 | 391,184,000 |
Expenses and other income: | |||
Store operating expenses | 551,874,000 | 328,014,000 | 207,572,000 |
Administrative expenses | 122,473,000 | 96,537,000 | 51,883,000 |
Depreciation and amortization | 55,233,000 | 31,865,000 | 17,939,000 |
Interest expense | 24,035,000 | 20,320,000 | 16,887,000 |
Interest income | (1,597,000) | (751,000) | (1,566,000) |
Merger and other acquisition expenses | 9,062,000 | 36,670,000 | 2,875,000 |
Gain (Loss) on Extinguishment of Debt | 14,114,000 | 0 | 0 |
Net gain on sale of common stock of Enova | 0 | (1,299,000) | 0 |
Goodwill impairment - U.S. consumer loan operations | 0 | 0 | 7,913,000 |
Total expenses and other income | 775,194,000 | 511,356,000 | 303,503,000 |
Income before income taxes | 172,312,000 | 93,447,000 | 87,681,000 |
Provision for income taxes | 28,420,000 | 33,320,000 | 26,971,000 |
Net income | $ 143,892,000 | $ 60,127,000 | $ 60,710,000 |
Net income per share: | |||
Income from continuing operations (basic) (in dollars per share) | $ 3.01 | $ 1.72 | $ 2.16 |
Loss from discontinued operations (basic) (in dollars per share) | 3 | 1.72 | 2.14 |
Diluted income per share: | |||
Dividends declared per common share | $ 0.770 | $ 0.565 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 143,892 | $ 60,127 | $ 60,710 |
Other comprehensive income (loss): | |||
Currency translation adjustment | 7,929 | (41,396) | (38,132) |
Comprehensive income | $ 151,821 | $ 18,731 | $ 22,578 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Common Stock Held in Treasury |
Balance at beginning of period (shares) at Dec. 31, 2014 | 0 | 39,708 | 11,200 | ||||
Balance at beginning of period (value) at Dec. 31, 2014 | $ 434,441 | $ 0 | $ 397 | $ 188,062 | $ 582,894 | $ (40,278) | $ (296,634) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares issued under share-based compensation (shares) | 5 | ||||||
Shares issued under share-based compensation (value) | 0 | $ 0 | |||||
Shares issued upon merger with Cash America (value) | 0 | ||||||
Exercise of stock options, net of shares net-settled (shares) | 575 | ||||||
Exercise of stock options, net of shares net-settled (value) | 8,782 | $ 6 | 8,776 | ||||
Income tax benefit from exercise of stock options and warrants (value) | 5,126 | 5,126 | |||||
Share-based compensation expense (value) | 429 | 429 | |||||
Net income | 60,710 | 60,710 | |||||
Currency translation adjustment | (38,132) | (38,132) | |||||
Repurchases of treasury stock (shares) | 852 | ||||||
Repurchases of treasury stock (value) | (39,974) | $ (39,974) | |||||
Balance at end of period (shares) at Dec. 31, 2015 | 0 | 40,288 | 12,052 | ||||
Balance at end of period (value) at Dec. 31, 2015 | 431,382 | $ 0 | $ 403 | 202,393 | 643,604 | (78,410) | $ (336,608) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares issued under share-based compensation (shares) | 7 | 83 | |||||
Shares issued under share-based compensation (value) | 0 | $ 0 | (3,903) | $ 3,903 | |||
Shares issued upon merger with Cash America (shares) | 20,181 | ||||||
Shares issued upon merger with Cash America (value) | 1,015,507 | $ 202 | 1,015,305 | ||||
Share-based compensation expense (value) | 4,174 | 4,174 | |||||
Net income | 60,127 | 60,127 | |||||
Dividends paid | (19,808) | (19,808) | |||||
Currency translation adjustment | (41,396) | (41,396) | |||||
Retirement of treasury stock (shares) | (11,200) | (11,200) | |||||
Retirement of treasury stock (value) | 0 | $ (112) | (296,522) | $ 296,634 | |||
Balance at end of period (shares) at Dec. 31, 2016 | 0 | 49,276 | 769 | ||||
Balance at end of period (value) at Dec. 31, 2016 | 1,449,986 | $ 0 | $ 493 | 1,217,969 | 387,401 | (119,806) | $ (36,071) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares issued under share-based compensation (shares) | 10 | ||||||
Shares issued under share-based compensation (value) | 0 | (440) | $ 440 | ||||
Shares issued upon merger with Cash America (value) | 0 | ||||||
Exercise of stock options, net of shares net-settled (shares) | 13 | ||||||
Exercise of stock options, net of shares net-settled (value) | 307 | (242) | $ 549 | ||||
Share-based compensation expense (value) | 3,069 | 3,069 | |||||
Net income | 143,892 | 143,892 | |||||
Dividends paid | (36,836) | (36,836) | |||||
Currency translation adjustment | 7,929 | 7,929 | |||||
Repurchases of treasury stock (shares) | 1,616 | ||||||
Repurchases of treasury stock (value) | (93,014) | $ (93,014) | |||||
Balance at end of period (shares) at Dec. 31, 2017 | 0 | 49,276 | 2,362 | ||||
Balance at end of period (value) at Dec. 31, 2017 | $ 1,475,333 | $ 0 | $ 493 | $ 1,220,356 | $ 494,457 | $ (111,877) | $ (128,096) |
CONSOLIDATED STATEMENTS OF STO7
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) shares in Thousands | 12 Months Ended |
Dec. 31, 2015shares | |
Statement of Stockholders' Equity [Abstract] | |
Number of shares net-settled (shares) | 80 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Cash flow from operating activities: | |||
Net income | $ 143,892,000 | $ 60,127,000 | $ 60,710,000 |
Adjustments to reconcile net income to net cash flow provided by operating activities: | |||
Non-cash portion of credit loss provision | 12,727,000 | 5,970,000 | 761,000 |
Share-based compensation expense | 3,069,000 | 4,174,000 | 429,000 |
Net gain on sale of common stock of Enova | 0 | (1,299,000) | 0 |
Depreciation and amortization expense | 55,233,000 | 31,865,000 | 17,939,000 |
Amortization of debt issuance costs | 1,838,000 | 1,427,000 | 943,000 |
Amortization of favorable/(unfavorable) lease intangibles, net | (976,000) | (232,000) | 0 |
Gain (Loss) on Extinguishment of Debt | 14,114,000 | 0 | 0 |
Goodwill impairment - U.S. consumer loan operations | 0 | 0 | 7,913,000 |
Deferred income taxes, net | (14,497,000) | 11,912,000 | (430,000) |
Changes in operating assets and liabilities, net of business combinations: | |||
Fees and service charges receivable | (1,411,000) | 1,776,000 | (100,000) |
Inventories | 16,193,000 | (4,619,000) | (1,404,000) |
Prepaid expenses and other assets | 13,702,000 | 4,878,000 | 490,000 |
Accounts payable, accrued expenses and other liabilities | (35,135,000) | (16,335,000) | 4,350,000 |
Income taxes | 11,608,000 | (2,790,000) | 1,148,000 |
Net cash flow provided by operating activities | 220,357,000 | 96,854,000 | 92,749,000 |
Cash flow from investing activities: | |||
Loan receivables, net of cash repayments | 40,735,000 | (16,072,000) | (3,716,000) |
Purchases of property and equipment | (37,135,000) | (33,863,000) | (21,073,000) |
Portion of aggregate merger consideration paid in cash, net of cash acquired | 0 | (8,250,000) | 0 |
Acquisitions of pawn stores, net of cash acquired | 2,203,000 | 29,866,000 | 46,887,000 |
Proceeds from sale of common stock of Enova | 0 | 62,084,000 | 0 |
Net cash flow provided by (used in) investing activities | 1,397,000 | (25,967,000) | (71,676,000) |
Cash flow from financing activities: | |||
Borrowings from revolving credit facility | 206,000,000 | 400,000,000 | 120,000,000 |
Repayments of revolving credit facility | (359,000,000) | (198,000,000) | (84,400,000) |
Repayments of debt assumed with merger and other acquisitions | 0 | (238,532,000) | 0 |
Issuance of senior unsecured notes | 300,000,000 | 0 | 0 |
Repurchase/redemption of senior unsecured notes | (200,000,000) | 0 | 0 |
Repurchase/redemption premiums on senior unsecured notes | (10,895,000) | 0 | 0 |
Debt issuance costs paid | (5,342,000) | (2,373,000) | (407,000) |
Purchases of treasury stock | (91,740,000) | 0 | (39,974,000) |
Proceeds from exercise of share-based compensation awards | 307,000 | 0 | 9,895,000 |
Income tax benefit from exercise of stock options | 0 | 0 | 5,126,000 |
Dividends paid | (36,836,000) | (19,808,000) | 0 |
Payment of minimum withholding taxes on net share settlement of stock options exercised | 0 | 0 | (1,113,000) |
Net cash flow provided by (used in) financing activities | (197,506,000) | (58,713,000) | 9,127,000 |
Effect of exchange rates on cash | 220,000 | (9,173,000) | (11,238,000) |
Change in cash and cash equivalents | 24,468,000 | 3,001,000 | 18,962,000 |
Cash and cash equivalents at beginning of the year | 89,955,000 | 86,954,000 | 67,992,000 |
Cash and cash equivalents at end of the year | 114,423,000 | 89,955,000 | 86,954,000 |
Cash paid during the period for: | |||
Interest | 24,301,000 | 18,663,000 | 15,464,000 |
Income taxes | 29,813,000 | 21,535,000 | 21,579,000 |
Supplemental disclosure of non-cash investing and financing activity: | |||
Non-cash transactions in connection with pawn loans settled through forfeitures of collateral transferred to inventories | 436,705,000 | 265,060,000 | 186,389,000 |
Notes and other amounts payable in connection with pawn acquisitions | 0 | 2,554,000 | 575,000 |
Issuance of common stock associated with the Merger | 0 | 1,015,507,000 | 0 |
Revolving unsecured credit facilities assumed as a result of the Merger | 0 | (232,000,000) | 0 |
Notes payable assumed in acquisition | $ 0 | $ (6,630,000) | $ 0 |
Organization and Nature of the
Organization and Nature of the Company | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of the Company | ORGANIZATION AND NATURE OF THE COMPANY FirstCash, Inc., (together with its wholly-owned subsidiaries, the “Company”) is incorporated in the state of Delaware. The Company is engaged primarily in the operation of pawn stores, which lend money on the collateral of pledged personal property and retail previously owned merchandise acquired through pawn forfeitures and purchases directly from the general public. The Company also retails limited quantities of new or refurbished merchandise obtained directly from wholesalers and manufacturers. In addition to making short-term secured pawn loans, certain of the Company’s pawn stores offer short-term consumer loans and credit services. The Company also operates consumer loan stores that provide consumer loans, credit services and check cashing services, although beginning in fiscal 2018, the Company will no longer offer fee-based check cashing services in its non-franchised stores. As of December 31, 2017 , the Company owned and operated 2,039 pawn stores and 72 consumer loan stores in 26 U.S. states (including the District of Columbia), 32 states in Mexico and the countries of Guatemala and El Salvador. On September 1, 2016, the Company completed its merger with Cash America International, Inc. (“Cash America”), whereby Cash America merged with and into a wholly owned subsidiary of the Company (the “Merger”). The accompanying audited consolidated results of operations for the year ended December 31, 2017 includes the results of operations for Cash America, while the comparable prior-year period includes the results of operations for Cash America for the period September 2, 2016 to December 31, 2016, affecting comparability of fiscal 2017 and 2016 amounts. See Note 3 for additional information about the Merger. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed in the preparation of these financial statements: Principles of consolidation - The accompanying consolidated financial statements include the accounts of FirstCash, Inc. and its wholly-owned subsidiaries. The Company regularly makes acquisitions and the results of operations for the acquired stores have been consolidated since the acquisition dates. All significant intercompany accounts and transactions have been eliminated. See Note 3 . Cash and cash equivalents - The Company considers any highly liquid investments with an original maturity of three months or less at the date of acquisition to be cash equivalents. As of December 31, 2017 , the amount of cash associated with indefinitely reinvested foreign earnings was $79.8 million , which is primarily held in Mexican pesos. Customer loans and revenue recognition - Pawn loans typically have a term of 30 days and are secured by the customer’s pledge of tangible personal property, which the Company holds during the term of the loan. If a pawn loan defaults, the Company relies on the sale of the pawned property to recover the principal amount of an unpaid pawn loan, plus a yield on the investment, because the Company’s pawn loans are non-recourse against the customer. The customer’s creditworthiness does not affect the Company’s financial position or results of operations. The Company accrues pawn loan fee revenue on a constant-yield basis over the life of the pawn loan for all pawns for which the Company deems collection to be probable based on historical pawn redemption statistics. If the pawn loan is not repaid, the principal amount loaned becomes the carrying value of the forfeited collateral, which is recovered through sales to other customers at prices above the carrying value. The Company’s pawn merchandise sales are primarily retail sales to the general public in its pawn stores. The Company acquires pawn merchandise inventory through forfeited pawn loans and through purchases of used goods directly from the general public. The Company also retails limited quantities of new or refurbished merchandise obtained directly from wholesalers and manufacturers. The Company records sales revenue at the time of the sale. The Company presents merchandise sales net of any sales or value-added taxes collected. The Company does not provide direct financing to customers for the purchase of its merchandise, but does permit its customers to purchase merchandise on an interest-free layaway plan. Should the customer fail to make a required payment pursuant to a layaway plan, the previous payments are typically forfeited to the Company. Interim payments from customers on layaway sales are recorded as deferred revenue and subsequently recorded as retail merchandise sales revenue when the final payment is received or when previous payments are forfeited to the Company. Some jewelry is processed at third-party facilities and the precious metal and diamond content is sold at either prevailing market commodity prices or a previously agreed upon price with a commodity buyer. The Company records revenue from these wholesale scrap jewelry transactions when a price has been agreed upon and the Company ships the jewelry to the buyer. Consumer loans are unsecured cash advances and installment loans with terms that typically range from 7 to 365 days. The Company accrues consumer loan fees on a constant-yield basis over the term of the consumer loan. The Company offers fee-based credit services organization programs (“CSO Programs”) to assist consumers in obtaining extensions of credit from independent, non-bank, consumer lending companies (the “Independent Lenders”). The Company’s stand-alone consumer loan stores and select pawn stores in the states of Texas and Ohio offer the CSO Programs. The Company’s CSO Programs comply with the respective jurisdiction’s credit services organization act, credit access business law or a similar statute. The Company recognizes credit services fees ratably over the life of the extension of credit made by the Independent Lenders. The extensions of credit made by the Independent Lenders to credit services customers typically have terms of 7 to 365 days. Credit loss provisions - The Company has determined no allowance related to credit losses on pawn loans is required as the fair value of the pledged collateral is significantly in excess of the pawn loan amount. The Company maintains an allowance for credit losses on consumer loans on an aggregate basis at a level it considers sufficient to cover estimated losses in the collection of its consumer loans. The allowance for credit losses is based primarily upon historical credit loss experience, with consideration given to recent credit loss trends and changes in loan characteristics (e.g., average amount financed and term), delinquency levels, collateral values, economic conditions and underwriting and collection practices. The allowance for credit losses is periodically reviewed by management with any changes reflected in current operations. The Company fully reserves or charges off consumer loans once the loan has been classified as delinquent for 60 days . Short-term loans are considered delinquent when payment of an amount due is not made as of the due date. Installment loans are considered delinquent when a customer misses two payments. If a loan is estimated to be uncollectible before it is fully reserved, it is charged off at that point. Recoveries on loans previously charged to the allowance, including the sale of delinquent loans to unaffiliated third parties, are credited to the allowance when collected or when sold to a third party. The Company generally does not accrue interest on delinquent consumer loans. In addition, delinquent consumer loans generally may not be renewed, and if, during its attempt to collect on a delinquent consumer loan, the Company allows additional time for payment through a payment plan or a promise to pay, it is still considered delinquent. Generally, all payments received are first applied against accrued but unpaid interest and fees and then against the principal balance of the loan. Under the CSO Programs, the Company assists customers in applying for a short-term extension of credit from Independent Lenders and issues the Independent Lenders a guarantee for the repayment of the extension of credit. The Company is required to recognize, at the inception of the guarantee, a liability for the fair value of the obligation undertaken by issuing the guarantee. According to the guarantee, if the borrower defaults on the extension of credit, the Company will pay the Independent Lenders the principal, accrued interest, insufficient funds and late fee, if applicable, all of which the Company records as a component of its credit loss provision. The Company is entitled to seek recovery, directly from its customers, of the amounts it pays the Independent Lenders in performing under the guarantees. The Company records the estimated fair value of the liability in accrued liabilities. The estimated fair value of the liability is periodically reviewed by management with any changes reflected in current operations. Although it is at least reasonably possible that events or circumstances could occur in the future that are not presently foreseen which could cause actual credit losses to be materially different from the recorded allowance for credit losses, the Company believes it has given appropriate consideration to all relevant factors and has made reasonable assumptions in determining the allowance for credit losses. Foreign currency transactions - The Company has significant operations in Latin America, where in Mexico and Guatemala the functional currency is the Mexican peso and Guatemalan quetzal, respectively. Accordingly, the assets and liabilities of these subsidiaries are translated into U.S. dollars at the exchange rate in effect at each balance sheet date, and the resulting adjustments are accumulated in other comprehensive income (loss) as a separate component of stockholders’ equity. Revenues and expenses are translated at the average exchange rates occurring during the respective fiscal period. Prior to translation, U.S. dollar-denominated transactions of the foreign subsidiaries are remeasured into their functional currency using current rates of exchange for monetary assets and liabilities and historical rates of exchange for non-monetary assets and liabilities. Gains and losses from remeasurement of dollar-denominated monetary assets and liabilities in Mexico and Guatemala are included in store operating expenses. Deferred taxes are not currently provided on cumulative foreign currency translation adjustments as the Company indefinitely reinvests earnings of its foreign subsidiaries. The Company also has operations in El Salvador where the reporting and functional currency is the U.S. dollar. The average value of the Mexican peso to the U.S. dollar exchange rate for fiscal 2017 was 18.9 to 1 , compared to 18.7 to 1 in fiscal 2016 and 15.8 to 1 in fiscal 2015 . The average value of the Guatemalan quetzal to the U.S. dollar exchange rate for fiscal 2017 was 7.4 to 1 , compared to 7.6 to 1 in fiscal 2016 and 7.7 to 1 in fiscal 2015 . Store operating expenses - Costs incurred in operating the pawn stores and consumer loan stores have been classified as store operating expenses. Operating expenses include salary and benefit expense of store-level employees, occupancy costs, bank charges, security, insurance, utilities, supplies and other costs incurred by the stores. Layaway and deferred revenue - Interim payments from customers on layaway sales are credited to deferred revenue and subsequently recorded as retail merchandise sales revenue when the final payment is received or when the previous payments are forfeited to the Company. Layaway payments from customers are included in customer deposits in the accompanying consolidated balance sheets. Inventories - Inventories represent merchandise acquired from forfeited pawns and merchandise purchased directly from the general public. The Company also retails limited quantities of new or refurbished merchandise obtained directly from wholesalers and manufacturers. Inventories from forfeited pawns are recorded at the amount of the pawn principal on the unredeemed goods, exclusive of accrued interest. Inventories purchased directly from customers, wholesalers and manufacturers are recorded at cost. The cost of inventories is determined on the specific identification method. Inventories are stated at the lower of cost or net realizable value and, accordingly, inventory valuation allowances are established when inventory carrying values are in excess of estimated selling prices, net of direct costs of disposal. Management has evaluated inventories and determined that a valuation allowance is not necessary. Property and equipment - Property and equipment are recorded at cost. Depreciation is recorded on the straight-line method generally based on estimated useful lives of 30 to 40 years for buildings and three to five years for furniture, fixtures and equipment. The costs of improvements on leased stores are capitalized as leasehold improvements and are depreciated using the straight-line method over the applicable lease period, or useful life, if shorter. Maintenance and repairs are charged to expense as incurred; renewals and betterments are charged to the appropriate property and equipment accounts. Upon sale or retirement of depreciable assets, the cost and related accumulated depreciation is removed from the accounts, and the resulting gain or loss is included in the results of operations in the period the assets are sold or retired. Goodwill and other indefinite-lived intangible assets - Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in each business combination. The Company performs its goodwill impairment assessment annually as of December 31, and between annual assessments if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company’s reporting units, which are tested for impairment, are U.S. operations and Latin America operations. The Company assesses goodwill for impairment at a reporting unit level by first assessing a range of qualitative factors, including, but not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for the Company’s products and services, regulatory and political developments, entity specific factors, such as strategy and changes in key personnel, and overall financial performance. If, after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company proceeds to the two-step impairment testing methodology. See Note 13 . The Company’s indefinite-lived intangible assets consist of trade names, pawn licenses and franchise agreements related to a check-cashing operation. The Company performs its indefinite-lived intangible asset impairment assessment annually as of December 31, and between annual assessments if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 13 . Long-lived assets - Property and equipment, intangible assets subject to amortization and non-current assets are reviewed for impairment whenever events or changes in circumstances indicate that the net book value of the asset may not be recoverable. An impairment loss is recognized if the sum of the expected future cash flows (undiscounted and before interest) from the use of the asset is less than the net book value of the asset. Generally, the amount of the impairment loss is measured as the difference between the net book value of the asset and the estimated fair value of the related asset. The Company has not recorded any material impairment loss for the fiscal years ended December 31, 2017 , 2016 and 2015 . Fair value of financial instruments - The fair value of financial instruments is determined by reference to various market data and other valuation techniques, as appropriate. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. All fair value measurements related to acquisitions are level 3, non-recurring measurements, based on non-observable inputs. Unless otherwise disclosed, the fair values of financial instruments approximate their recorded values, due primarily to their short-term nature. See Note 6 . Income taxes - The Company uses the asset and liability method of computing deferred income taxes on all material temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. The Tax Cuts and Jobs Act (“Tax Act”), which was enacted in December 2017, had a substantial impact on the Company’s income taxes for the year ended December 31, 2017. See Note 11 . Advertising - The Company expenses the costs of advertising the first time the advertising takes place. Advertising expense for the fiscal years ended December 31, 2017 , 2016 and 2015 , was $1.8 million , $1.9 million , and $0.7 million , respectively. Share-based compensation - All share-based payments to employees and directors are recognized in the financial statements based on the grant date or if applicable, the subsequent modification date fair value. The Company recognizes compensation cost net of estimated forfeitures and recognizes the compensation cost for only those awards expected to vest on a straight-line basis over the requisite service period of the award, which is generally the vesting term. The Company records share-based compensation cost as an administrative expense. See Note 14 . Earnings per share - Basic income per share is computed by dividing income by the weighted-average number of shares outstanding during the year. Diluted income 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. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Year Ended December 31, 2017 2016 2015 Numerator: Net income $ 143,892 $ 60,127 $ 60,710 Denominator: Weighted-average common shares for calculating basic earnings per share 47,854 34,997 28,138 Effect of dilutive securities: Stock options and nonvested stock awards 34 7 188 Weighted-average common shares for calculating diluted earnings per share 47,888 35,004 28,326 Net income per share: Basic $ 3.01 $ 1.72 $ 2.16 Diluted $ 3.00 $ 1.72 $ 2.14 Pervasiveness of estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and related revenue and expenses, and the disclosure of gain and loss contingencies at the date of the financial statements. Such estimates and assumptions are subject to a number of risks and uncertainties, which may cause actual results to differ materially from the Company’s estimates. Significant estimates include allowances for doubtful accounts receivable and related credit loss provisions, impairment of goodwill and other intangible assets and current and deferred tax assets and liabilities. Recent accounting pronouncements - In May 2014, the Financial Accounting Standards Board issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 is a comprehensive revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the Financial Accounting Standards Board issued ASU No. 2015-14 “Revenue from Contracts with Customers (Topic 606),” which delayed the effective date of ASU 2014-09 by one year. In addition, between March 2016 and December 2016, the Financial Accounting Standards Board issued ASU No. 2016-08, “Revenue from Contracts with Customers - Principal versus Agent Considerations (Reporting revenue gross versus net)” (“ASU 2016-08”), ASU No. 2016-10, “Identifying Performance Obligations and Licensing” (“ASU 2016-10”), ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”), and ASU No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers” (“ASU 2016-20”). ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 clarify certain aspects of ASU 2014-09 and provide additional implementation guidance. ASU 2014-09, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 (collectively, “ASC 606”) become effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2017 for public companies. Early adoption is permitted but not before annual reporting periods beginning after December 15, 2016. Entities are permitted to adopt ASC 606 using one of two methods: (a) full retrospective adoption, meaning the standard is applied to all periods presented, or (b) modified retrospective adoption, meaning the cumulative effect of applying the new standard is recognized as an adjustment to the opening retained earnings balance. The Company will adopt ASC 606 on January 1, 2018 using the modified retrospective method. The Company evaluated the impact of ASC 606 and has concluded ASC 606 will not impact the Company’s revenue recognition for pawn loan fees or consumer loan fees, as it believes neither is within the scope of ASC 606. Further, the Company has not identified any impacts to its consolidated financial statements that it believes will be material as a result of the adoption of ASC 606 for other revenue streams (retail merchandise sales, credit services fees and wholesale scrap jewelry sales). In July 2015, the Financial Accounting Standards Board issued ASU No. 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”). ASU 2015-11 requires inventory be measured at the lower of cost or net realizable value. ASU 2015-11 defines net realizable value as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Inventory measured using last-in, first-out (“LIFO”) or the retail inventory method are excluded from the scope of this update. ASU 2015-11 requires prospective application and is effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years, with early adoption permitted. The Company adopted ASU 2015-11 as of January 1, 2017, and the guidance was applied prospectively. There were no changes to the Company’s financial position, results of operations, financial statement disclosures or valuation of inventory. In February 2016, the Financial Accounting Standards Board issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 requires a lessee to recognize, in the statement of financial position, a liability to make lease payments (the lease liability) and a right-to-use asset representing its right to use the underlying asset for the lease term. Leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. Lessor accounting remains largely unchanged. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those annual periods, with early adoption permitted. An entity will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently assessing the potential impact of ASU 2016-02 on its consolidated financial statements. In June 2016, the Financial Accounting Standards Board issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. ASU 2016-13 is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently assessing the potential impact of ASU 2016-13 on its consolidated financial statements. In August 2016, the Financial Accounting Standards Board issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing existing diversity in practice. ASU 2016-15 is effective for public entities for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company does not expect ASU 2016-15 to have a material effect on its consolidated financial statements or current financial statement disclosures. In January 2017, the Financial Accounting Standards Board issued ASU No. 2017-01, “Business Combinations (Topic 805) - Clarifying the Definition of a Business” (“ASU 2017-01”). ASU 2017-01 provides amendments to clarify the definition of a business and affect all companies and other reporting organizations that must determine whether they have acquired or sold a business. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years and should be applied prospectively as of the beginning of the period of adoption. Early adoption is permitted under certain circumstances. The Company does not expect ASU 2017-01 to have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. In January 2017, the Financial Accounting Standards Board issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). These amendments eliminate step 2 from the goodwill impairment test. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017 and should be adopted on a prospective basis. The Company does not expect ASU 2017-04 to have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. |
Merger and Other Acquisitions
Merger and Other Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Merger and Other Acquisitions | MERGER AND OTHER ACQUISITIONS 2017 Acquisitions During fiscal 2017, the Company completed the acquisitions of five stores in Mexico and one store in the U.S., which were not material to the Company’s consolidated financial statements. 2016 Cash America Merger On September 1, 2016, the Company completed its Merger of equals business combination with Cash America as contemplated by the Agreement and Plan of Merger, dated as of April 28, 2016 (the “Merger Agreement”), by and among the Company, Cash America and Frontier Merger Sub LLC, a wholly owned subsidiary of the Company (“Merger Sub”). Pursuant to the Merger Agreement, Cash America merged with and into Merger Sub, with Merger Sub continuing as the surviving entity in the Merger and a wholly owned subsidiary of the Company. Under the terms of the Merger Agreement, each former share of Cash America common stock issued and outstanding immediately prior to September 1, 2016 was converted to 0.84 shares of the Company’s common stock with fractional shares paid in cash. As a result, the Company issued approximately 20,181,000 shares of its common stock to former holders of Cash America common stock. Additionally, Cash America employee and director based restricted stock awards outstanding immediately prior to the Merger were fully-vested and paid out in cash in conjunction with the closing of the Merger. The Company was determined to be the accounting acquirer in the Merger. The following table summarizes the consideration transferred in connection with the Merger (in thousands, except ratio and per share amount): Cash America Merger Cash America shares outstanding at September 1, 2016 24,025 Exchange ratio 0.84 Shares of First Cash common stock issued 20,181 Company common stock per share price at September 1, 2016 $ 50.32 Fair value of Company common stock issued to Cash America shareholders $ 1,015,507 Cash in lieu of fractional shares paid by the Company 10 Cash America outstanding stock awards settled in cash 50,760 Aggregate Merger consideration $ 1,066,277 The following amounts represent the final determination (as of the Merger date) of the fair value of identifiable assets acquired and liabilities assumed in the Merger, including adjustments made during the twelve month measurement period from the date of the Merger (in thousands): Cash America Merger Cash and cash equivalents $ 42,520 Pawn loans 234,761 Fees and service charges receivable 26,893 Consumer loans 27,549 Inventories 224,548 Income taxes receivable 25,276 Other current assets 28,547 Investment in common stock of Enova (1) 60,785 Property and equipment 118,199 Goodwill (2) 519,418 Intangible assets (3) 103,250 Other assets 62,994 Current liabilities (95,630 ) Customer deposits (21,536 ) Revolving unsecured credit facility (4) (232,000 ) Deferred tax liabilities (27,120 ) Other liabilities (32,177 ) Aggregate Merger consideration $ 1,066,277 (1) Represents Cash America’s investment in the common stock of Enova International, Inc. (“Enova”), a publicly traded company focused on providing online consumer lending products. Prior to December 31, 2016, all of the Enova shares acquired were sold in open market transactions at an average price of $10.40 per share, which resulted in a net gain on sale of $1.3 million and generated net proceeds of $62.1 million . (2) The goodwill is attributable to the excess of the aggregate Merger consideration over the fair value of the net tangible and intangible assets acquired and liabilities assumed and is considered to represent the synergies and economies of scale expected from combining the operations of the Company and Cash America. This goodwill has been assigned to the U.S. operations reporting unit. Approximately $223.0 million of the goodwill arising from the Merger is expected to be deductible for U.S. income tax purposes. (3) Intangible assets acquired and the respective useful lives assigned consist of the following (dollars in thousands): Amount Useful life (in years) Trade names $ 46,300 Indefinite Pawn licenses 32,300 Indefinite Customer relationships 14,700 Five Executive non-compete agreements 8,700 Two Franchise agreements related to check cashing operation 1,250 Indefinite $ 103,250 The customer relationships are being amortized using an accelerated amortization method that reflects the future cash flows expected from the returning pawn customers of Cash America. The non-compete agreements are being amortized over a straight-line basis over the life of the non-compete agreements. As the trade names, pawn licenses and franchise agreements have indefinite lives, they are not amortized. (4) Represents outstanding borrowings under Cash America’s revolving unsecured credit facility that became due upon completion of the Merger. The Cash America revolving unsecured credit facility was repaid by the Company using proceeds from the 2016 Credit Facility (as described in Note 10 ) and was terminated upon completion of the Merger. In accordance with applicable accounting guidance, measurement period adjustments pertaining to the Merger were recorded during fiscal 2017 and were not retroactively reclassified to prior periods. Such measurement period adjustments were not material. Transaction costs associated with the Merger were expensed as incurred and are included in Merger and other acquisition expenses in the consolidated statements of income. These expenses included investment banking, legal, accounting, and other related third party costs associated with the Merger, including preparation for regulatory filings and shareholder approvals. See Note 4 for further information about Merger and other acquisition expenses. 2016 Other Acquisitions The Company completed other acquisitions during fiscal 2016, as described below, consistent with its strategy to continue its expansion of pawn stores in selected markets. The purchase price of each acquisition was allocated to assets acquired and liabilities assumed based upon their estimated fair market values at the date of acquisition. The excess purchase price over the estimated fair market value of the net assets acquired has been recorded as goodwill. The goodwill arising from these acquisitions consists largely of the synergies and economies of scale expected from combining the operations of the Company and the pawn stores acquired. The Company acquired the stock of Maxi Prenda, S.A. de C.V., the operating entity owning the pawn loans, inventories, layaways and other operating assets and liabilities of 166 pawn stores located in Mexico on January 6, 2016 and the assets of 13 pawn stores located in El Salvador on February 2, 2016 in related transactions (collectively the “Latin America Acquisition”). The combined purchase price for the all-cash transaction was $30.1 million , net of cash acquired before certain post-closing adjustments. Subsequent to the acquisition, $0.2 million of post closing adjustments were identified, resulting in a combined purchase price of $29.9 million , net of cash acquired and is subject to further post-closing adjustments. The purchase was composed of $27.4 million in cash paid during fiscal 2016 and remaining payables to the sellers of approximately $2.5 million . In addition, the Company assumed approximately $6.6 million in peso-denominated debt from these acquisitions which was repaid in full by the Company in January 2016. The assets, liabilities and results of operations of the locations are included in the Company’s consolidated results as of the acquisition dates. The goodwill resulting from the Latin America Acquisition has been assigned to the Latin America operations reporting unit. During fiscal 2016, three pawn stores located in the U.S. were acquired by the Company (“U.S. Acquisitions”) for an all-cash aggregate purchase price of $2.0 million , net of cash acquired. During fiscal 2016, the Company also paid $0.6 million of deferred purchase price amounts payable related to prior-year acquisitions. The goodwill resulting from the U.S. Acquisitions has been assigned to the U.S. operations reporting unit. Supplemental Pro Forma Information The following unaudited supplemental pro forma financial information for the years ended December 31, 2016 and 2015 reflects the consolidated results of operations of the Company as if the Merger, the Latin America Acquisition and the U.S. Acquisitions had occurred on January 1, 2015 (in thousands, except per share amounts): Year Ended Year Ended December 31, 2016 December 31, 2015 As Reported Pro Forma As Reported Pro Forma Total revenue $ 1,088,377 $ 1,771,835 $ 704,602 $ 1,792,523 Net income 60,127 118,333 60,710 61,479 Net income per share: Basic $ 1.72 $ 2.44 $ 2.16 $ 1.27 Diluted 1.72 2.44 2.14 1.27 Pro forma adjustments are included only to the extent they are directly attributable to the Merger and 2016 acquisitions. The unaudited pro forma results have been adjusted with respect to certain aspects of the Merger and 2016 acquisitions primarily to reflect: • depreciation and amortization expense that would have been recognized assuming fair value adjustments to the existing tangible and intangible assets acquired and liabilities assumed; • interest expense based on a lower combined weighted-average interest rate on borrowings (see Note 10 ) partially offset by an increase in total indebtedness primarily incurred to finance certain cash payments and transaction costs related to the Merger; • the elimination of losses on extinguishment of debt recognized in Cash America’s historical financial statements, as the related debt was terminated upon completion of the Merger; and • the inclusion in the pro forma fiscal 2015 amount of $68.8 million in Merger and other acquisition expenses incurred by both the acquirees and acquirer (excluded from the pro forma fiscal 2016 amounts). The pro forma financial information has been prepared for informational purposes only and does not include any anticipated synergies or other potential benefits of the Merger or 2016 acquisitions. It also does not give effect to certain future charges that the Company expects to incur in connection with the Merger and 2016 acquisitions, including, but not limited to, additional professional fees, legal expenses, severance, retention and other employee-related costs, contract breakage costs and costs related to consolidation of technology systems and corporate facilities. Pro forma results do not purport to be indicative of what would have resulted had the acquisitions occurred on the date indicated or what may result in the future. |
Merger and Other Acquisition Ex
Merger and Other Acquisition Expenses (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Merger and Other Acquisition Expenses | MERGER AND OTHER ACQUISITION EXPENSES The Company incurred significant expenses in 2017 and 2016 in connection with the Merger and integration with Cash America. The Merger related expenses are predominantly incremental costs directly associated with the Merger and integration of Cash America, including professional fees, legal expenses, severance, retention and other employee-related costs, accelerated vesting of certain equity compensation awards, contract breakage costs and costs related to consolidation of technology systems and corporate facilities. In addition, the Company incurred transaction and integration costs in connection with the Company’s other acquisitions in 2016 and 2015. The Company presents Merger and other acquisition expenses separately in the consolidated statements of income to identify these activities apart from the expenses incurred to operate the business. The table below summarizes the major components of Merger and other acquisition expenses (in thousands): Year Ended December 31, 2017 2016 2015 Merger related expenses: Transaction (1) $ — $ 18,252 $ — Severance and retention (2) 3,897 15,229 — Other (3) 5,165 2,739 — Total Merger related expenses 9,062 36,220 — Other acquisition expenses: Transaction and integration — 450 2,875 Total other acquisition expenses — 450 2,875 Total Merger and other acquisition expenses $ 9,062 $ 36,670 $ 2,875 (1) For the year ended December 31, 2016 , the Company recognized an income tax benefit of $ 3.9 million , respectively, related to the Merger transaction expenses; a significant portion of these expenses were not deductible for income tax purposes. (2) For the year ended December 31, 2017 and 2016 , the Company made severance and retention payments of $7.4 million and $ 10.4 million , respectively, and as of December 31, 2017 and 2016 , had $1.3 million and $ 4.8 million , respectively, accrued for future payments. Accrued severance and retention is included in accounts payable and accrued expenses in the accompanying consolidated balance sheets. (3) Represents accelerated share-based compensation expense related to restricted stock awards for certain First Cash employees which vested as a result of the Merger and other integration expenses. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Capital Stock | CAPITAL STOCK In January 2015, the Company’s Board of Directors authorized a common stock repurchase program for up to 2,000,000 shares of the Company’s outstanding common stock. During the first quarter of 2017, the Company repurchased 228,000 shares of its common stock at an aggregate cost of $10.0 million and an average cost per share of $43.94 . In May 2017, the Company’s Board of Directors authorized a new common stock repurchase program for up to $100.0 million of the Company’s outstanding common stock. The new share repurchase program replaced the Company’s prior share repurchase plan, which was terminated in May 2017. Under the May 2017 stock repurchase program, the Company has repurchased 1,388,000 shares of its common stock at an aggregate cost of $83.0 million and an average cost per share of $59.80 and $17.0 million remained available for repurchases as of December 31, 2017 . On January 31, 2018, the Company completed the May 2017 stock repurchase program after repurchasing approximately 239,000 shares of common stock at an aggregate cost of $17.0 million . The Company did not repurchase any of its shares in 2016 as it suspended its share repurchase program in 2016 due to the Merger. In October 2017, the Company’s Board of Directors authorized an additional common stock repurchase program for up to $100.0 million of the Company’s outstanding common stock, which became effective on January 31, 2018 upon completion of the May 2017 stock repurchase program. The Company intends to continue repurchases under its repurchase program in 2018 through open market transactions under trading plans in accordance with Rule 10b5-1 and Rule 10b-18 under the Exchange Act of 1934, as amended, subject to a variety of factors, including, but not limited to, the level of cash balances, credit availability, debt covenant restrictions, general business conditions, regulatory requirements, the market price of the Company’s stock, the dividend policy and the availability of alternative investment opportunities. Total cash dividends paid in fiscal 2017 and 2016 were $36.8 million and $19.8 million , respectively. The declaration and payment of cash dividends in the future (quarterly or otherwise) will be made by the Board of Directors, from time to time, subject to the Company’s financial condition, results of operations, business requirements, compliance with legal requirements and debt covenant restrictions. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of financial instruments is determined by reference to various market data and other valuation techniques, as appropriate. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The three fair value levels are (from highest to lowest): Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Recurring Fair Value Measurements As of December 31, 2017 , the Company did not have any financial assets or liabilities that are measured at fair value on a recurring basis. The Company’s financial assets that were measured at fair value on a recurring basis as of December 31, 2016 were as follows (in thousands): December 31, Fair Value Measurements Using 2016 Level 1 Level 2 Level 3 Financial assets: Cash America nonqualified savings plan (see Note 15) $ 12,663 $ 12,663 $ — $ — $ 12,663 $ 12,663 $ — $ — Prior to the Merger, Cash America had a nonqualified savings plan that was available to certain members of management. Upon completion of the Merger, the nonqualified savings plan was terminated and during the three months ended March 31, 2017, the Company dissolved the plan and distributed the remaining assets to the participants. As of December 31, 2016, the assets of the nonqualified savings plan included marketable equity securities, which were classified as Level 1 and the fair values are based on quoted market prices. The nonqualified savings plan assets were included in prepaid expenses and other current assets in the accompanying consolidated balance sheet with an offsetting liability of equal amount, which was included in accounts payable and accrued expenses in the accompanying consolidated balance sheet. Fair Value Measurements on a Nonrecurring 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. Financial Assets and Liabilities Not Measured at Fair Value The Company’s financial assets and liabilities as of December 31, 2017 and 2016 that are not measured at fair value in the consolidated balance sheets are as follows (in thousands): Carrying Value Estimated Fair Value December 31, December 31, Fair Value Measurements Using 2017 2017 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 114,423 $ 114,423 $ 114,423 $ — $ — Pawn loans 344,748 344,748 — — 344,748 Consumer loans, net 23,522 23,522 — — 23,522 Fees and service charges receivable 42,736 42,736 — — 42,736 $ 525,429 $ 525,429 $ 114,423 $ — $ 411,006 Financial liabilities: Revolving unsecured credit facility $ 107,000 $ 107,000 $ — $ 107,000 $ — Senior unsecured notes, outstanding principal 300,000 314,000 — 314,000 — $ 407,000 $ 421,000 $ — $ 421,000 $ — Carrying Value Estimated Fair Value December 31, December 31, Fair Value Measurements Using 2016 2016 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 89,955 $ 89,955 $ 89,955 $ — $ — Pawn loans 350,506 350,506 — — 350,506 Consumer loans, net 29,204 29,204 — — 29,204 Fees and service charges receivable 41,013 41,013 — — 41,013 $ 510,678 $ 510,678 $ 89,955 $ — $ 420,723 Financial liabilities: Revolving unsecured credit facility $ 260,000 $ 260,000 $ — $ 260,000 $ — Senior unsecured notes, outstanding principal 200,000 208,000 — 208,000 — $ 460,000 $ 468,000 $ — $ 468,000 $ — As cash and cash equivalents have maturities of less than three months, the carrying value of cash and cash equivalents approximates fair value. Due to their short-term maturities, the carrying value of pawn loans and fees and service charges receivable approximate fair value. Short-term loans and installment loans, collectively, represent consumer loans, net on the accompanying consolidated balance sheets and are carried net of the allowance for estimated loan losses, which is calculated by applying historical loss rates combined with recent default trends to the gross consumer loan balance. The unobservable inputs used to calculate the fair value of these loans include historical loss rates, recent default trends and estimated remaining loan terms. Therefore, the carrying value approximated the fair value. The carrying value of the Company’s revolving unsecured credit facility approximates fair value as of December 31, 2017 and 2016 . The fair value of the senior unsecured notes have been estimated based on a discounted cash flow analysis using a discount rate representing the Company’s estimate of the rate that would be used by market participants. Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values. |
Customer Loans and Valuation Ac
Customer Loans and Valuation Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Customer Loans and Valuation Accounts | CUSTOMER LOANS AND VALUATION ACCOUNTS Customer loans, including pawn receivables and net of unearned finance fees, consist of the following (in thousands): Pawn Consumer Loan Total December 31, 2017 Total customer loans $ 344,748 $ 25,337 $ 370,085 Less allowance for doubtful accounts — (1,815 ) (1,815 ) $ 344,748 $ 23,522 $ 368,270 December 31, 2016 Total customer loans $ 350,506 $ 31,455 $ 381,961 Less allowance for doubtful accounts — (2,251 ) (2,251 ) $ 350,506 $ 29,204 $ 379,710 Changes in the allowance for consumer loan credit losses are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Balance at beginning of year $ 2,251 $ 66 $ 81 Provision for credit losses 12,762 6,049 808 Charge-offs, net of recoveries from customers (13,198 ) (3,864 ) (823 ) Balance at end of year $ 1,815 $ 2,251 $ 66 Under the CSO Programs, the Company assists customers in applying for a short-term extension of credit from Independent Lenders and issues the Independent Lenders a guarantee for the repayment of the extension of credit. The Company is required to recognize, at the inception of the guarantee, a liability for the fair value of the obligation undertaken by issuing the guarantee. The Company records the estimated fair value of the liability in accrued liabilities. Changes in the liability for credit services losses are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Balance at beginning of year $ 582 $ 498 $ 493 Provision for credit losses 7,057 5,944 6,351 Amounts paid to Independent Lenders under guarantees, net of recoveries from customers (7,199 ) (5,860 ) (6,346 ) Balance at end of year $ 440 $ 582 $ 498 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT Property and equipment consists of the following (in thousands): Year Ended December 31, 2017 2016 Land $ 33,700 $ 30,364 Buildings 63,016 55,137 Furniture, fixtures, equipment and leasehold improvements 313,545 284,391 410,261 369,892 Less: accumulated depreciation (179,920 ) (133,835 ) $ 230,341 $ 236,057 Depreciation expense for the fiscal years ended December 31, 2017 , 2016 and 2015 , was $44.5 million , $26.6 million , and $16.1 million , respectively. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities consist of the following (in thousands): Year Ended December 31, 2017 2016 Accrued compensation $ 25,203 $ 25,285 Sales, property, and payroll withholding taxes payable 14,812 13,546 Current unfavorable lease intangible liability 7,767 9,258 Deferred CSO fees 7,560 7,776 Trade accounts payable 4,791 11,664 Benefits liabilities and withholding payable 3,465 4,501 Accrued interest payable 1,402 3,506 Merger related severance and retention payable 1,336 4,848 Liability for expected losses on outstanding CSO guarantees 440 582 Cash America nonqualified savings plan (see Note 15) — 12,663 Other accrued liabilities 17,555 15,725 $ 84,331 $ 109,354 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT As of December 31, 2017 , annual maturities of the outstanding long-term debt for each of the five years after December 31, 2017 are as follows (in thousands): Fiscal 2018 $ — 2019 — 2020 — 2021 — 2022 107,000 Thereafter 300,000 $ 407,000 The following table details the Company’s long-term debt at the respective principal amounts, net of unamortized debt issuance costs (in thousands): As of December 31, 2017 2016 Senior unsecured notes: 5.375% senior notes due 2024 (1) $ 295,243 $ — 6.75% senior notes due 2021 (2) — 196,545 $ 295,243 $ 196,545 Revolving unsecured credit facility, maturing 2022 $ 107,000 $ 260,000 (1) As of December 31, 2017 , deferred debt issuance costs of $4.8 million are included as a direct deduction from the carrying amount of the senior unsecured notes due 2024 in the accompanying consolidated balance sheets. (2) As of December 31, 2016 , deferred debt issuance costs of $3.5 million are included as a direct deduction from the carrying amount of the senior unsecured notes due 2021 in the accompanying consolidated balance sheets. Senior Unsecured Notes On May 30, 2017, the Company completed an offering of $300.0 million of 5.375% senior notes due on June 1, 2024 (the “Notes”). Interest on the Notes is payable semi-annually in arrears on June 1 and December 1, commencing on December 1, 2017. The Notes were sold to the placement agents as initial purchasers for resale only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States in accordance with Regulation S under the Securities Act. The Company used the proceeds from the offering to repurchase, or otherwise redeem, its outstanding $200.0 million , 6.75% senior notes due 2021 (the “2021 Notes”), to pay related fees and expenses and for general corporate purposes, including share repurchases and paying borrowings under the Company’s credit facility. The Company capitalized $5.1 million in issuance costs, which consisted primarily of placement agent fees and legal and other professional expenses. The issuance costs are being amortized over the life of the Notes as a component of interest expense and are carried as a direct deduction from the carrying amount of the Notes in the accompanying consolidated balance sheets. The Notes are fully and unconditionally guaranteed on a senior unsecured basis jointly and severally by all of the Company's existing and future domestic subsidiaries that guarantee its primary revolving bank credit facility. The Notes will permit the Company to make share repurchases of up to $100.0 million with the net proceeds of the Notes and other available funds and to make restricted payments, such as purchasing shares of its stock and paying cash dividends, in an unlimited amount if, after giving pro forma effect to the incurrence of any indebtedness to make such payment, the Company's consolidated total debt ratio (“Net Debt Ratio”) is less than 2.25 to 1 . The Net Debt Ratio is defined generally in the indenture governing the Notes (the “Indenture”) as the ratio of (1) the total consolidated debt of the Company minus cash and cash equivalents of the Company to (2) the Company’s consolidated trailing twelve months EBITDA, as adjusted to exclude certain non-recurring expenses and giving pro forma effect to operations acquired during the measurement period. The Company may redeem the Notes at any time on or after June 1, 2020, at the redemption prices set forth in the Indenture, plus accrued and unpaid interest, if any. In addition, prior to June 1, 2020, the Company may redeem some or all of the Notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, plus a “make-whole” premium set forth in the Indenture. The Company may redeem up to 35% of the Notes prior to June 1, 2020, with the proceeds of certain equity offerings at a redemption price of 105.375% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any. In addition, upon a change of control, noteholders have the right to require the Company to purchase the Notes at a price equal to 101% of the principal amount of the Notes, plus accrued and unpaid interest, if any. During fiscal 2017, the Company recognized a $14.1 million loss on extinguishment of debt related to the repurchase or redemption of the 2021 Notes which includes the tender or redemption premiums paid over the outstanding $200.0 million principal amount of the 2021 Notes and other reacquisition costs of $10.9 million and the write off of unamortized debt issuance costs of $3.2 million . Revolving Credit Facility At December 31, 2017 , the Company maintained a line of credit with a group of U.S. based commercial lenders (the “2016 Credit Facility”) in the amount of $400.0 million . In May 2017, the term of the 2016 Credit Facility was extended through September 2, 2022 . The calculation of the fixed charge coverage ratio was also amended to remove share repurchases from the calculation to provide greater flexibility for making future share repurchases and paying cash dividends. At December 31, 2017 , the Company had $107.0 million in outstanding borrowings and $5.1 million in outstanding letters of credit under the 2016 Credit Facility, leaving $287.9 million available for future borrowings. The 2016 Credit Facility bears interest, at the Company’s option, at either (i) the prevailing London Interbank Offered Rate (“LIBOR”) (with interest periods of 1 week or 1, 2, 3 or 6 months at the Company’s option) plus a fixed spread of 2.5% or (ii) the prevailing prime or base rate plus a fixed spread of 1.5% . The agreement has a LIBOR floor of 0% . Additionally, the Company is required to pay an annual commitment fee of 0.50% on the average daily unused portion of the 2016 Credit Facility commitment. The weighted-average interest rate on amounts outstanding under the 2016 Credit Facility at December 31, 2017 was 4.00% based on 1 week LIBOR. Under the terms of the 2016 Credit Facility, the Company is required to maintain certain financial ratios and comply with certain financial covenants. The 2016 Credit Facility also contains customary restrictions on the Company’s ability to incur additional debt, grant liens, make investments, consummate acquisitions and similar negative covenants with customary carve-outs and baskets. The Company was in compliance with the covenants of the 2016 Credit Facility as of December 31, 2017 . During fiscal 2017 , the Company made net payments of $153.0 million pursuant to the 2016 Credit Facility. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES On December 22, 2017, the Tax Act was enacted into law. The Tax Act significantly changes U.S. corporate income tax laws by, among other things, reducing the U.S. corporate income tax rate from 35% to 21% starting in 2018 and creating a territorial tax system with a one-time mandatory tax on previously deferred foreign earnings of U.S. corporations. As a result, the Company recorded a provisional net income tax benefit of $27.3 million during the fourth quarter of 2017. This amount, which is included in the provision for income taxes in the consolidated statements of income, consists of two components: (i) a $29.2 million income tax benefit resulting from the remeasurement of the Company’s domestic net deferred tax liabilities based on the new lower U.S. corporate income tax rate, and (ii) a $1.9 million U.S. tax expense relating to the one-time mandatory tax on previously deferred earnings of the Company’s foreign subsidiaries, which will be paid over an eight-year period. While the Company has substantially completed its provisional analysis of the income tax effects of the Tax Act and recorded a reasonable estimate of such effects, the $27.3 million net income tax benefit may differ due to, among other things, further refinement of the Company’s calculations, changes in interpretations and assumptions the Company made, implementation guidance from the Internal Revenue Service and clarifications of state law. Once the Company finalizes certain estimates and tax positions when it files its 2017 U.S. and state tax returns, it will be able to conclude whether any further adjustments are required to its domestic net deferred tax liability balance as of December 31, 2017, as well as to the liability associated with the one-time mandatory tax on previously deferred foreign earnings. Any adjustments to these provisional amounts will be included in provision for income taxes in the reporting period in which any such adjustments are determined, which will be no later than the fourth quarter of 2018. Components of the provision for income taxes and the income to which it relates for the years ended December 31, 2017 , 2016 and 2015 consist of the following (in thousands): Year Ended December 31, 2017 2016 2015 Income before income taxes (1) : Domestic $ 93,365 $ 30,804 $ 27,599 Foreign 78,947 62,643 60,082 Income before income taxes $ 172,312 $ 93,447 $ 87,681 Current income taxes: Federal (2) $ 15,995 $ 1,419 $ 7,933 Foreign 23,340 18,787 18,763 State and local 968 1,139 705 Current provision for income taxes 40,303 21,345 27,401 Deferred provision (benefit) for income taxes: Federal (3) (11,509 ) 11,826 931 Foreign (1,079 ) (528 ) (1,414 ) State and local 705 677 53 Total deferred provision (benefit) for income taxes (11,883 ) 11,975 (430 ) Provision for income taxes $ 28,420 $ 33,320 $ 26,971 (1) Includes the allocation of certain administrative expenses and the payment of royalties between domestic and foreign subsidiaries. (2) The year ended December 31, 2017 includes an estimated $1.9 million income tax expense relating to the one-time mandatory tax on previously deferred earnings of the Company’s foreign subsidiaries as a result of the Tax Act. (3) The year ended December 31, 2017 includes an estimated $29.2 million income tax benefit resulting from the remeasurement of the Company’s domestic net deferred tax liabilities based on the new lower corporate income tax rate as a result of the Tax Act. The Company does not include foreign subsidiaries in its consolidated U.S. federal income tax return and it is the Company’s intent to indefinitely reinvest the earnings of these subsidiaries outside the U.S. At December 31, 2017, the cumulative amount of indefinitely reinvested earnings of foreign subsidiaries is $155.1 million , a portion of which has been included in the Company’s computation of the one-time mandatory tax on previously deferred earnings as a result of the Tax Act discussed above. The principal deferred tax assets and liabilities consist of the following at December 31, 2017 and 2016 (in thousands): December 31, 2017 2016 Deferred tax assets: Property and equipment in foreign jurisdictions $ 6,752 $ 5,604 Accrued fees on forfeited pawn loans 7,002 8,221 Deferred cost of goods sold deduction 2,058 1,674 Cash America nonqualified savings plan (see Note 15) — 4,685 Accrued compensation and employee benefits 1,749 3,626 Accrued Merger severance and retention — 2,718 State net operating losses (1) 6,219 — Other 5,459 8,024 Total deferred tax assets 29,239 34,552 Deferred tax liabilities: Intangible assets 55,121 75,998 Property and equipment in domestic jurisdictions 1,054 7,716 Other 2,645 2,406 Total deferred tax liabilities 58,820 86,120 Net deferred tax liabilities before valuation allowance (29,581 ) (51,568 ) Valuation allowance (1) (6,219 ) — Net deferred tax liabilities $ (35,800 ) $ (51,568 ) Reported as: Deferred tax assets $ 11,237 $ 9,707 Deferred tax liabilities (47,037 ) (61,275 ) Net deferred tax liabilities $ (35,800 ) $ (51,568 ) (1) The state net operating losses and related valuation allowance relate primarily to entities assumed in conjunction with the Merger and were identified during fiscal 2017 as a result of the Company’s finalization of the fair value of assets acquired and liabilities assumed during the twelve month measurement period from the date of the Merger, as required by applicable accounting guidance. The Company has a valuation allowance of $6.2 million as of December 31, 2017 related to the deferred tax assets associated with its state net operating losses. The Company has evaluated the nature and timing of its other deferred tax assets and concluded that no additional valuation allowance is necessary. The effective rate on net income differs from the U.S. federal statutory rate of 35% . The following is a reconciliation of such differences (dollars in thousands): Year Ended December 31, 2017 2016 2015 Tax at the U.S. federal statutory rate $ 60,309 $ 32,706 $ 30,688 State income taxes, net of federal tax benefit of $586 , $636 and $265, respectively 1,087 1,181 493 Rate benefit from foreign earnings (1) (5,442 ) (3,642 ) (3,531 ) Net tax benefit resulting from the enactment of the Tax Act (27,269 ) — — Nondeductible transaction related costs — 2,659 — Other taxes and adjustments, net (265 ) 416 (679 ) Provision for income taxes $ 28,420 $ 33,320 $ 26,971 Effective tax rate 16.5 % 35.7 % 30.8 % (1) Includes a $4.0 million , $1.5 million and $1.4 million foreign permanent tax benefit related to an inflation index adjustment allowed under Mexico tax law for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company’s foreign operating subsidiaries are owned by a wholly-owned subsidiary located in the Netherlands. The foreign operating subsidiaries are subject to their respective foreign statutory rates, which differ from the U.S. federal statutory rate. The statutory tax rates in Mexico, Guatemala and El Salvador are 30% , 25% and 30% , respectively. The statutory tax rate in the Netherlands is 0% on eligible dividends received from its foreign subsidiaries. The Company reviews the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. Interest and penalties related to income tax liabilities that could arise would be classified as interest expense in the Company’s consolidated statements of income. As of December 31, 2017 and 2016 , the Company had no unrecognized tax benefits and, therefore, the Company did no t have a liability for accrued interest and penalties and no such interest or penalties were incurred for the fiscal years ended December 31, 2017 , 2016 and 2015 . The Company does not believe its unrecognized tax benefits will significantly change over the next twelve months. The Company files federal income tax returns in the U.S., Mexico, Guatemala, El Salvador and the Netherlands, as well as multiple state and local income tax returns in the U.S. The Company’s U.S. federal returns are not subject to examination for tax years prior to 2014. The Company’s U.S. state income tax returns are not subject to examination for the tax years prior to 2014 with the exception of six states, which are not subject to examination for tax years prior to 2013. With respect to federal tax returns in Mexico, Guatemala, El Salvador and the Netherlands, the tax years prior to 2012 are closed to examination. There are no state income taxes in Mexico, Guatemala, El Salvador or the Netherlands. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Leases The Company leases certain of its facilities and equipment under operating leases with terms generally ranging from three to five years. Most facility leases contain renewal options. Remaining future minimum rentals due under non-cancelable operating leases are as follows (in thousands): Fiscal 2018 $ 102,299 2019 85,949 2020 66,046 2021 47,174 2022 26,474 Thereafter 39,654 $ 367,596 Rent expense under such leases was $117.7 million , $74.3 million and $50.0 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. As a result of the Merger, the Company recognized a favorable lease intangible asset and an unfavorable lease intangible liability related to assumed Cash America leases to the extent such leases contained favorable or unfavorable terms relative to market (together the “Lease Intangibles”). The current portion of favorable lease intangibles is included in prepaid expenses and other current assets and the non-current portion is included in other assets in the accompanying consolidated balance sheets. The current portion of unfavorable lease intangibles is included in accounts payable and accrued liabilities and the non-current portion is included in other liabilities in the accompanying consolidated balance sheets. The Lease Intangibles are amortized to rent expense, which is a component of store operating expenses, on a straight-line basis over the lives of the respective leases. The following table details amounts for the Lease Intangibles for the years ending December 31, 2017 and 2016 (in thousands): Year Ended December 31, 2017 2016 Favorable lease intangible asset $ 53,429 $ 61,875 Unfavorable lease intangible liability $ (25,367 ) $ (34,989 ) The net amortization of the Lease Intangibles reduced store operating expense by $1.0 million and $0.2 million for the years ended December 31, 2017 and 2016, respectively. Additionally, the Company closed 12 stores with Lease Intangibles during the year ended December 31, 2017 and wrote-off $0.2 million in net unfavorable lease intangibles. The remaining weighted-average amortization period for favorable and unfavorable lease intangibles is 5.1 and 2.3 years, respectively. Estimated future net amortization of the Lease Intangibles is as follows (in thousands): Fiscal 2018 $ (73 ) 2019 929 2020 1,920 2021 2,395 2022 2,906 Thereafter 19,985 $ 28,062 Litigation The Company, in the ordinary course of business, is a defendant (actual or threatened) in certain lawsuits, arbitration claims and other general claims. In management’s opinion, any potential adverse result should not have a material adverse effect on the Company’s financial position, results of operations, or cash flows. Guarantees The Company offers fee-based CSO Programs to assist consumers in obtaining extensions of credit from Independent Lenders. The Company’s CSO Programs comply with the respective jurisdiction’s credit services organization act, credit access business law or a similar statute. Under the CSO Programs, the Company assists customers in applying for a short-term extension of credit from the Independent Lenders and issues the Independent Lenders a guarantee for the repayment of the extension of credit. The extensions of credit made by the Independent Lenders to credit services customers typically range in amount from $50 to $1,500 and have terms of 7 to 365 days. The Independent Lenders are considered variable interest entities of the Company. The net loans outstanding represent less than 50% of the Independent Lenders’ total assets. In addition, the Company does not have any ownership interest in the Independent Lenders, does not exercise control over them and is not the primary beneficiary and, therefore, does not consolidate the Independent Lenders’ results with its results. The Company is required to recognize, at the inception of the guarantee, a liability for the fair value of the obligation undertaken by issuing the guarantees. According to the guarantee, if the borrower defaults on the extension of credit, the Company will pay the Independent Lenders the principal, accrued interest, insufficient funds fee and late fees, if applicable, all of which the Company records as a component of its credit loss provision. The Company is entitled to seek recovery, directly from its customers, of the amounts it pays the Independent Lenders in performing under the guarantees. The Company records the estimated fair value of the liability in accrued liabilities. The loss provision associated with the CSO Programs is based primarily upon historical loss experience, with consideration given to recent loss trends, delinquency rates, economic conditions and management’s expectations of future credit losses. The Company’s maximum loss exposure under all of the outstanding guarantees issued on behalf of its customers to the Independent Lenders as of December 31, 2017 was $10.1 million compared to $13.2 million at December 31, 2016 . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill Changes in the carrying value of goodwill by segment were as follows (in thousands): December 31, 2017 U.S. operations segment Latin America operations segment Total Balance, beginning of year $ 746,204 $ 84,947 $ 831,151 Merger and other acquisitions (see Note 3) 414 140 554 Effect of foreign currency translation — 2,061 2,061 Other adjustments (2,621 ) — (2,621 ) Balance, end of year $ 743,997 $ 87,148 $ 831,145 December 31, 2016 Balance, beginning of year $ 222,901 $ 72,708 $ 295,609 Merger and other acquisitions (see Note 3) 523,303 20,413 543,716 Effect of foreign currency translation — (8,276 ) (8,276 ) Other adjustments — 102 102 Balance, end of year $ 746,204 $ 84,947 $ 831,151 The Company performed its annual assessment of goodwill and determined there was no impairment as of December 31, 2017 and 2016 . As a result of the Company’s fiscal 2015 goodwill impairment analysis, a $7.9 million goodwill impairment charge was recorded associated with its U.S. consumer loan operations reporting unit, which is no longer a goodwill reporting unit of the Company. Therefore, accumulated goodwill impairment included in the goodwill balance at January 1, 2016 was $7.9 million . Definite-Lived Intangible Assets The following table summarizes the components of gross and net definite-lived intangibles assets subject to amortization as of December 31, 2017 and 2016 (in thousands): As of December 31, 2017 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 24,533 $ (15,256 ) $ 9,277 $ 24,452 $ (8,861 ) $ 15,591 Executive non-compete agreements 8,700 (5,800 ) 2,900 8,700 (1,450 ) 7,250 $ 33,233 $ (21,056 ) $ 12,177 $ 33,152 $ (10,311 ) $ 22,841 The customer relationships are generally amortized using an accelerated amortization method that reflects the future cash flows expected from the returning pawn customers. The executive non-compete agreements are being amortized over a straight-line basis over the life of the executive non-compete agreements. Amortization expense for definite-lived intangible assets was $10.7 million , $5.2 million and $1.8 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The remaining weighted-average amortization period for customer relationships, executive non-compete agreements and total definite-lived intangible assets is 1.5 , 0.4 and 1.3 years, respectively. Estimated future amortization expense is as follows (in thousands): Fiscal 2018 $ 6,533 2019 2,590 2020 2,053 2021 1,001 2022 — $ 12,177 Indefinite-Lived Intangible Assets The Company performed its annual assessment of indefinite-lived intangible assets and determined there was no impairment as of December 31, 2017 and 2016 . Indefinite-lived intangible assets as of December 31, 2017 and 2016 , consist of the following (in thousands): As of December 31, 2017 2016 Trade names $ 46,300 $ 46,300 Pawn licenses (1) 34,092 34,083 Franchise agreements related to check-cashing operation 1,250 1,250 $ 81,642 $ 81,633 (1) Costs to renew licenses with indefinite lives are expensed as incurred and recorded in store operating expenses in the consolidated statements of income. |
Equity Compensation Plans and S
Equity Compensation Plans and Share-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Compensation Plans and Share-Based Compensation | EQUITY COMPENSATION PLANS AND SHARE-BASED COMPENSATION The Company has previously adopted equity and share-based compensation plans to attract and retain executives, directors and key employees. Under these plans, the Company has granted qualified and non-qualified common stock options and nonvested common stock awards to officers, directors and other key employees. At December 31, 2017 , 872,000 shares were reserved for future grants to all employees and directors under the plans. Additionally, there were 2,021,000 shares reserved for future grants to current employees and directors who were not employees or directors of the Company at the date of the Merger. Nonvested Common Stock Awards (Restricted Stock Unit Awards) The Company has granted nonvested common stock awards (in the form of restricted stock units) under the Company’s equity and share-based incentive compensation plans. The restricted stock units are settled in shares of common stock upon vesting. The awards granted in 2017 include up to 117,000 shares with performance-based criteria over a three -year cumulative performance period beginning in the year of grant. The vesting performance criteria for the 2017 performance-based grants relate to growth in the Company’s net income, adjusted for certain non-core and/or non-recurring items, and total store additions over the three -year cumulative period. The awards granted in 2016 and 2015 each included 40,000 shares with performance-based criteria with four annual measurement periods beginning in each year of issuance. The vesting performance criteria for the 2016 and 2015 performance-based grants relate to growth in the Company’s EBITDA, adjusted for certain non-core and/or non-recurring items, compared to the base period, which is the fiscal year prior to the year of issuance. All other awards granted in 2017 , 2016 and 2015 vest ratably over a five or six year period from the grant date. The grant date fair value of the restricted stock units is based on the Company’s closing stock price on the day of the grant or subsequent award modification date, if applicable, and the fair value of performance-based awards is based on the maximum amount of the award expected to be achieved. The amount attributable to award grants is amortized to expense over the vesting periods. The following table summarizes the restricted stock unit award activity during 2017 , 2016 and 2015 (shares in thousands): 2017 2016 2015 Weighted- Weighted- Weighted- Average Average Average Underlying Fair Value Underlying Fair Value Underlying Fair Value Shares of Grant Shares of Grant Shares of Grant Outstanding at beginning of year 30 $ 45.93 79 $ 48.10 87 $ 48.99 Granted 137 47.57 51 42.60 45 47.08 Vested (10 ) 45.93 (100 ) 45.96 (5 ) 43.26 Canceled or forfeited — — — — (48 ) 49.26 Outstanding at end of year 157 47.36 30 45.93 79 48.10 Restricted stock unit awards vesting in 2017 , 2016 and 2015 had an aggregate intrinsic value of $0.7 million , $4.9 million and $0.2 million , respectively, based on the closing price of the Company’s stock on the date of vesting. The outstanding award units had an aggregate intrinsic value of $10.6 million at December 31, 2017 . During 2016, with the exception of 40,000 performance based awards granted in 2016 to senior executives which included double-trigger change in control provisions, the change of control provisions triggered by the Merger resulted in immediate vesting of 83,000 restricted stock unit awards outstanding as of September 1, 2016, the date of the Merger. Stock Options The Company has not issued any common stock options in the last six fiscal years. Previous option awards have been granted to purchase the Company’s common stock at an exercise price equal to or greater than the fair market value at the date of grant and generally had a maximum duration of ten years. The Company typically issues treasury shares to satisfy option exercises. Stock options outstanding as of December 31, 2017 are as follows (shares in thousands): Weighted-Average Currently Exercise Price Option Shares Remaining Life Exercisable Shares $ 38.00 40 3.9 — $ 40.00 50 3.0 20 90 3.4 20 A summary of stock option activity for the years ended December 31, 2017 , 2016 and 2015 , is as follows (shares in thousands): 2017 2016 2015 Weighted- Weighted- Weighted- Average Average Average Underlying Exercise Underlying Exercise Underlying Exercise Shares Price Shares Price Shares Price Outstanding at beginning of year 103 $ 37.34 103 $ 37.34 758 $ 20.67 Exercised (13 ) 24.57 — — (655 ) 18.06 Outstanding at end of year 90 $ 39.11 103 $ 37.34 103 $ 37.34 Exercisable at end of year 20 $ 40.00 23 $ 31.43 13 $ 24.57 At December 31, 2017 , the aggregate intrinsic value for the stock options outstanding was $2.6 million , of which $0.5 million was exercisable at the end of the year, with weighted-average remaining contractual terms of 3.4 years. The aggregate intrinsic value reflects the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the period and the exercise price of the options, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2017 . The total intrinsic value of options exercised for fiscal 2017 , 2016 and 2015 , was $0.3 million , $0.0 million and $14.6 million , respectively. The intrinsic values are based on the closing price of the Company’s stock on the date of exercise. Share-Based Compensation Expense The Company’s net income includes the following compensation costs related to share-based compensation arrangements (in thousands): Year Ended December 31, 2017 2016 2015 Gross compensation costs: Nonvested “restricted” stock 2,959 4,038 280 Stock options 110 136 149 Total gross compensation costs 3,069 4,174 429 Income tax benefits: Nonvested “restricted” stock (1) (1,036 ) (782 ) (98 ) Stock options (39 ) (48 ) (52 ) Total income tax benefits (1,075 ) (830 ) (150 ) Net compensation expense $ 1,994 $ 3,344 $ 279 Tax benefit realized from stock options exercised during the year $ — $ — $ 5,126 (1) Income tax benefit on nonvested stock compensation expense for 2016 is less than the statutory rate as a portion of the expense is not tax deductible. As of December 31, 2017 , the total compensation cost related to nonvested restricted stock unit awards not yet recognized was $4.9 million and is expected to be recognized over the weighted-average period of 1.5 years. As of December 31, 2017 , the total compensation cost related to nonvested stock options not yet recognized was $0.1 million and is expected to be recognized over the weighted-average period of 1.5 years. |
Benefit Plan
Benefit Plan | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Benefit Plans | BENEFIT PLANS The Company’s 401(k) savings plan (the “Plan”) is available to all full-time, U.S.-based, employees who have been employed with the Company for six months or longer. Effective January 1, 2017, under the Plan, a participant may contribute up to 100% of earnings, with the Company matching the first 5% of contributions at a rate of 50% . Prior to January 1, 2017, the Company matched the first 6% of contributions at a rate of 40% . The employee and Company contributions are paid to a corporate trustee and invested in various funds. Company contributions made to participants’ accounts become fully vested upon completion of five years of service. The total Company matching contributions to the Plan were $4.2 million , $2.0 million and $0.8 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Cash America had a 401(k) savings plan that was available to substantially all of its employees whereby participants could contribute up to 75% of their eligible earnings, subject to regulatory and other plan restrictions. Cash America made matching cash contributions of 50% of each participant’s contributions to the 401(k) plan, based on participant contributions of up to 5% of eligible compensation. Effective December 31, 2016, the Cash America 401(k) savings plan was merged into the Plan. Prior to the Merger, Cash America had a nonqualified savings plan that was available to certain members of management. Upon completion of the Merger, the nonqualified savings plan was terminated and during the three months ended March 31, 2017, the Company dissolved the plan and distributed the remaining assets to the participants. At December 31, 2016, the nonqualified savings plan assets were included in prepaid expenses and other current assets in the accompanying consolidated balance sheet with an offsetting liability of equal amount, which was included in accounts payable and accrued expenses in the accompanying consolidated balance sheet. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | SEGMENT AND GEOGRAPHIC INFORMATION Segment Information The Company organizes its operations into two reportable segments as follows: • U.S. operations - Includes all pawn and consumer loan operations in the U.S. • Latin America operations - Includes all pawn and consumer loan operations in Latin America, which currently includes operations in Mexico, Guatemala and El Salvador The following tables present reportable segment information for the three years ended December 31, 2017 , 2016 and 2015 as well as separately identified segment assets (in thousands): Year Ended December 31, 2017 U.S. Operations Latin America Operations Corporate Consolidated Revenue: Retail merchandise sales $ 717,490 $ 333,609 $ — $ 1,051,099 Pawn loan fees 380,596 130,309 — 510,905 Wholesale scrap jewelry sales 119,197 21,645 — 140,842 Consumer loan and credit services fees 75,209 1,767 — 76,976 Total revenue 1,292,492 487,330 — 1,779,822 Cost of revenue: Cost of retail merchandise sold 468,527 211,176 — 679,703 Cost of wholesale scrap jewelry sold 112,467 20,327 — 132,794 Consumer loan and credit services loss provision 19,431 388 — 19,819 Total cost of revenue 600,425 231,891 — 832,316 Net revenue 692,067 255,439 — 947,506 Expenses and other income: Store operating expenses 423,214 128,660 — 551,874 Administrative expenses — — 122,473 122,473 Depreciation and amortization 24,073 10,311 20,849 55,233 Interest expense — — 24,035 24,035 Interest income — — (1,597 ) (1,597 ) Merger and other acquisition expenses — — 9,062 9,062 Loss on extinguishment of debt — — 14,114 14,114 Total expenses and other income 447,287 138,971 188,936 775,194 Income (loss) before income taxes $ 244,780 $ 116,468 $ (188,936 ) $ 172,312 December 31, 2017 U.S. Latin America Corporate Consolidated Pawn loans $ 276,570 $ 68,178 $ — $ 344,748 Consumer loans, net $ 23,179 $ 343 $ — $ 23,522 Inventories $ 216,739 $ 60,032 $ — $ 276,771 Total assets $ 1,527,012 $ 282,605 $ 253,167 $ 2,062,784 Year Ended December 31, 2016 U.S. Operations Latin America Operations Corporate Consolidated Revenue: Retail merchandise sales $ 386,026 $ 283,105 $ — $ 669,131 Pawn loan fees 195,883 116,874 — 312,757 Wholesale scrap jewelry sales 47,680 14,958 — 62,638 Consumer loan and credit services fees 41,922 1,929 — 43,851 Total revenue 671,511 416,866 — 1,088,377 Cost of revenue: Cost of retail merchandise sold 241,086 177,470 — 418,556 Cost of wholesale scrap jewelry sold 41,357 11,668 — 53,025 Consumer loan and credit services loss provision 11,494 499 — 11,993 Total cost of revenue 293,937 189,637 — 483,574 Net revenue 377,574 227,229 — 604,803 Expenses and other income: Store operating expenses 215,227 112,787 — 328,014 Administrative expenses — — 96,537 96,537 Depreciation and amortization 13,618 10,429 7,818 31,865 Interest expense — — 20,320 20,320 Interest income — — (751 ) (751 ) Merger and other acquisition expenses — — 36,670 36,670 Net gain on sale of common stock of Enova — — (1,299 ) (1,299 ) Total expenses and other income 228,845 123,216 159,295 511,356 Income (loss) before income taxes $ 148,729 $ 104,013 $ (159,295 ) $ 93,447 December 31, 2016 U.S. Latin America Corporate Consolidated Pawn loans $ 293,392 $ 57,114 $ — $ 350,506 Consumer loans, net $ 28,847 $ 357 $ — $ 29,204 Inventories $ 282,860 $ 47,823 $ — $ 330,683 Total assets $ 1,637,995 $ 247,915 $ 259,293 $ 2,145,203 Year Ended December 31, 2015 U.S. Operations Latin America Operations Corporate Consolidated Revenue: Retail merchandise sales $ 197,011 $ 252,285 $ — $ 449,296 Pawn loan fees 94,761 100,687 — 195,448 Wholesale scrap jewelry sales 19,380 12,675 — 32,055 Consumer loan and credit services fees 25,696 2,107 — 27,803 Total revenue 336,848 367,754 — 704,602 Cost of revenue: Cost of retail merchandise sold 117,059 161,572 — 278,631 Cost of wholesale scrap jewelry sold 17,530 10,098 — 27,628 Consumer loan and credit services loss provision 6,770 389 — 7,159 Total cost of revenue 141,359 172,059 — 313,418 Net revenue 195,489 195,695 — 391,184 Expenses and other income: Store operating expenses 107,852 99,720 — 207,572 Administrative expenses — — 51,883 51,883 Depreciation and amortization 6,146 8,803 2,990 17,939 Interest expense — — 16,887 16,887 Interest income — — (1,566 ) (1,566 ) Merger and other acquisition expenses — — 2,875 2,875 Goodwill impairment - U.S. consumer loan operations — — 7,913 7,913 Total expenses and other income 113,998 108,523 80,982 303,503 Income (loss) before income taxes $ 81,491 $ 87,172 $ (80,982 ) $ 87,681 December 31, 2015 U.S. Latin America Corporate Consolidated Pawn loans $ 68,153 $ 49,448 $ — $ 117,601 Consumer loans, net $ 688 $ 430 $ — $ 1,118 Inventories $ 56,040 $ 37,418 $ — $ 93,458 Total assets $ 423,178 $ 218,530 $ 111,187 $ 752,895 Geographic Information The following table shows revenue and long-lived assets (all non-current assets except goodwill, intangibles, net and deferred tax assets) by geographic area (in thousands): Year Ended December 31, 2017 2016 2015 Revenue: U.S. $ 1,292,492 $ 671,511 $ 336,848 Mexico 464,161 397,549 367,754 Other Latin America 23,169 19,317 — $ 1,779,822 $ 1,088,377 $ 704,602 Long-lived assets: U.S. $ 227,659 $ 257,939 $ 65,742 Mexico 53,175 47,243 49,259 Other Latin America 3,552 2,554 1,349 $ 284,386 $ 307,736 $ 116,350 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) Summarized quarterly financial data for the fiscal years ended December 31, 2017 and 2016 , are set forth in the table below (in thousands, except per share amounts). The Company’s operations are subject to seasonal fluctuations. The Company issued 20,181,000 shares of common stock on September 1, 2016 as a result of the Merger, which significantly increased the diluted weighted average shares used in computing diluted income (loss) per share. The Company computed the quarterly diluted income per share amounts as if each quarter was a discrete period based on that quarter’s weighted average shares outstanding. As a result, the sum of the diluted earnings per share by quarter will not necessarily total the annual diluted earnings per share. Quarter Ended March 31 June 30 September 30 December 31 2017 Total revenue $ 447,576 $ 416,629 $ 435,412 $ 480,205 Total cost of revenue 204,676 192,205 204,366 231,069 Net revenue 242,900 224,424 231,046 249,136 Total expenses and other income 190,658 202,956 189,479 192,101 Net income 32,645 15,239 28,274 67,734 Diluted net income per share 0.67 0.32 0.59 1.43 Diluted weighted average shares 48,402 48,289 47,668 47,212 2016 Total revenue $ 183,203 $ 181,979 $ 261,153 $ 462,042 Total cost of revenue 81,340 80,518 113,789 207,927 Net revenue 101,863 101,461 147,364 254,115 Total expenses and other income 82,202 84,215 146,941 197,998 Net income (loss) 13,174 11,673 (1,412 ) 36,692 Diluted net income (loss) per share 0.47 0.41 (0.04 ) 0.76 Diluted weighted average shares 28,241 28,243 34,631 48,532 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation - The accompanying consolidated financial statements include the accounts of FirstCash, Inc. and its wholly-owned subsidiaries. The Company regularly makes acquisitions and the results of operations for the acquired stores have been consolidated since the acquisition dates. All significant intercompany accounts and transactions have been eliminated. See Note 3 . |
Cash and cash equivalents | Cash and cash equivalents - The Company considers any highly liquid investments with an original maturity of three months or less at the date of acquisition to be cash equivalents. As of December 31, 2017 , the amount of cash associated with indefinitely reinvested foreign earnings was $79.8 million , which is primarily held in Mexican pesos. |
Customer loans and revenue recognition | Customer loans and revenue recognition - Pawn loans typically have a term of 30 days and are secured by the customer’s pledge of tangible personal property, which the Company holds during the term of the loan. If a pawn loan defaults, the Company relies on the sale of the pawned property to recover the principal amount of an unpaid pawn loan, plus a yield on the investment, because the Company’s pawn loans are non-recourse against the customer. The customer’s creditworthiness does not affect the Company’s financial position or results of operations. The Company accrues pawn loan fee revenue on a constant-yield basis over the life of the pawn loan for all pawns for which the Company deems collection to be probable based on historical pawn redemption statistics. If the pawn loan is not repaid, the principal amount loaned becomes the carrying value of the forfeited collateral, which is recovered through sales to other customers at prices above the carrying value. The Company’s pawn merchandise sales are primarily retail sales to the general public in its pawn stores. The Company acquires pawn merchandise inventory through forfeited pawn loans and through purchases of used goods directly from the general public. The Company also retails limited quantities of new or refurbished merchandise obtained directly from wholesalers and manufacturers. The Company records sales revenue at the time of the sale. The Company presents merchandise sales net of any sales or value-added taxes collected. The Company does not provide direct financing to customers for the purchase of its merchandise, but does permit its customers to purchase merchandise on an interest-free layaway plan. Should the customer fail to make a required payment pursuant to a layaway plan, the previous payments are typically forfeited to the Company. Interim payments from customers on layaway sales are recorded as deferred revenue and subsequently recorded as retail merchandise sales revenue when the final payment is received or when previous payments are forfeited to the Company. Some jewelry is processed at third-party facilities and the precious metal and diamond content is sold at either prevailing market commodity prices or a previously agreed upon price with a commodity buyer. The Company records revenue from these wholesale scrap jewelry transactions when a price has been agreed upon and the Company ships the jewelry to the buyer. Consumer loans are unsecured cash advances and installment loans with terms that typically range from 7 to 365 days. The Company accrues consumer loan fees on a constant-yield basis over the term of the consumer loan. The Company offers fee-based credit services organization programs (“CSO Programs”) to assist consumers in obtaining extensions of credit from independent, non-bank, consumer lending companies (the “Independent Lenders”). The Company’s stand-alone consumer loan stores and select pawn stores in the states of Texas and Ohio offer the CSO Programs. The Company’s CSO Programs comply with the respective jurisdiction’s credit services organization act, credit access business law or a similar statute. The Company recognizes credit services fees ratably over the life of the extension of credit made by the Independent Lenders. The extensions of credit made by the Independent Lenders to credit services customers typically have terms of 7 to 365 days. |
Credit loss provisions | Credit loss provisions - The Company has determined no allowance related to credit losses on pawn loans is required as the fair value of the pledged collateral is significantly in excess of the pawn loan amount. The Company maintains an allowance for credit losses on consumer loans on an aggregate basis at a level it considers sufficient to cover estimated losses in the collection of its consumer loans. The allowance for credit losses is based primarily upon historical credit loss experience, with consideration given to recent credit loss trends and changes in loan characteristics (e.g., average amount financed and term), delinquency levels, collateral values, economic conditions and underwriting and collection practices. The allowance for credit losses is periodically reviewed by management with any changes reflected in current operations. The Company fully reserves or charges off consumer loans once the loan has been classified as delinquent for 60 days . Short-term loans are considered delinquent when payment of an amount due is not made as of the due date. Installment loans are considered delinquent when a customer misses two payments. If a loan is estimated to be uncollectible before it is fully reserved, it is charged off at that point. Recoveries on loans previously charged to the allowance, including the sale of delinquent loans to unaffiliated third parties, are credited to the allowance when collected or when sold to a third party. The Company generally does not accrue interest on delinquent consumer loans. In addition, delinquent consumer loans generally may not be renewed, and if, during its attempt to collect on a delinquent consumer loan, the Company allows additional time for payment through a payment plan or a promise to pay, it is still considered delinquent. Generally, all payments received are first applied against accrued but unpaid interest and fees and then against the principal balance of the loan. Under the CSO Programs, the Company assists customers in applying for a short-term extension of credit from Independent Lenders and issues the Independent Lenders a guarantee for the repayment of the extension of credit. The Company is required to recognize, at the inception of the guarantee, a liability for the fair value of the obligation undertaken by issuing the guarantee. According to the guarantee, if the borrower defaults on the extension of credit, the Company will pay the Independent Lenders the principal, accrued interest, insufficient funds and late fee, if applicable, all of which the Company records as a component of its credit loss provision. The Company is entitled to seek recovery, directly from its customers, of the amounts it pays the Independent Lenders in performing under the guarantees. The Company records the estimated fair value of the liability in accrued liabilities. The estimated fair value of the liability is periodically reviewed by management with any changes reflected in current operations. Although it is at least reasonably possible that events or circumstances could occur in the future that are not presently foreseen which could cause actual credit losses to be materially different from the recorded allowance for credit losses, the Company believes it has given appropriate consideration to all relevant factors and has made reasonable assumptions in determining the allowance for credit losses. |
Foreign Currency Transactions | Foreign currency transactions - The Company has significant operations in Latin America, where in Mexico and Guatemala the functional currency is the Mexican peso and Guatemalan quetzal, respectively. Accordingly, the assets and liabilities of these subsidiaries are translated into U.S. dollars at the exchange rate in effect at each balance sheet date, and the resulting adjustments are accumulated in other comprehensive income (loss) as a separate component of stockholders’ equity. Revenues and expenses are translated at the average exchange rates occurring during the respective fiscal period. Prior to translation, U.S. dollar-denominated transactions of the foreign subsidiaries are remeasured into their functional currency using current rates of exchange for monetary assets and liabilities and historical rates of exchange for non-monetary assets and liabilities. Gains and losses from remeasurement of dollar-denominated monetary assets and liabilities in Mexico and Guatemala are included in store operating expenses. Deferred taxes are not currently provided on cumulative foreign currency translation adjustments as the Company indefinitely reinvests earnings of its foreign subsidiaries. The Company also has operations in El Salvador where the reporting and functional currency is the U.S. dollar. The average value of the Mexican peso to the U.S. dollar exchange rate for fiscal 2017 was 18.9 to 1 , compared to 18.7 to 1 in fiscal 2016 and 15.8 to 1 in fiscal 2015 . The average value of the Guatemalan quetzal to the U.S. dollar exchange rate for fiscal 2017 was 7.4 to 1 , compared to 7.6 to 1 in fiscal 2016 and 7.7 to 1 in fiscal 2015 . |
Store operating expenses | Store operating expenses - Costs incurred in operating the pawn stores and consumer loan stores have been classified as store operating expenses. Operating expenses include salary and benefit expense of store-level employees, occupancy costs, bank charges, security, insurance, utilities, supplies and other costs incurred by the stores. |
Layaway and deferred revenue | Layaway and deferred revenue - Interim payments from customers on layaway sales are credited to deferred revenue and subsequently recorded as retail merchandise sales revenue when the final payment is received or when the previous payments are forfeited to the Company. Layaway payments from customers are included in customer deposits in the accompanying consolidated balance sheets. |
Inventories | Inventories - Inventories represent merchandise acquired from forfeited pawns and merchandise purchased directly from the general public. The Company also retails limited quantities of new or refurbished merchandise obtained directly from wholesalers and manufacturers. Inventories from forfeited pawns are recorded at the amount of the pawn principal on the unredeemed goods, exclusive of accrued interest. Inventories purchased directly from customers, wholesalers and manufacturers are recorded at cost. The cost of inventories is determined on the specific identification method. Inventories are stated at the lower of cost or net realizable value and, accordingly, inventory valuation allowances are established when inventory carrying values are in excess of estimated selling prices, net of direct costs of disposal. Management has evaluated inventories and determined that a valuation allowance is not necessary. |
Property and equipment | Property and equipment - Property and equipment are recorded at cost. Depreciation is recorded on the straight-line method generally based on estimated useful lives of 30 to 40 years for buildings and three to five years for furniture, fixtures and equipment. The costs of improvements on leased stores are capitalized as leasehold improvements and are depreciated using the straight-line method over the applicable lease period, or useful life, if shorter. Maintenance and repairs are charged to expense as incurred; renewals and betterments are charged to the appropriate property and equipment accounts. Upon sale or retirement of depreciable assets, the cost and related accumulated depreciation is removed from the accounts, and the resulting gain or loss is included in the results of operations in the period the assets are sold or retired. |
Goodwill and other indefinite-lived intangible assets | Goodwill and other indefinite-lived intangible assets - Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in each business combination. The Company performs its goodwill impairment assessment annually as of December 31, and between annual assessments if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company’s reporting units, which are tested for impairment, are U.S. operations and Latin America operations. The Company assesses goodwill for impairment at a reporting unit level by first assessing a range of qualitative factors, including, but not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for the Company’s products and services, regulatory and political developments, entity specific factors, such as strategy and changes in key personnel, and overall financial performance. If, after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company proceeds to the two-step impairment testing methodology. See Note 13 . The Company’s indefinite-lived intangible assets consist of trade names, pawn licenses and franchise agreements related to a check-cashing operation. The Company performs its indefinite-lived intangible asset impairment assessment annually as of December 31, and between annual assessments if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 13 . |
Long-lived assets | Long-lived assets - Property and equipment, intangible assets subject to amortization and non-current assets are reviewed for impairment whenever events or changes in circumstances indicate that the net book value of the asset may not be recoverable. An impairment loss is recognized if the sum of the expected future cash flows (undiscounted and before interest) from the use of the asset is less than the net book value of the asset. Generally, the amount of the impairment loss is measured as the difference between the net book value of the asset and the estimated fair value of the related asset. The Company has not recorded any material impairment loss for the fiscal years ended December 31, 2017 , 2016 and 2015 . |
Fair value of financial instruments | Fair value of financial instruments - The fair value of financial instruments is determined by reference to various market data and other valuation techniques, as appropriate. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. All fair value measurements related to acquisitions are level 3, non-recurring measurements, based on non-observable inputs. Unless otherwise disclosed, the fair values of financial instruments approximate their recorded values, due primarily to their short-term nature. See Note 6 . |
Income taxes | Income taxes - The Company uses the asset and liability method of computing deferred income taxes on all material temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. The Tax Cuts and Jobs Act (“Tax Act”), which was enacted in December 2017, had a substantial impact on the Company’s income taxes for the year ended December 31, 2017. See Note 11 . |
Advertising | Advertising - The Company expenses the costs of advertising the first time the advertising takes place. Advertising expense for the fiscal years ended December 31, 2017 , 2016 and 2015 , was $1.8 million , $1.9 million , and $0.7 million , respectively. |
Share-based compensation | Share-based compensation - All share-based payments to employees and directors are recognized in the financial statements based on the grant date or if applicable, the subsequent modification date fair value. The Company recognizes compensation cost net of estimated forfeitures and recognizes the compensation cost for only those awards expected to vest on a straight-line basis over the requisite service period of the award, which is generally the vesting term. The Company records share-based compensation cost as an administrative expense. See Note 14 . |
Earnings per share | Earnings per share - Basic income per share is computed by dividing income by the weighted-average number of shares outstanding during the year. Diluted income 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. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Year Ended December 31, 2017 2016 2015 Numerator: Net income $ 143,892 $ 60,127 $ 60,710 Denominator: Weighted-average common shares for calculating basic earnings per share 47,854 34,997 28,138 Effect of dilutive securities: Stock options and nonvested stock awards 34 7 188 Weighted-average common shares for calculating diluted earnings per share 47,888 35,004 28,326 Net income per share: Basic $ 3.01 $ 1.72 $ 2.16 Diluted $ 3.00 $ 1.72 $ 2.14 |
Pervasiveness of estimates | Pervasiveness of estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and related revenue and expenses, and the disclosure of gain and loss contingencies at the date of the financial statements. Such estimates and assumptions are subject to a number of risks and uncertainties, which may cause actual results to differ materially from the Company’s estimates. Significant estimates include allowances for doubtful accounts receivable and related credit loss provisions, impairment of goodwill and other intangible assets and current and deferred tax assets and liabilities. |
Revisions and reclassifications | |
Recent accounting pronouncements | Recent accounting pronouncements - In May 2014, the Financial Accounting Standards Board issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 is a comprehensive revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the Financial Accounting Standards Board issued ASU No. 2015-14 “Revenue from Contracts with Customers (Topic 606),” which delayed the effective date of ASU 2014-09 by one year. In addition, between March 2016 and December 2016, the Financial Accounting Standards Board issued ASU No. 2016-08, “Revenue from Contracts with Customers - Principal versus Agent Considerations (Reporting revenue gross versus net)” (“ASU 2016-08”), ASU No. 2016-10, “Identifying Performance Obligations and Licensing” (“ASU 2016-10”), ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”), and ASU No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers” (“ASU 2016-20”). ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 clarify certain aspects of ASU 2014-09 and provide additional implementation guidance. ASU 2014-09, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 (collectively, “ASC 606”) become effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2017 for public companies. Early adoption is permitted but not before annual reporting periods beginning after December 15, 2016. Entities are permitted to adopt ASC 606 using one of two methods: (a) full retrospective adoption, meaning the standard is applied to all periods presented, or (b) modified retrospective adoption, meaning the cumulative effect of applying the new standard is recognized as an adjustment to the opening retained earnings balance. The Company will adopt ASC 606 on January 1, 2018 using the modified retrospective method. The Company evaluated the impact of ASC 606 and has concluded ASC 606 will not impact the Company’s revenue recognition for pawn loan fees or consumer loan fees, as it believes neither is within the scope of ASC 606. Further, the Company has not identified any impacts to its consolidated financial statements that it believes will be material as a result of the adoption of ASC 606 for other revenue streams (retail merchandise sales, credit services fees and wholesale scrap jewelry sales). In July 2015, the Financial Accounting Standards Board issued ASU No. 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”). ASU 2015-11 requires inventory be measured at the lower of cost or net realizable value. ASU 2015-11 defines net realizable value as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Inventory measured using last-in, first-out (“LIFO”) or the retail inventory method are excluded from the scope of this update. ASU 2015-11 requires prospective application and is effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years, with early adoption permitted. The Company adopted ASU 2015-11 as of January 1, 2017, and the guidance was applied prospectively. There were no changes to the Company’s financial position, results of operations, financial statement disclosures or valuation of inventory. In February 2016, the Financial Accounting Standards Board issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 requires a lessee to recognize, in the statement of financial position, a liability to make lease payments (the lease liability) and a right-to-use asset representing its right to use the underlying asset for the lease term. Leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. Lessor accounting remains largely unchanged. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those annual periods, with early adoption permitted. An entity will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently assessing the potential impact of ASU 2016-02 on its consolidated financial statements. In June 2016, the Financial Accounting Standards Board issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. ASU 2016-13 is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently assessing the potential impact of ASU 2016-13 on its consolidated financial statements. In August 2016, the Financial Accounting Standards Board issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing existing diversity in practice. ASU 2016-15 is effective for public entities for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company does not expect ASU 2016-15 to have a material effect on its consolidated financial statements or current financial statement disclosures. In January 2017, the Financial Accounting Standards Board issued ASU No. 2017-01, “Business Combinations (Topic 805) - Clarifying the Definition of a Business” (“ASU 2017-01”). ASU 2017-01 provides amendments to clarify the definition of a business and affect all companies and other reporting organizations that must determine whether they have acquired or sold a business. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years and should be applied prospectively as of the beginning of the period of adoption. Early adoption is permitted under certain circumstances. The Company does not expect ASU 2017-01 to have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. In January 2017, the Financial Accounting Standards Board issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). These amendments eliminate step 2 from the goodwill impairment test. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017 and should be adopted on a prospective basis. The Company does not expect ASU 2017-04 to have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Calculation of Numerator and Denominator in EPS | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Year Ended December 31, 2017 2016 2015 Numerator: Net income $ 143,892 $ 60,127 $ 60,710 Denominator: Weighted-average common shares for calculating basic earnings per share 47,854 34,997 28,138 Effect of dilutive securities: Stock options and nonvested stock awards 34 7 188 Weighted-average common shares for calculating diluted earnings per share 47,888 35,004 28,326 Net income per share: Basic $ 3.01 $ 1.72 $ 2.16 Diluted $ 3.00 $ 1.72 $ 2.14 |
Merger and Other Acquisitions (
Merger and Other Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions | The following table summarizes the consideration transferred in connection with the Merger (in thousands, except ratio and per share amount): Cash America Merger Cash America shares outstanding at September 1, 2016 24,025 Exchange ratio 0.84 Shares of First Cash common stock issued 20,181 Company common stock per share price at September 1, 2016 $ 50.32 Fair value of Company common stock issued to Cash America shareholders $ 1,015,507 Cash in lieu of fractional shares paid by the Company 10 Cash America outstanding stock awards settled in cash 50,760 Aggregate Merger consideration $ 1,066,277 |
Schedule of Preliminary Allocations of Purchase Price | The following amounts represent the final determination (as of the Merger date) of the fair value of identifiable assets acquired and liabilities assumed in the Merger, including adjustments made during the twelve month measurement period from the date of the Merger (in thousands): Cash America Merger Cash and cash equivalents $ 42,520 Pawn loans 234,761 Fees and service charges receivable 26,893 Consumer loans 27,549 Inventories 224,548 Income taxes receivable 25,276 Other current assets 28,547 Investment in common stock of Enova (1) 60,785 Property and equipment 118,199 Goodwill (2) 519,418 Intangible assets (3) 103,250 Other assets 62,994 Current liabilities (95,630 ) Customer deposits (21,536 ) Revolving unsecured credit facility (4) (232,000 ) Deferred tax liabilities (27,120 ) Other liabilities (32,177 ) Aggregate Merger consideration $ 1,066,277 (1) Represents Cash America’s investment in the common stock of Enova International, Inc. (“Enova”), a publicly traded company focused on providing online consumer lending products. Prior to December 31, 2016, all of the Enova shares acquired were sold in open market transactions at an average price of $10.40 per share, which resulted in a net gain on sale of $1.3 million and generated net proceeds of $62.1 million . (2) The goodwill is attributable to the excess of the aggregate Merger consideration over the fair value of the net tangible and intangible assets acquired and liabilities assumed and is considered to represent the synergies and economies of scale expected from combining the operations of the Company and Cash America. This goodwill has been assigned to the U.S. operations reporting unit. Approximately $223.0 million of the goodwill arising from the Merger is expected to be deductible for U.S. income tax purposes. (3) Intangible assets acquired and the respective useful lives assigned consist of the following (dollars in thousands): Amount Useful life (in years) Trade names $ 46,300 Indefinite Pawn licenses 32,300 Indefinite Customer relationships 14,700 Five Executive non-compete agreements 8,700 Two Franchise agreements related to check cashing operation 1,250 Indefinite $ 103,250 The customer relationships are being amortized using an accelerated amortization method that reflects the future cash flows expected from the returning pawn customers of Cash America. The non-compete agreements are being amortized over a straight-line basis over the life of the non-compete agreements. As the trade names, pawn licenses and franchise agreements have indefinite lives, they are not amortized. (4) Represents outstanding borrowings under Cash America’s revolving unsecured credit facility that became due upon completion of the Merger. The Cash America revolving unsecured credit facility was repaid by the Company using proceeds from the 2016 Credit Facility (as described in Note 10 ) and was terminated upon completion of the Merger. In accordance with applicable accounting guidance, measurement period adjustments pertaining to the Merger were recorded during fiscal 2017 and were not retroactively reclassified to prior periods. Such measurement period adjustments were not material. Transaction costs associated with the Merger were expensed as incurred and are included in Merger and other acquisition expenses in the consolidated statements of income. These expenses included investment banking, legal, accounting, and other related third party costs associated with the Merger, including preparation for regulatory filings and shareholder approvals. See Note 4 for further information about Merger and other acquisition expenses. 2016 Other Acquisitions The Company completed other acquisitions during fiscal 2016, as described below, consistent with its strategy to continue its expansion of pawn stores in selected markets. The purchase price of each acquisition was allocated to assets acquired and liabilities assumed based upon their estimated fair market values at the date of acquisition. The excess purchase price over the estimated fair market value of the net assets acquired has been recorded as goodwill. The goodwill arising from these acquisitions consists largely of the synergies and economies of scale expected from combining the operations of the Company and the pawn stores acquired. The Company acquired the stock of Maxi Prenda, S.A. de C.V., the operating entity owning the pawn loans, inventories, layaways and other operating assets and liabilities of 166 pawn stores located in Mexico on January 6, 2016 and the assets of 13 pawn stores located in El Salvador on February 2, 2016 in related transactions (collectively the “Latin America Acquisition”). The combined purchase price for the all-cash transaction was $30.1 million , net of cash acquired before certain post-closing adjustments. Subsequent to the acquisition, $0.2 million of post closing adjustments were identified, resulting in a combined purchase price of $29.9 million , net of cash acquired and is subject to further post-closing adjustments. The purchase was composed of $27.4 million in cash paid during fiscal 2016 and remaining payables to the sellers of approximately $2.5 million . In addition, the Company assumed approximately $6.6 million in peso-denominated debt from these acquisitions which was repaid in full by the Company in January 2016. The assets, liabilities and results of operations of the locations are included in the Company’s consolidated results as of the acquisition dates. The goodwill resulting from the Latin America Acquisition has been assigned to the Latin America operations reporting unit. During fiscal 2016, three pawn stores located in the U.S. were acquired by the Company (“U.S. Acquisitions”) for an all-cash aggregate purchase price of $2.0 million , net of cash acquired. During fiscal 2016, the Company also paid $0.6 million of deferred purchase price amounts payable related to prior-year acquisitions. The goodwill resulting from the U.S. Acquisitions has been assigned to the U.S. operations reporting unit. |
Intangible Assets Acquired | Intangible assets acquired and the respective useful lives assigned consist of the following (dollars in thousands): Amount Useful life (in years) Trade names $ 46,300 Indefinite Pawn licenses 32,300 Indefinite Customer relationships 14,700 Five Executive non-compete agreements 8,700 Two Franchise agreements related to check cashing operation 1,250 Indefinite $ 103,250 |
Pro Forma Financial Information | The following unaudited supplemental pro forma financial information for the years ended December 31, 2016 and 2015 reflects the consolidated results of operations of the Company as if the Merger, the Latin America Acquisition and the U.S. Acquisitions had occurred on January 1, 2015 (in thousands, except per share amounts): Year Ended Year Ended December 31, 2016 December 31, 2015 As Reported Pro Forma As Reported Pro Forma Total revenue $ 1,088,377 $ 1,771,835 $ 704,602 $ 1,792,523 Net income 60,127 118,333 60,710 61,479 Net income per share: Basic $ 1.72 $ 2.44 $ 2.16 $ 1.27 Diluted 1.72 2.44 2.14 1.27 |
Merger and Other Acquisition 29
Merger and Other Acquisition Expenses Schedule of Merger and Other Acquisition Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Merger and Other Acquisition Expenses [Table Text Block] | The table below summarizes the major components of Merger and other acquisition expenses (in thousands): Year Ended December 31, 2017 2016 2015 Merger related expenses: Transaction (1) $ — $ 18,252 $ — Severance and retention (2) 3,897 15,229 — Other (3) 5,165 2,739 — Total Merger related expenses 9,062 36,220 — Other acquisition expenses: Transaction and integration — 450 2,875 Total other acquisition expenses — 450 2,875 Total Merger and other acquisition expenses $ 9,062 $ 36,670 $ 2,875 (1) For the year ended December 31, 2016 , the Company recognized an income tax benefit of $ 3.9 million , respectively, related to the Merger transaction expenses; a significant portion of these expenses were not deductible for income tax purposes. (2) For the year ended December 31, 2017 and 2016 , the Company made severance and retention payments of $7.4 million and $ 10.4 million , respectively, and as of December 31, 2017 and 2016 , had $1.3 million and $ 4.8 million , respectively, accrued for future payments. Accrued severance and retention is included in accounts payable and accrued expenses in the accompanying consolidated balance sheets. (3) Represents accelerated share-based compensation expense related to restricted stock awards for certain First Cash employees which vested as a result of the Merger and other integration expenses. |
Fair Value of Financial Instr30
Fair Value of Financial Instruments Fair Value, Assets Measured on Recurring Basis (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | The Company’s financial assets that were measured at fair value on a recurring basis as of December 31, 2016 were as follows (in thousands): December 31, Fair Value Measurements Using 2016 Level 1 Level 2 Level 3 Financial assets: Cash America nonqualified savings plan (see Note 15) $ 12,663 $ 12,663 $ — $ — $ 12,663 $ 12,663 $ — $ — |
Fair Value, by Balance Sheet Grouping | The Company’s financial assets and liabilities as of December 31, 2017 and 2016 that are not measured at fair value in the consolidated balance sheets are as follows (in thousands): Carrying Value Estimated Fair Value December 31, December 31, Fair Value Measurements Using 2017 2017 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 114,423 $ 114,423 $ 114,423 $ — $ — Pawn loans 344,748 344,748 — — 344,748 Consumer loans, net 23,522 23,522 — — 23,522 Fees and service charges receivable 42,736 42,736 — — 42,736 $ 525,429 $ 525,429 $ 114,423 $ — $ 411,006 Financial liabilities: Revolving unsecured credit facility $ 107,000 $ 107,000 $ — $ 107,000 $ — Senior unsecured notes, outstanding principal 300,000 314,000 — 314,000 — $ 407,000 $ 421,000 $ — $ 421,000 $ — Carrying Value Estimated Fair Value December 31, December 31, Fair Value Measurements Using 2016 2016 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 89,955 $ 89,955 $ 89,955 $ — $ — Pawn loans 350,506 350,506 — — 350,506 Consumer loans, net 29,204 29,204 — — 29,204 Fees and service charges receivable 41,013 41,013 — — 41,013 $ 510,678 $ 510,678 $ 89,955 $ — $ 420,723 Financial liabilities: Revolving unsecured credit facility $ 260,000 $ 260,000 $ — $ 260,000 $ — Senior unsecured notes, outstanding principal 200,000 208,000 — 208,000 — $ 460,000 $ 468,000 $ — $ 468,000 $ — |
Customer Loans and Valuation 31
Customer Loans and Valuation Accounts (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Consumer Loans | Customer loans, including pawn receivables and net of unearned finance fees, consist of the following (in thousands): Pawn Consumer Loan Total December 31, 2017 Total customer loans $ 344,748 $ 25,337 $ 370,085 Less allowance for doubtful accounts — (1,815 ) (1,815 ) $ 344,748 $ 23,522 $ 368,270 December 31, 2016 Total customer loans $ 350,506 $ 31,455 $ 381,961 Less allowance for doubtful accounts — (2,251 ) (2,251 ) $ 350,506 $ 29,204 $ 379,710 |
Allowance for Credit Losses | Changes in the allowance for consumer loan credit losses are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Balance at beginning of year $ 2,251 $ 66 $ 81 Provision for credit losses 12,762 6,049 808 Charge-offs, net of recoveries from customers (13,198 ) (3,864 ) (823 ) Balance at end of year $ 1,815 $ 2,251 $ 66 Under the CSO Programs, the Company assists customers in applying for a short-term extension of credit from Independent Lenders and issues the Independent Lenders a guarantee for the repayment of the extension of credit. The Company is required to recognize, at the inception of the guarantee, a liability for the fair value of the obligation undertaken by issuing the guarantee. The Company records the estimated fair value of the liability in accrued liabilities. Changes in the liability for credit services losses are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Balance at beginning of year $ 582 $ 498 $ 493 Provision for credit losses 7,057 5,944 6,351 Amounts paid to Independent Lenders under guarantees, net of recoveries from customers (7,199 ) (5,860 ) (6,346 ) Balance at end of year $ 440 $ 582 $ 498 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consists of the following (in thousands): Year Ended December 31, 2017 2016 Land $ 33,700 $ 30,364 Buildings 63,016 55,137 Furniture, fixtures, equipment and leasehold improvements 313,545 284,391 410,261 369,892 Less: accumulated depreciation (179,920 ) (133,835 ) $ 230,341 $ 236,057 |
Accounts Payable and Accrued 33
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consist of the following (in thousands): Year Ended December 31, 2017 2016 Accrued compensation $ 25,203 $ 25,285 Sales, property, and payroll withholding taxes payable 14,812 13,546 Current unfavorable lease intangible liability 7,767 9,258 Deferred CSO fees 7,560 7,776 Trade accounts payable 4,791 11,664 Benefits liabilities and withholding payable 3,465 4,501 Accrued interest payable 1,402 3,506 Merger related severance and retention payable 1,336 4,848 Liability for expected losses on outstanding CSO guarantees 440 582 Cash America nonqualified savings plan (see Note 15) — 12,663 Other accrued liabilities 17,555 15,725 $ 84,331 $ 109,354 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | As of December 31, 2017 , annual maturities of the outstanding long-term debt for each of the five years after December 31, 2017 are as follows (in thousands): Fiscal 2018 $ — 2019 — 2020 — 2021 — 2022 107,000 Thereafter 300,000 $ 407,000 |
Schedule of Debt | The following table details the Company’s long-term debt at the respective principal amounts, net of unamortized debt issuance costs (in thousands): As of December 31, 2017 2016 Senior unsecured notes: 5.375% senior notes due 2024 (1) $ 295,243 $ — 6.75% senior notes due 2021 (2) — 196,545 $ 295,243 $ 196,545 Revolving unsecured credit facility, maturing 2022 $ 107,000 $ 260,000 (1) As of December 31, 2017 , deferred debt issuance costs of $4.8 million are included as a direct deduction from the carrying amount of the senior unsecured notes due 2024 in the accompanying consolidated balance sheets. (2) As of December 31, 2016 , deferred debt issuance costs of $3.5 million are included as a direct deduction from the carrying amount of the senior unsecured notes due 2021 in the accompanying consolidated balance sheets. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Components of the provision for income taxes and the income to which it relates for the years ended December 31, 2017 , 2016 and 2015 consist of the following (in thousands): Year Ended December 31, 2017 2016 2015 Income before income taxes (1) : Domestic $ 93,365 $ 30,804 $ 27,599 Foreign 78,947 62,643 60,082 Income before income taxes $ 172,312 $ 93,447 $ 87,681 Current income taxes: Federal (2) $ 15,995 $ 1,419 $ 7,933 Foreign 23,340 18,787 18,763 State and local 968 1,139 705 Current provision for income taxes 40,303 21,345 27,401 Deferred provision (benefit) for income taxes: Federal (3) (11,509 ) 11,826 931 Foreign (1,079 ) (528 ) (1,414 ) State and local 705 677 53 Total deferred provision (benefit) for income taxes (11,883 ) 11,975 (430 ) Provision for income taxes $ 28,420 $ 33,320 $ 26,971 (1) Includes the allocation of certain administrative expenses and the payment of royalties between domestic and foreign subsidiaries. (2) The year ended December 31, 2017 includes an estimated $1.9 million income tax expense relating to the one-time mandatory tax on previously deferred earnings of the Company’s foreign subsidiaries as a result of the Tax Act. (3) The year ended December 31, 2017 includes an estimated $29.2 million income tax benefit resulting from the remeasurement of the Company’s domestic net deferred tax liabilities based on the new lower corporate income tax rate as a result of the Tax Act. |
Schedule of Deferred Tax Assets and Liabilities | The principal deferred tax assets and liabilities consist of the following at December 31, 2017 and 2016 (in thousands): December 31, 2017 2016 Deferred tax assets: Property and equipment in foreign jurisdictions $ 6,752 $ 5,604 Accrued fees on forfeited pawn loans 7,002 8,221 Deferred cost of goods sold deduction 2,058 1,674 Cash America nonqualified savings plan (see Note 15) — 4,685 Accrued compensation and employee benefits 1,749 3,626 Accrued Merger severance and retention — 2,718 State net operating losses (1) 6,219 — Other 5,459 8,024 Total deferred tax assets 29,239 34,552 Deferred tax liabilities: Intangible assets 55,121 75,998 Property and equipment in domestic jurisdictions 1,054 7,716 Other 2,645 2,406 Total deferred tax liabilities 58,820 86,120 Net deferred tax liabilities before valuation allowance (29,581 ) (51,568 ) Valuation allowance (1) (6,219 ) — Net deferred tax liabilities $ (35,800 ) $ (51,568 ) Reported as: Deferred tax assets $ 11,237 $ 9,707 Deferred tax liabilities (47,037 ) (61,275 ) Net deferred tax liabilities $ (35,800 ) $ (51,568 ) |
Schedule of Effective Income Tax Rate Reconciliation | The effective rate on net income differs from the U.S. federal statutory rate of 35% . The following is a reconciliation of such differences (dollars in thousands): Year Ended December 31, 2017 2016 2015 Tax at the U.S. federal statutory rate $ 60,309 $ 32,706 $ 30,688 State income taxes, net of federal tax benefit of $586 , $636 and $265, respectively 1,087 1,181 493 Rate benefit from foreign earnings (1) (5,442 ) (3,642 ) (3,531 ) Net tax benefit resulting from the enactment of the Tax Act (27,269 ) — — Nondeductible transaction related costs — 2,659 — Other taxes and adjustments, net (265 ) 416 (679 ) Provision for income taxes $ 28,420 $ 33,320 $ 26,971 Effective tax rate 16.5 % 35.7 % 30.8 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Remaining future minimum rentals due under non-cancelable operating leases are as follows (in thousands): Fiscal 2018 $ 102,299 2019 85,949 2020 66,046 2021 47,174 2022 26,474 Thereafter 39,654 $ 367,596 |
Schedule of Lease Intangibles | The following table details amounts for the Lease Intangibles for the years ending December 31, 2017 and 2016 (in thousands): Year Ended December 31, 2017 2016 Favorable lease intangible asset $ 53,429 $ 61,875 Unfavorable lease intangible liability $ (25,367 ) $ (34,989 ) |
Leasing | |
Lease Future Amortization Expense | Estimated future net amortization of the Lease Intangibles is as follows (in thousands): Fiscal 2018 $ (73 ) 2019 929 2020 1,920 2021 2,395 2022 2,906 Thereafter 19,985 $ 28,062 |
Goodwill and Other Intangible37
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Rollforward | Changes in the carrying value of goodwill by segment were as follows (in thousands): December 31, 2017 U.S. operations segment Latin America operations segment Total Balance, beginning of year $ 746,204 $ 84,947 $ 831,151 Merger and other acquisitions (see Note 3) 414 140 554 Effect of foreign currency translation — 2,061 2,061 Other adjustments (2,621 ) — (2,621 ) Balance, end of year $ 743,997 $ 87,148 $ 831,145 December 31, 2016 Balance, beginning of year $ 222,901 $ 72,708 $ 295,609 Merger and other acquisitions (see Note 3) 523,303 20,413 543,716 Effect of foreign currency translation — (8,276 ) (8,276 ) Other adjustments — 102 102 Balance, end of year $ 746,204 $ 84,947 $ 831,151 |
Definite Lived Intangible Assets Amortization | The following table summarizes the components of gross and net definite-lived intangibles assets subject to amortization as of December 31, 2017 and 2016 (in thousands): As of December 31, 2017 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 24,533 $ (15,256 ) $ 9,277 $ 24,452 $ (8,861 ) $ 15,591 Executive non-compete agreements 8,700 (5,800 ) 2,900 8,700 (1,450 ) 7,250 $ 33,233 $ (21,056 ) $ 12,177 $ 33,152 $ (10,311 ) $ 22,841 |
Indefinite-Lived Intangible Assets | Indefinite-lived intangible assets as of December 31, 2017 and 2016 , consist of the following (in thousands): As of December 31, 2017 2016 Trade names $ 46,300 $ 46,300 Pawn licenses (1) 34,092 34,083 Franchise agreements related to check-cashing operation 1,250 1,250 $ 81,642 $ 81,633 (1) Costs to renew licenses with indefinite lives are expensed as incurred and recorded in store operating expenses in the consolidated statements of income. |
Goodwill [Member] | |
Goodwill Future Amortization Expense | Estimated future amortization expense is as follows (in thousands): Fiscal 2018 $ 6,533 2019 2,590 2020 2,053 2021 1,001 2022 — $ 12,177 |
Equity Compensation Plans and38
Equity Compensation Plans and Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Shares Authorized under Stock Option and Warrant Plans, by Exercise Price | Stock options outstanding as of December 31, 2017 are as follows (shares in thousands): Weighted-Average Currently Exercise Price Option Shares Remaining Life Exercisable Shares $ 38.00 40 3.9 — $ 40.00 50 3.0 20 90 3.4 20 |
Schedule of Stock Options Activity | A summary of stock option activity for the years ended December 31, 2017 , 2016 and 2015 , is as follows (shares in thousands): 2017 2016 2015 Weighted- Weighted- Weighted- Average Average Average Underlying Exercise Underlying Exercise Underlying Exercise Shares Price Shares Price Shares Price Outstanding at beginning of year 103 $ 37.34 103 $ 37.34 758 $ 20.67 Exercised (13 ) 24.57 — — (655 ) 18.06 Outstanding at end of year 90 $ 39.11 103 $ 37.34 103 $ 37.34 Exercisable at end of year 20 $ 40.00 23 $ 31.43 13 $ 24.57 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The Company’s net income includes the following compensation costs related to share-based compensation arrangements (in thousands): Year Ended December 31, 2017 2016 2015 Gross compensation costs: Nonvested “restricted” stock 2,959 4,038 280 Stock options 110 136 149 Total gross compensation costs 3,069 4,174 429 Income tax benefits: Nonvested “restricted” stock (1) (1,036 ) (782 ) (98 ) Stock options (39 ) (48 ) (52 ) Total income tax benefits (1,075 ) (830 ) (150 ) Net compensation expense $ 1,994 $ 3,344 $ 279 Tax benefit realized from stock options exercised during the year $ — $ — $ 5,126 |
Schedule of Nonvested Stock Options Activity | The following table summarizes the restricted stock unit award activity during 2017 , 2016 and 2015 (shares in thousands): 2017 2016 2015 Weighted- Weighted- Weighted- Average Average Average Underlying Fair Value Underlying Fair Value Underlying Fair Value Shares of Grant Shares of Grant Shares of Grant Outstanding at beginning of year 30 $ 45.93 79 $ 48.10 87 $ 48.99 Granted 137 47.57 51 42.60 45 47.08 Vested (10 ) 45.93 (100 ) 45.96 (5 ) 43.26 Canceled or forfeited — — — — (48 ) 49.26 Outstanding at end of year 157 47.36 30 45.93 79 48.10 |
Segment and Geographic Inform39
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following tables present reportable segment information for the three years ended December 31, 2017 , 2016 and 2015 as well as separately identified segment assets (in thousands): Year Ended December 31, 2017 U.S. Operations Latin America Operations Corporate Consolidated Revenue: Retail merchandise sales $ 717,490 $ 333,609 $ — $ 1,051,099 Pawn loan fees 380,596 130,309 — 510,905 Wholesale scrap jewelry sales 119,197 21,645 — 140,842 Consumer loan and credit services fees 75,209 1,767 — 76,976 Total revenue 1,292,492 487,330 — 1,779,822 Cost of revenue: Cost of retail merchandise sold 468,527 211,176 — 679,703 Cost of wholesale scrap jewelry sold 112,467 20,327 — 132,794 Consumer loan and credit services loss provision 19,431 388 — 19,819 Total cost of revenue 600,425 231,891 — 832,316 Net revenue 692,067 255,439 — 947,506 Expenses and other income: Store operating expenses 423,214 128,660 — 551,874 Administrative expenses — — 122,473 122,473 Depreciation and amortization 24,073 10,311 20,849 55,233 Interest expense — — 24,035 24,035 Interest income — — (1,597 ) (1,597 ) Merger and other acquisition expenses — — 9,062 9,062 Loss on extinguishment of debt — — 14,114 14,114 Total expenses and other income 447,287 138,971 188,936 775,194 Income (loss) before income taxes $ 244,780 $ 116,468 $ (188,936 ) $ 172,312 December 31, 2017 U.S. Latin America Corporate Consolidated Pawn loans $ 276,570 $ 68,178 $ — $ 344,748 Consumer loans, net $ 23,179 $ 343 $ — $ 23,522 Inventories $ 216,739 $ 60,032 $ — $ 276,771 Total assets $ 1,527,012 $ 282,605 $ 253,167 $ 2,062,784 Year Ended December 31, 2016 U.S. Operations Latin America Operations Corporate Consolidated Revenue: Retail merchandise sales $ 386,026 $ 283,105 $ — $ 669,131 Pawn loan fees 195,883 116,874 — 312,757 Wholesale scrap jewelry sales 47,680 14,958 — 62,638 Consumer loan and credit services fees 41,922 1,929 — 43,851 Total revenue 671,511 416,866 — 1,088,377 Cost of revenue: Cost of retail merchandise sold 241,086 177,470 — 418,556 Cost of wholesale scrap jewelry sold 41,357 11,668 — 53,025 Consumer loan and credit services loss provision 11,494 499 — 11,993 Total cost of revenue 293,937 189,637 — 483,574 Net revenue 377,574 227,229 — 604,803 Expenses and other income: Store operating expenses 215,227 112,787 — 328,014 Administrative expenses — — 96,537 96,537 Depreciation and amortization 13,618 10,429 7,818 31,865 Interest expense — — 20,320 20,320 Interest income — — (751 ) (751 ) Merger and other acquisition expenses — — 36,670 36,670 Net gain on sale of common stock of Enova — — (1,299 ) (1,299 ) Total expenses and other income 228,845 123,216 159,295 511,356 Income (loss) before income taxes $ 148,729 $ 104,013 $ (159,295 ) $ 93,447 December 31, 2016 U.S. Latin America Corporate Consolidated Pawn loans $ 293,392 $ 57,114 $ — $ 350,506 Consumer loans, net $ 28,847 $ 357 $ — $ 29,204 Inventories $ 282,860 $ 47,823 $ — $ 330,683 Total assets $ 1,637,995 $ 247,915 $ 259,293 $ 2,145,203 Year Ended December 31, 2015 U.S. Operations Latin America Operations Corporate Consolidated Revenue: Retail merchandise sales $ 197,011 $ 252,285 $ — $ 449,296 Pawn loan fees 94,761 100,687 — 195,448 Wholesale scrap jewelry sales 19,380 12,675 — 32,055 Consumer loan and credit services fees 25,696 2,107 — 27,803 Total revenue 336,848 367,754 — 704,602 Cost of revenue: Cost of retail merchandise sold 117,059 161,572 — 278,631 Cost of wholesale scrap jewelry sold 17,530 10,098 — 27,628 Consumer loan and credit services loss provision 6,770 389 — 7,159 Total cost of revenue 141,359 172,059 — 313,418 Net revenue 195,489 195,695 — 391,184 Expenses and other income: Store operating expenses 107,852 99,720 — 207,572 Administrative expenses — — 51,883 51,883 Depreciation and amortization 6,146 8,803 2,990 17,939 Interest expense — — 16,887 16,887 Interest income — — (1,566 ) (1,566 ) Merger and other acquisition expenses — — 2,875 2,875 Goodwill impairment - U.S. consumer loan operations — — 7,913 7,913 Total expenses and other income 113,998 108,523 80,982 303,503 Income (loss) before income taxes $ 81,491 $ 87,172 $ (80,982 ) $ 87,681 December 31, 2015 U.S. Latin America Corporate Consolidated Pawn loans $ 68,153 $ 49,448 $ — $ 117,601 Consumer loans, net $ 688 $ 430 $ — $ 1,118 Inventories $ 56,040 $ 37,418 $ — $ 93,458 Total assets $ 423,178 $ 218,530 $ 111,187 $ 752,895 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following table shows revenue and long-lived assets (all non-current assets except goodwill, intangibles, net and deferred tax assets) by geographic area (in thousands): Year Ended December 31, 2017 2016 2015 Revenue: U.S. $ 1,292,492 $ 671,511 $ 336,848 Mexico 464,161 397,549 367,754 Other Latin America 23,169 19,317 — $ 1,779,822 $ 1,088,377 $ 704,602 Long-lived assets: U.S. $ 227,659 $ 257,939 $ 65,742 Mexico 53,175 47,243 49,259 Other Latin America 3,552 2,554 1,349 $ 284,386 $ 307,736 $ 116,350 |
Quarterly Financial Data (Una40
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | Quarter Ended March 31 June 30 September 30 December 31 2017 Total revenue $ 447,576 $ 416,629 $ 435,412 $ 480,205 Total cost of revenue 204,676 192,205 204,366 231,069 Net revenue 242,900 224,424 231,046 249,136 Total expenses and other income 190,658 202,956 189,479 192,101 Net income 32,645 15,239 28,274 67,734 Diluted net income per share 0.67 0.32 0.59 1.43 Diluted weighted average shares 48,402 48,289 47,668 47,212 2016 Total revenue $ 183,203 $ 181,979 $ 261,153 $ 462,042 Total cost of revenue 81,340 80,518 113,789 207,927 Net revenue 101,863 101,461 147,364 254,115 Total expenses and other income 82,202 84,215 146,941 197,998 Net income (loss) 13,174 11,673 (1,412 ) 36,692 Diluted net income (loss) per share 0.47 0.41 (0.04 ) 0.76 Diluted weighted average shares 28,241 28,243 34,631 48,532 |
Organization and Nature of th41
Organization and Nature of the Company (Details) | Dec. 31, 2017statepawn_store |
United States | |
Organization and Nature of the Company [Line Items] | |
Number of states in which entity operates | state | 26 |
Latin America Operations | |
Organization and Nature of the Company [Line Items] | |
Number of states in which entity operates | state | 32 |
Pawn store | |
Organization and Nature of the Company [Line Items] | |
Number of stores | pawn_store | 2,039 |
Consumer Loan Store | |
Organization and Nature of the Company [Line Items] | |
Number of stores | pawn_store | 72 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2017USD ($)paymentRate | Dec. 31, 2016USD ($)Rate | Dec. 31, 2015USD ($)Rate | May 30, 2017USD ($) | |
Accounting Policies [Abstract] | ||||
Cash associated with undistributed earnings of foreign subsidiaries | $ 79,800,000 | |||
Pawn loans, term | 30 days | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Threshold period past due for write-off of financing receivable | 60 days | |||
Threshold missed payments for delinquency of financing receivable | payment | 2 | |||
Debt Issuance Costs, Net | $ 4,800,000 | $ 3,500,000 | $ 5,100,000 | |
Property, Plant and Equipment [Line Items] | ||||
Goodwill impairment - U.S. consumer loan operations | 0 | 0 | $ 7,913,000 | |
Advertising expense | $ 1,800,000 | $ 1,900,000 | $ 700,000 | |
Mexico, Pesos | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Foreign Currency Exchange Rate, Translation | Rate | 1890.00% | 1870.00% | 1580.00% | |
United States of America, Dollars | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Foreign Currency Exchange Rate, Translation | Rate | 100.00% | 100.00% | 100.00% | |
Guatemala, Quetzales | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Foreign Currency Exchange Rate, Translation | Rate | 740.00% | 760.00% | ||
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Consumer loans term | 7 days | |||
Extensions of credit made by the Independent Lender to credit services customers terms | 7 days | |||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Consumer loans term | 365 days | |||
Extensions of credit made by the Independent Lender to credit services customers terms | 365 days | |||
Buildings | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment useful life (years) | 30 years | |||
Buildings | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment useful life (years) | 40 years | |||
Equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment useful life (years) | 3 years | |||
Equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment useful life (years) | 5 years |
Summary of Significant Accoun43
Summary of Significant Accounting Policies Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||||||||||
Net income | $ 67,734 | $ 28,274 | $ 15,239 | $ 32,645 | $ 36,692 | $ (1,412) | $ 11,673 | $ 13,174 | $ 143,892 | $ 60,127 | $ 60,710 |
Weighted-average common shares for calculating basic earnings per share | 47,854 | 34,997 | 28,138 | ||||||||
Stock options and nonvested stock awards | 34 | 7 | 188 | ||||||||
Weighted-average common shares for calculating diluted earnings per share | 47,212 | 47,668 | 48,289 | 48,402 | 48,532 | 34,631 | 28,243 | 28,241 | 47,888 | 35,004 | 28,326 |
Income from continuing operations (basic) (in dollars per share) | $ 3.01 | $ 1.72 | $ 2.16 | ||||||||
Loss from discontinued operations (basic) (in dollars per share) | $ 3 | $ 1.72 | $ 2.14 | ||||||||
Net income per diluted share (in dollars per share) | $ 1.43 | $ 0.59 | $ 0.32 | $ 0.67 | $ 0.76 | $ (0.04) | $ 0.41 | $ 0.47 |
Merger and Other Acquisitions N
Merger and Other Acquisitions Narrative (Details) $ / shares in Units, $ in Thousands | Sep. 01, 2016USD ($)shares | Jan. 06, 2016USD ($)store | Dec. 31, 2017USD ($)storestate$ / shares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | |||||
Net debt assumed | $ 0 | $ 6,630 | $ 0 | ||
Acquisitions of pawn stores, net of cash acquired | $ 0 | $ 8,250 | $ 0 | ||
Mexico | |||||
Business Acquisition [Line Items] | |||||
Number of stores acquired | store | 5 | ||||
United States | |||||
Business Acquisition [Line Items] | |||||
Number of stores acquired | store | 1 | ||||
Number of states in which entity operates | state | 26 | ||||
Enova International, Inc. | |||||
Business Acquisition [Line Items] | |||||
Average price of equity method investment disposed | $ / shares | $ 10.40 | ||||
Net gain on sale of Enova | $ 1,300 | ||||
Net proceeds on sale of Enova | 62,100 | ||||
Cash America Merger | |||||
Business Acquisition [Line Items] | |||||
Number of Shares | shares | 0.84 | ||||
Common stock, issued | shares | 20,181,000 | ||||
Goodwill expected to be tax deductible | $ 223,000 | ||||
Latin America Operations | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 30,100 | 29,900 | |||
Post closing adjustments to consideration transferred | 200 | ||||
Cash paid | 27,400 | ||||
Liabilities incurred | $ 2,500 | ||||
Net debt assumed | $ 6,600 | ||||
Latin America Operations | Mexico Acquisition | |||||
Business Acquisition [Line Items] | |||||
Number of stores acquired | store | 166 | ||||
Latin America Operations | El Salvador Acquisition | |||||
Business Acquisition [Line Items] | |||||
Number of stores acquired | store | 13 | ||||
U.S. Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Number of stores acquired | store | 3 | ||||
Cash paid | $ 600 | ||||
Acquisitions of pawn stores, net of cash acquired | $ 2,000 |
Merger and Other Acquisitions S
Merger and Other Acquisitions Schedule of Business Acquisitions (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 01, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Cash America shares outstanding at September 1, 2016 (in thousands) | 46,914,000 | 48,507,000 | |
Fair value of Company common stock issued to Cash America shareholders | $ 493 | $ 493 | |
Cash America Merger | |||
Business Acquisition [Line Items] | |||
Exchange ratio | 0.84 | ||
Common stock, issued | 20,181,000 | ||
Company common stock per share price at September 1, 2016 | $ 50.32 | ||
Fair value of Company common stock issued to Cash America shareholders | $ 1,015,507 | ||
Cash in lieu of fractional shares paid by the Company | 10 | ||
Cash America outstanding stock awards settled in cash | 50,760 | ||
Aggregate merger consideration | $ 1,066,277 | ||
Cash America Merger | Cash America Merger | |||
Business Acquisition [Line Items] | |||
Cash America shares outstanding at September 1, 2016 (in thousands) | 24,025,000 |
Acquisitions Purchase Price All
Acquisitions Purchase Price Allocation Table (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 01, 2016 | Jan. 06, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 831,145 | $ 831,151 | $ 295,609 | |||
Revolving unsecured credit facility | 0 | (232,000) | 0 | |||
Notes payable assumed in acquisition | $ 0 | $ (6,630) | $ 0 | |||
Cash America Merger | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 42,520 | |||||
Pawn loans | 234,761 | |||||
Fees and service charges receivable | 26,893 | |||||
Consumer loans | 27,549 | |||||
Inventory | 224,548 | |||||
Income taxes receivable | 25,276 | |||||
Other current assets | 28,547 | |||||
Investment in common stock of Enova International, Inc. | [1] | 60,785 | ||||
Property and equipment | 118,199 | |||||
Goodwill | [2] | 519,418 | ||||
Intangible assets | [3] | 103,250 | ||||
Other assets | 62,994 | |||||
Current liabilities | (95,630) | |||||
Customer deposits | (21,536) | |||||
Revolving unsecured credit facility | [4] | (232,000) | ||||
Deferred tax liabilities | (27,120) | |||||
Other liabilities | (32,177) | |||||
Aggregate merger consideration | $ 1,066,277 | |||||
Latin America Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Notes payable assumed in acquisition | $ (6,600) | |||||
[1] | Represents Cash America’s investment in the common stock of Enova International, Inc. (“Enova”), a publicly traded company focused on providing online consumer lending products. Prior to December 31, 2016, all of the Enova shares acquired were sold in open market transactions at an average price of $10.40 per share, which resulted in a net gain on sale of $1.3 million and generated net proceeds of $62.1 million. | |||||
[2] | The goodwill is attributable to the excess of the aggregate Merger consideration over the fair value of the net tangible and intangible assets acquired and liabilities assumed and is considered to represent the synergies and economies of scale expected from combining the operations of the Company and Cash America. This goodwill has been assigned to the U.S. operations reporting unit. Approximately $223.0 million of the goodwill arising from the Merger is expected to be deductible for U.S. income tax purposes. | |||||
[3] | Intangible assets acquired and the respective useful lives assigned consist of the following (dollars in thousands): Amount Useful life (in years)Trade names $46,300 IndefinitePawn licenses 32,300 IndefiniteCustomer relationships 14,700 FiveExecutive non-compete agreements 8,700 TwoFranchise agreements related to check cashing operation 1,250 Indefinite $103,250 The customer relationships are being amortized using an accelerated amortization method that reflects the future cash flows expected from the returning pawn customers of Cash America. The non-compete agreements are being amortized over a straight-line basis over the life of the non-compete agreements. As the trade names, pawn licenses and franchise agreements have indefinite lives, they are not amortized. | |||||
[4] | Represents outstanding borrowings under Cash America’s revolving unsecured credit facility that became due upon completion of the Merger. The Cash America revolving unsecured credit facility was repaid by the Company using proceeds from the 2016 Credit Facility (as described in Note 10) and was terminated upon completion of the Merger. |
Merger and Other Acquisitions47
Merger and Other Acquisitions Schedule of intangible Assets Acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | $ 81,642 | $ 81,633 |
Definite-lived Intangible Assets Acquired | 103,250 | |
Pawn licenses | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived Intangible Assets Acquired | 32,300 | |
Customer Relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived Intangible Assets Acquired | $ 14,700 | |
Useful life | 5 years | |
Executive non-compete agreements | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived Intangible Assets Acquired | $ 8,700 | |
Useful life | 2 years |
Acquisitions Pro Forma Table (D
Acquisitions Pro Forma Table (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||
Total revenue | $ 1,088,377 | $ 704,602 |
Net income | $ 60,127 | $ 60,710 |
Net income per basic share | $ 1.72 | $ 2.16 |
Net income per diluted share | $ 1.72 | $ 2.14 |
Transaction | $ 68,800 | |
Pro Forma | ||
Business Acquisition [Line Items] | ||
Total revenue | 1,771,835 | $ 1,792,523 |
Net income | $ 118,333 | $ 61,479 |
Net income per basic share | $ 2.44 | $ 1.27 |
Net income per diluted share | $ 2.44 | $ 1.27 |
Merger and Other Acquisition 49
Merger and Other Acquisition Expenses Merger and Other Acquisition Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Merger related expenses | ||||
Transaction | [1] | $ 0 | $ 18,252 | $ 0 |
Severance and retention | [2] | 3,897 | 15,229 | 0 |
Other | [3] | 5,165 | 2,739 | 0 |
Total merger related expenses | 9,062 | 36,220 | 0 | |
Other Acquisition Costs [Abstract] | ||||
Transaction and integration | 0 | 450 | 2,875 | |
Total other acquisition expenses | 0 | 450 | 2,875 | |
Total merger and other acquisition expenses | 9,062 | 36,670 | $ 2,875 | |
Acquisition related costs, income tax benefit | 3,900 | |||
Employee Severance | ||||
Other Acquisition Costs [Abstract] | ||||
Payments for Restructuring | 7,400 | 10,400 | ||
Restructuring Reserve | $ 1,300 | $ 4,800 | ||
[1] | For the year ended December 31, 2016, the Company recognized an income tax benefit of $3.9 million, respectively, related to the Merger transaction expenses; a significant portion of these expenses were not deductible for income tax purposes. | |||
[2] | For the year ended December 31, 2017 and 2016, the Company made severance and retention payments of $7.4 million and $10.4 million, respectively, and as of December 31, 2017 and 2016, had $1.3 million and $4.8 million, respectively, accrued for future payments. Accrued severance and retention is included in accounts payable and accrued expenses in the accompanying consolidated balance sheets. | |||
[3] | Represents accelerated share-based compensation expense related to restricted stock awards for certain First Cash employees which vested as a result of the Merger and other integration expenses. |
Capital Stock Narrative (Detail
Capital Stock Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 31, 2017 | May 31, 2017 | Jan. 31, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Common stock, issued | 49,276,000 | 49,276,000 | 49,276,000 | |||||
Payments of Dividends | $ 36,836 | $ 19,808 | $ 0 | |||||
2015 Share Repurchase Program | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Number of shares authorized to be repurchased | 2,000,000 | |||||||
Stock repurchased during period (shares) | 228,000 | |||||||
Stock repurchased during period (amount) | $ 10,000 | |||||||
Stock Repurchase program, Average Cost Per Share | $ 43.94 | |||||||
2017 Share Repurchase Program [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Number of shares authorized to be repurchased | 100,000,000 | 100,000,000 | ||||||
Stock repurchased during period (shares) | 239,000 | 1,388,000 | ||||||
Stock repurchased during period (amount) | $ 83,000 | |||||||
Stock Repurchase program, Average Cost Per Share | $ 59.80 | |||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 17,000 | $ 17,000 |
Fair Value of Financial Instr51
Fair Value of Financial Instruments Fair Value, Assets Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring $ in Thousands | Dec. 31, 2017USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash America nonqualified saving plan-related assets | $ 12,663 |
Total assets | 12,663 |
Fair Value Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash America nonqualified saving plan-related assets | 12,663 |
Total assets | 12,663 |
Fair Value Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash America nonqualified saving plan-related assets | 0 |
Total assets | 0 |
Fair Value Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash America nonqualified saving plan-related assets | 0 |
Total assets | $ 0 |
Fair Value of Financial Instr52
Fair Value of Financial Instruments Fair Value, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 114,423 | $ 89,955 |
Pawn loan fees and service charges receivable | 42,736 | 41,013 |
Total assets | 525,429 | 510,678 |
Total liabilities | 407,000 | 460,000 |
Carrying Value | Revolving unsecured credit facilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 107,000 | 260,000 |
Carrying Value | Senior unsecured notes, outstanding principal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 300,000 | 200,000 |
Carrying Value | Pawn Loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable | 344,748 | 350,506 |
Carrying Value | Consumer loans, net | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable | 23,522 | 29,204 |
Estimate Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 114,423 | 89,955 |
Pawn loan fees and service charges receivable | 42,736 | 41,013 |
Total assets | 525,429 | 510,678 |
Total liabilities | 421,000 | 468,000 |
Estimate Value | Revolving unsecured credit facilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 107,000 | 260,000 |
Estimate Value | Senior unsecured notes, outstanding principal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 314,000 | 208,000 |
Estimate Value | Pawn Loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable | 344,748 | 350,506 |
Estimate Value | Consumer loans, net | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable | 23,522 | 29,204 |
Estimate Value | Fair Value Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 114,423 | 89,955 |
Pawn loan fees and service charges receivable | 0 | 0 |
Total assets | 114,423 | 89,955 |
Total liabilities | 0 | 0 |
Estimate Value | Fair Value Level 1 | Revolving unsecured credit facilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 0 | 0 |
Estimate Value | Fair Value Level 1 | Senior unsecured notes, outstanding principal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 0 | 0 |
Estimate Value | Fair Value Level 1 | Pawn Loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable | 0 | 0 |
Estimate Value | Fair Value Level 1 | Consumer loans, net | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable | 0 | 0 |
Estimate Value | Fair Value Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Pawn loan fees and service charges receivable | 0 | 0 |
Total assets | 0 | 0 |
Total liabilities | 421,000 | 468,000 |
Estimate Value | Fair Value Level 2 | Revolving unsecured credit facilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 107,000 | 260,000 |
Estimate Value | Fair Value Level 2 | Senior unsecured notes, outstanding principal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 314,000 | 208,000 |
Estimate Value | Fair Value Level 2 | Pawn Loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable | 0 | 0 |
Estimate Value | Fair Value Level 2 | Consumer loans, net | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable | 0 | 0 |
Estimate Value | Fair Value Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Pawn loan fees and service charges receivable | 42,736 | 41,013 |
Total assets | 411,006 | 420,723 |
Total liabilities | 0 | 0 |
Estimate Value | Fair Value Level 3 | Revolving unsecured credit facilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 0 | 0 |
Estimate Value | Fair Value Level 3 | Senior unsecured notes, outstanding principal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 0 | 0 |
Estimate Value | Fair Value Level 3 | Pawn Loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable | 344,748 | 350,506 |
Estimate Value | Fair Value Level 3 | Consumer loans, net | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable | $ 23,522 | $ 29,204 |
Customer Loans and Valuation 53
Customer Loans and Valuation Accounts (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total customer loans | $ 370,085 | $ 381,961 |
Less allowance for doubtful accounts | (1,815) | (2,251) |
Consumer Loan, net | 368,270 | 379,710 |
Pawn Loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total customer loans | 344,748 | 350,506 |
Less allowance for doubtful accounts | 0 | 0 |
Consumer Loan, net | 344,748 | 350,506 |
Consumer Loan | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total customer loans | 25,337 | 31,455 |
Less allowance for doubtful accounts | (1,815) | (2,251) |
Consumer Loan, net | $ 23,522 | $ 29,204 |
Customer Loans and Valuation 54
Customer Loans and Valuation Accounts Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | $ 2,251 | ||
Balance at end of year | 1,815 | $ 2,251 | |
Consumer Loan | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 2,251 | 66 | $ 81 |
Provision for credit losses | 12,762 | 6,049 | 808 |
Charge-offs, net of recoveries from customers | (13,198) | (3,864) | (823) |
Balance at end of year | 1,815 | 2,251 | 66 |
CSO loan | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 582 | 498 | 493 |
Provision for credit losses | 7,057 | 5,944 | 6,351 |
Charge-offs, net of recoveries from customers | (7,199) | (5,860) | (6,346) |
Balance at end of year | $ 440 | $ 582 | $ 498 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 410,261 | $ 369,892 | |
Less: accumulated depreciation | (179,920) | (133,835) | |
Property and equipment, net | 230,341 | 236,057 | |
Depreciation, Nonproduction | 44,500 | 26,600 | $ 16,100 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 33,700 | 30,364 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 63,016 | 55,137 | |
Furniture, fixtures, equipment and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 313,545 | $ 284,391 |
Accounts Payable and Accrued 56
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 25,203 | $ 25,285 |
Sales, property, and payroll withholding taxes payable | 14,812 | 13,546 |
Current unfavorable lease intangible liability | 7,767 | 9,258 |
Deferred CSO fees | 7,560 | 7,776 |
Trade accounts payable | 4,791 | 11,664 |
Benefits liabilities and withholding payable | 3,465 | 4,501 |
Accrued interest payable | 1,402 | 3,506 |
Merger related severance and retention payable | 1,336 | 4,848 |
Liability for expected losses on outstanding CSO guarantees | 440 | 582 |
Cash America nonqualified savings plan (see Note 15) | 0 | 12,663 |
Other accrued liabilities | 17,555 | 15,725 |
Accounts payable and accrued liabilities | $ 84,331 | $ 109,354 |
Long-Term Debt Schedule of Debt
Long-Term Debt Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 407,000 | |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 295,243 | $ 196,545 |
Senior Notes | 5.375% senior notes due 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 295,243 | 0 |
Senior Notes | 6.75% senior notes due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 196,545 |
Line of Credit | 2016 Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 107,000 | $ 260,000 |
Long-Term Debt (Details)
Long-Term Debt (Details) | May 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | |||||
Debt Issuance Costs, Net | $ 5,100,000 | $ 4,800,000 | $ 4,800,000 | $ 3,500,000 | |
Amount outstanding | 107,000,000 | 107,000,000 | |||
Letters of Credit Outstanding, Amount | $ 10,100,000 | $ 10,100,000 | 13,200,000 | ||
Debt Covenant, Total Debt Ratio Threshold | 2.25 | 2.25 | |||
Gain (Loss) on Extinguishment of Debt | $ (14,114,000) | 0 | $ 0 | ||
Repurchase/redemption premiums on senior unsecured notes | (10,895,000) | 0 | 0 | ||
Write off of Deferred Debt Issuance Cost | $ 3,200,000 | ||||
Repayments of debt | 359,000,000 | 198,000,000 | $ 84,400,000 | ||
Senior notes 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | ||||
2016 Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 400,000,000 | ||||
Line of Credit | 2016 Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Letters of Credit Outstanding, Amount | $ 5,100,000 | 5,100,000 | |||
Remaining borrowing capacity | $ 287,900,000 | $ 287,900,000 | |||
Interest rate at period end | 4.00% | 4.00% | |||
Commitment fee percentage | 0.50% | ||||
Repayments of debt | $ 153,000,000 | ||||
Line of Credit | 2016 Credit Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.50% | ||||
Line of Credit | 2016 Credit Facility | Prime Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Minimum | 2016 Credit Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | 0.00% | |||
First Cash | Senior notes 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Face Amount | $ 300,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | ||||
Restriction on Payments for Share Repurchases and Dividends | $ 100,000,000 | ||||
First Cash | Senior notes 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Face Amount | $ 200,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | ||||
Debt Instrument, Redemption, Period One [Member] | Senior notes 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||
Debt Instrument, Redemption, Period Two [Member] | Senior notes 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage | 105.375% | ||||
Debt Instrument, Redemption, Period Three [Member] | Senior notes 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage | 101.00% |
Long-Term Debt Schedule of Matu
Long-Term Debt Schedule of Maturities for Long-term Debt (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 0 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
2,020 | 107,000 |
Thereafter | 300,000 |
Total Long-term Debt | $ 407,000 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($)state | Dec. 31, 2017USD ($)state | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Entity Location [Line Items] | ||||
Deferred Tax Assets, Valuation Allowance | $ 6,219,000 | $ 6,219,000 | $ 0 | |
Tax Cuts and Jobs Act of 2017, Provisional income tax expense (benefit) | 27,300,000 | |||
Tax Cuts And Jobs Act of 2017, deferred tax liability, provisional income tax (expense) benefit | 29,200,000 | 29,200,000 | ||
Tax on previously deferred earnings of foreign subsidiaries | 1,900,000 | 1,900,000 | ||
Undistributed Earnings of Foreign Subsidiaries | 155,100,000 | $ 155,100,000 | ||
Income tax benefit, percent of likelihood of being realized upon settlement | 5000.00% | |||
Unrecognized tax benefits | 0 | $ 0 | 0 | |
Income tax penalties and interest accrued | $ 0 | 0 | 0 | |
Income tax penalties and interest expense | $ 0 | $ 0 | $ 0 | |
Number of states subject to examination in years prior to 2010 | state | 6 | 6 | ||
United States | ||||
Entity Location [Line Items] | ||||
Federal statutory income tax rate | 35.00% | |||
Mexico | ||||
Entity Location [Line Items] | ||||
Federal statutory income tax rate | 30.00% | |||
Guatemala | ||||
Entity Location [Line Items] | ||||
Federal statutory income tax rate | 25.00% | |||
EL Salvador | ||||
Entity Location [Line Items] | ||||
Federal statutory income tax rate | 30.00% |
Provision for Income Taxes (Det
Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Income from continuing operations before income taxes | |||||
Domestic | [1] | $ 93,365 | $ 30,804 | $ 27,599 | |
Foreign | [1] | 78,947 | 62,643 | 60,082 | |
Income before income taxes | [1] | 172,312 | 93,447 | 87,681 | |
Current income taxes: | |||||
Federal (2) | 15,995 | 1,419 | 7,933 | ||
Foreign | 23,340 | 18,787 | 18,763 | ||
State and local | 968 | 1,139 | 705 | ||
Current provision for income taxes | 40,303 | 21,345 | 27,401 | ||
Deferred provision (benefit) for income taxes: | |||||
Federal (3) | (11,509) | 11,826 | 931 | ||
Foreign | (1,079) | (528) | (1,414) | ||
State and local | 705 | 677 | 53 | ||
Total deferred provision (benefit) for income taxes | (11,883) | 11,975 | (430) | ||
Provision for income taxes | 28,420 | $ 33,320 | $ 26,971 | ||
Tax on previously deferred earnings of foreign subsidiaries | $ 1,900 | 1,900 | |||
Tax Cuts And Jobs Act of 2017, deferred tax liability, provisional income tax (expense) benefit | $ 29,200 | $ 29,200 | |||
[1] | Includes the allocation of certain administrative expenses and the payment of royalties between domestic and foreign subsidiaries. |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Property and equipment in foreign jurisdictions | $ 6,752 | $ 5,604 |
Accrued fees on forfeited pawn loans | 7,002 | 8,221 |
Deferred cost of goods sold deduction | 2,058 | 1,674 |
Cash America nonqualified savings plan (see Note 15) | 0 | 4,685 |
Accrued compensation and employee benefits | 1,749 | 3,626 |
Accrued Merger severance and retention | 0 | 2,718 |
State net operating losses | 6,219 | 0 |
Other | 5,459 | 8,024 |
Total deferred tax assets | 29,239 | 34,552 |
Deferred tax liabilities: | ||
Intangible assets | 55,121 | 75,998 |
Property and equipment in domestic jurisdictions | 1,054 | 7,716 |
Other | 2,645 | 2,406 |
Total deferred tax liabilities | 58,820 | 86,120 |
Net deferred tax liabilities before valuation allowance | 29,581 | 51,568 |
Valuation allowance | (6,219) | 0 |
Net deferred tax liabilities | (35,800) | (51,568) |
Deferred tax assets | 11,237 | 9,707 |
Deferred tax liabilities | $ (47,037) | $ (61,275) |
Income Tax Reconciliation (Deta
Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Tax at the U.S. federal statutory rate | $ 60,309 | $ 32,706 | $ 30,688 |
State income taxes, net of federal tax benefit of $586, $636 and $265, respectively | 1,087 | 1,181 | 493 |
Rate benefit from foreign earnings (1) | (5,442) | (3,642) | (3,531) |
Net tax benefit resulting from the enactment of the Tax Act | (27,269) | 0 | 0 |
Nondeductible transaction related costs | 0 | 2,659 | 0 |
Other taxes and adjustments, net | (265) | 416 | (679) |
Provision for income taxes | $ 28,420 | $ 33,320 | $ 26,971 |
Effective tax rate | 16.50% | 35.70% | 30.80% |
Federal Income tax benefit for state income taxes | $ 586 | $ 636 | $ 265 |
Foreign inflation index adjustment | $ 4,000 | $ 1,500 | $ 1,400 |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)store | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Guarantor Obligations [Line Items] | |||
Rent expense on operating leases | $ 117,700,000 | $ 74,300,000 | $ 50,000,000 |
Current unfavorable lease intangible liability | 7,767,000 | 9,258,000 | |
Amortization of leased asset | $ 1,000,000 | 200,000 | |
Number of stores closed with lease intangible assets | store | 12 | ||
Write-offs of unfavorable lease intangibles | $ 200,000 | ||
Maximum loss exposure under outstanding letters of credit | $ 10,100,000 | $ 13,200,000 | |
Variable Interest Entity, Not Primary Beneficiary | |||
Guarantor Obligations [Line Items] | |||
Net loans as a percentage of variable interest entity's total assets, maximum | 50.00% | ||
Minimum | |||
Guarantor Obligations [Line Items] | |||
Operating leases term | 3 years | ||
Extensions of credit made by the Independent Lender to credit services customers terms | 7 days | ||
Extensions of credit made by the Independent Lender to credit services customers amount range | $ 50 | ||
Maximum | |||
Guarantor Obligations [Line Items] | |||
Operating leases term | 5 years | ||
Extensions of credit made by the Independent Lender to credit services customers terms | 365 days | ||
Extensions of credit made by the Independent Lender to credit services customers amount range | $ 1,500 | ||
Above Market Leases | |||
Guarantor Obligations [Line Items] | |||
Remaining amortization period | 5 years 1 month 6 days | ||
Below Market Leases [Member] | |||
Guarantor Obligations [Line Items] | |||
Remaining amortization period | 2 years 3 months 18 days |
Operating Leases Future Minimum
Operating Leases Future Minimum Payments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 102,299 |
2,018 | 85,949 |
2,019 | 66,046 |
2,020 | 47,174 |
2,021 | 26,474 |
Thereafter | 39,654 |
Total | $ 367,596 |
Commitments and Contingencies E
Commitments and Contingencies Estimated Lease Future Amortization Expenses (Details) - Lease $ in Thousands | Dec. 31, 2017USD ($) |
2,017 | $ (73) |
2,018 | 929 |
2,019 | 1,920 |
2,020 | 2,395 |
2,021 | 2,906 |
Thereafter | 19,985 |
Total future amortization | $ 28,062 |
Commitments and Contingencies S
Commitments and Contingencies Schedule of Lease Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Unfavorable lease intangible liability | $ (25,367) | $ (34,989) |
Above Market Leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Favorable lease intangible asset | $ 53,429 | $ 61,875 |
Goodwill and Other Intangible68
Goodwill and Other Intangible Assets Rollforward (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | |||
Balance, beginning of year | $ 831,151,000 | $ 295,609,000 | |
Merger and other acquisitions | 554,000 | 543,716,000 | |
Effect of foreign currency translation | 2,061,000 | (8,276,000) | |
Other adjustments | (2,621,000) | 102,000 | |
Balance, end of year | 831,145,000 | 831,151,000 | $ 295,609,000 |
Goodwill impairment | 0 | 0 | 7,913,000 |
United States | |||
Goodwill [Line Items] | |||
Balance, beginning of year | 746,204,000 | 222,901,000 | |
Merger and other acquisitions | 414,000 | 523,303,000 | |
Effect of foreign currency translation | 0 | 0 | |
Other adjustments | (2,621,000) | 0 | |
Balance, end of year | 743,997,000 | 746,204,000 | 222,901,000 |
Latin America Operations | |||
Goodwill [Line Items] | |||
Balance, beginning of year | 84,947,000 | 72,708,000 | |
Merger and other acquisitions | 140,000 | 20,413,000 | |
Effect of foreign currency translation | 2,061,000 | (8,276,000) | |
Other adjustments | 0 | 102,000 | |
Balance, end of year | $ 87,148,000 | $ 84,947,000 | $ 72,708,000 |
Goodwill and Other Intangible69
Goodwill and Other Intangible Assets Intangible Assets Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 33,233 | $ 33,152 | |
Accumulated Amortization | (21,056) | (10,311) | |
Net Carrying Amount | 12,177 | 22,841 | |
Amortization expenses of intangible assets | $ 10,700 | 5,200 | $ 1,800 |
Weighted average amortization period remaining, in years | 1 year 3 months 18 days | ||
Customer Relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 24,533 | 24,452 | |
Accumulated Amortization | (15,256) | (8,861) | |
Net Carrying Amount | $ 9,277 | 15,591 | |
Weighted average amortization period remaining, in years | 1 year 6 months | ||
Executive non-compete agreements | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 8,700 | 8,700 | |
Accumulated Amortization | (5,800) | (1,450) | |
Net Carrying Amount | $ 2,900 | $ 7,250 | |
Weighted average amortization period remaining, in years | 4 months 24 days |
Goodwill and Other Intangible70
Goodwill and Other Intangible Assets Goodwill Future Amortization (Details) - Goodwill [Member] $ in Thousands | Dec. 31, 2017USD ($) |
2,017 | $ 6,533 |
2,018 | 2,590 |
2,019 | 2,053 |
2,020 | 1,001 |
2,021 | 0 |
Total future amortization | $ 12,177 |
Goodwill and Other Intangible71
Goodwill and Other Intangible Assets Indefinite-Lived Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairment of intangible assets,indefinite-lived | $ 0 | $ 0 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-Lived Intangible Assets | 81,642,000 | 81,633,000 | |
Trade Names | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-Lived Intangible Assets | 46,300,000 | 46,300,000 | |
Pawn licenses | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-Lived Intangible Assets | [1] | 34,092,000 | 34,083,000 |
Franchise agreements related to check-cashing operation | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-Lived Intangible Assets | $ 1,250,000 | $ 1,250,000 | |
[1] | (1) Costs to renew licenses with indefinite lives are expensed as incurred and recorded in store operating expenses in the consolidated statements of income. |
Equity Compensation Plans and72
Equity Compensation Plans and Share-Based Compensation Narrative (Details) $ in Millions | Sep. 01, 2016shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted (shares) | shares | 137,000 | 51,000 | 45,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options and Warrants, Additional Disclosures [Abstract] | ||||
Options and warrants outstanding, intrinsic value | $ 2.6 | |||
Options and warrants exercisable, intrinsic value | $ 0.5 | |||
Options and warrants outstanding, weighted average remaining contractual term (years) | 3 years 4 months 30 days | |||
Options and warrants exercises in period, total intrinsic value | $ 0.3 | $ 0 | $ 14.6 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | ||||
Shares issued in period | shares | 83,000 | 40,000 | ||
Total compensation cost not yet recognized, nonvested stock options | $ 0.1 | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted (shares) | shares | 117,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | ||||
Vesting period | 3 years | |||
Stock Options and Warrants | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Stock options | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | ||||
Weighted-average period of recognition (years) | 1 year 6 months | |||
Nonvested “restricted” stock | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | ||||
Total intrinsic value for nonvested common stock awards vested during period | $ 0.7 | $ 4.9 | $ 0.2 | |
Total intrinsic value for nonvested common stock awards outstanding | $ 10.6 | |||
Weighted-average period of recognition (years) | 1 year 6 months 9 days | |||
Total compensation cost not yet recognized, nonvested common stock awards | $ 4.9 | |||
Nonvested “restricted” stock | Measurement period beginning 2014 through 2018 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | ||||
Shares issued in period | shares | 40,000 | |||
Nonvested stock, number of annual performance measurement periods | 4 | |||
Nonvested “restricted” stock | Minimum | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | ||||
Vesting period | 5 years | |||
Nonvested “restricted” stock | Maximum | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | ||||
Vesting period | 6 years | |||
Prior to merger [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for grant | shares | 872,000 | |||
After merger [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for grant | shares | 2,021,000 |
Warrants and Options Exercise P
Warrants and Options Exercise Prices and Remaining Life (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Schedule of Share-based Compensation, Shares Authorized under Stock Options Plans and Warrants, by Exercise Price [Line Items] | |
Options | 90 |
Weighted-Average Remaining Life (years) | 3 years 4 months 24 days |
Currently Exercisable (shares) | 20 |
Exercise Price, $38.00 | |
Schedule of Share-based Compensation, Shares Authorized under Stock Options Plans and Warrants, by Exercise Price [Line Items] | |
Exercise Price | $ / shares | $ 38 |
Options | 40 |
Weighted-Average Remaining Life (years) | 3 years 10 months 24 days |
Currently Exercisable (shares) | 0 |
Exercise Price, $40.00 | |
Schedule of Share-based Compensation, Shares Authorized under Stock Options Plans and Warrants, by Exercise Price [Line Items] | |
Exercise Price | $ / shares | $ 40 |
Options | 50 |
Weighted-Average Remaining Life (years) | 3 years |
Currently Exercisable (shares) | 20 |
Warranty and Options Activity (
Warranty and Options Activity (Details) - Stock Options and Warrants - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options and Warrants, Outstanding [Roll Forward] | |||
Underlying Shares - Outstanding at beginning of year | 103 | 103 | 758 |
Underlying Shares - Exercised | (13) | 0 | (655) |
Underlying Shares - Outstanding at end of year | 90 | 103 | 103 |
Underlying Shares - Exercisable at end of year | 20 | 23 | 13 |
Share-based Compensation Arrangement by Share-based Payment Award, Options and Warrants, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Weighted-Average Exercise Price - Outstanding at beginning of year | $ 37.34 | $ 37.34 | $ 20.67 |
Weighted-Average Exercise Price - Exercised | 24.57 | 0 | 18.06 |
Weighted-Average Exercise Price - Outstanding at end of year | 39.11 | 37.34 | 37.34 |
Weighted-Average Exercise Price - Exercisable at end of year | $ 40 | $ 31.43 | $ 24.57 |
Nonvested Common Stock Awards A
Nonvested Common Stock Awards Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Underlying Shares - Outstanding at beginning of year | 30 | 79 | 87 |
Underlying Shares - Granted | 137 | 51 | 45 |
Underlying Shares - Exercised | (10) | (100) | (5) |
Underlying Shares - Canceled or forfeited | 0 | 0 | (48) |
Underlying Shares - Outstanding at end of year | 157 | 30 | 79 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Weighted-Average Exercise Price - Outstanding at beginning of year | $ 45.93 | $ 48.10 | $ 48.99 |
Weighted-Average Exercise Price - Granted | 47.57 | 42.60 | 47.08 |
Weighted-Average Exercise Price - Vested | 45.93 | 45.96 | 43.26 |
Weighted-Average Exercise Price - Canceled or forfeited | 0 | 0 | 49.26 |
Weighted-Average Exercise Price - Outstanding at end of year | $ 47.36 | $ 45.93 | $ 48.10 |
Share-based Compensation Alloca
Share-based Compensation Allocation of Period Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Gross compensation costs: | $ 3,069 | $ 4,174 | $ 429 |
Income tax benefits: | (1,075) | (830) | (150) |
Net compensation expense | 1,994 | 3,344 | 279 |
Tax benefit realized from stock options exercised during the year | 0 | 0 | 5,126 |
Stock options | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Gross compensation costs: | 110 | 136 | 149 |
Income tax benefits: | (39) | (48) | (52) |
Nonvested “restricted” stock | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total compensation cost not yet recognized, nonvested common stock awards | 4,900 | ||
Gross compensation costs: | 2,959 | 4,038 | 280 |
Income tax benefits: | $ (1,036) | $ (782) | $ (98) |
Benefit Plan (Details)
Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Maximum annual contribution per employee | 100.00% | ||
Vesting period for company contributions | 5 years | ||
Employer contribution amount | $ 4.2 | $ 2 | $ 0.8 |
Minimum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Vesting period until participation in 401(k) | 6 months | ||
First Cash | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution | 5.00% | 6.00% | |
Rate of employer match | 50.00% | 40.00% | |
Cash America | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution | 5.00% | ||
Rate of employer match | 50.00% | ||
Qualified savings plan [Member] | Cash America | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Maximum annual contribution per employee | 75.00% |
Segment and Geographic Inform78
Segment and Geographic Information (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Schedule of Revenues from External Customers and Assets [Line Items] | |||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Revenue: | |||||||||||
Retail merchandise sales | $ 1,051,099,000 | $ 669,131,000 | $ 449,296,000 | ||||||||
Pawn loan fees | 510,905,000 | 312,757,000 | 195,448,000 | ||||||||
Consumer loan and credit services fees | 76,976,000 | 43,851,000 | 27,803,000 | ||||||||
Wholesale scrap jewelry sales | 140,842,000 | 62,638,000 | 32,055,000 | ||||||||
Total revenue | $ 480,205,000 | $ 435,412,000 | $ 416,629,000 | $ 447,576,000 | $ 462,042,000 | $ 261,153,000 | $ 181,979,000 | $ 183,203,000 | 1,779,822,000 | 1,088,377,000 | 704,602,000 |
Cost of revenue: | |||||||||||
Cost of retail merchandise sold | 679,703,000 | 418,556,000 | 278,631,000 | ||||||||
Consumer loan and credit services loss provision | 19,819,000 | 11,993,000 | 7,159,000 | ||||||||
Cost of wholesale scrap jewelry sold | 132,794,000 | 53,025,000 | 27,628,000 | ||||||||
Total cost of revenue | 231,069,000 | 204,366,000 | 192,205,000 | 204,676,000 | 207,927,000 | 113,789,000 | 80,518,000 | 81,340,000 | 832,316,000 | 483,574,000 | 313,418,000 |
Net revenue | 249,136,000 | 231,046,000 | 224,424,000 | 242,900,000 | 254,115,000 | 147,364,000 | 101,461,000 | 101,863,000 | 947,506,000 | 604,803,000 | 391,184,000 |
Expenses and other income: | |||||||||||
Store operating expenses | 551,874,000 | 328,014,000 | 207,572,000 | ||||||||
Administrative expenses | 122,473,000 | 96,537,000 | 51,883,000 | ||||||||
Depreciation and amortization | 55,233,000 | 31,865,000 | 17,939,000 | ||||||||
Interest expense | 24,035,000 | 20,320,000 | 16,887,000 | ||||||||
Interest income | (1,597,000) | (751,000) | (1,566,000) | ||||||||
Merger and other acquisition expenses | 9,062,000 | 36,670,000 | 2,875,000 | ||||||||
Gain (Loss) on Extinguishment of Debt | 14,114,000 | 0 | 0 | ||||||||
Goodwill impairment - U.S. consumer loan operations | 0 | 0 | 7,913,000 | ||||||||
Net gain on sale of common stock of Enova | 0 | (1,299,000) | 0 | ||||||||
Total expenses and other income | 192,101,000 | $ 189,479,000 | $ 202,956,000 | $ 190,658,000 | 197,998,000 | $ 146,941,000 | $ 84,215,000 | $ 82,202,000 | 775,194,000 | 511,356,000 | 303,503,000 |
Income before income taxes | 172,312,000 | 93,447,000 | 87,681,000 | ||||||||
Pawn loans | 344,748,000 | 350,506,000 | 344,748,000 | 350,506,000 | 117,601,000 | ||||||
Consumer loans, net | 23,522,000 | 29,204,000 | 23,522,000 | 29,204,000 | 1,118,000 | ||||||
Inventories | 276,771,000 | 330,683,000 | 276,771,000 | 330,683,000 | 93,458,000 | ||||||
Total assets | 2,062,784,000 | 2,145,203,000 | 2,062,784,000 | 2,145,203,000 | 752,895,000 | ||||||
U.S. Operations | |||||||||||
Revenue: | |||||||||||
Retail merchandise sales | 717,490,000 | 386,026,000 | 197,011,000 | ||||||||
Pawn loan fees | 380,596,000 | 195,883,000 | 94,761,000 | ||||||||
Consumer loan and credit services fees | 75,209,000 | 41,922,000 | 25,696,000 | ||||||||
Wholesale scrap jewelry sales | 119,197,000 | 47,680,000 | 19,380,000 | ||||||||
Total revenue | 1,292,492,000 | 671,511,000 | 336,848,000 | ||||||||
Cost of revenue: | |||||||||||
Cost of retail merchandise sold | 468,527,000 | 241,086,000 | 117,059,000 | ||||||||
Consumer loan and credit services loss provision | 19,431,000 | 11,494,000 | 6,770,000 | ||||||||
Cost of wholesale scrap jewelry sold | 112,467,000 | 41,357,000 | 17,530,000 | ||||||||
Total cost of revenue | 600,425,000 | 293,937,000 | 141,359,000 | ||||||||
Net revenue | 692,067,000 | 377,574,000 | 195,489,000 | ||||||||
Expenses and other income: | |||||||||||
Store operating expenses | 423,214,000 | 215,227,000 | 107,852,000 | ||||||||
Administrative expenses | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 24,073,000 | 13,618,000 | 6,146,000 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Interest income | 0 | 0 | 0 | ||||||||
Merger and other acquisition expenses | 0 | 0 | 0 | ||||||||
Gain (Loss) on Extinguishment of Debt | 0 | ||||||||||
Goodwill impairment - U.S. consumer loan operations | 0 | ||||||||||
Net gain on sale of common stock of Enova | 0 | ||||||||||
Total expenses and other income | 447,287,000 | 228,845,000 | 113,998,000 | ||||||||
Income before income taxes | 244,780,000 | 148,729,000 | 81,491,000 | ||||||||
Pawn loans | 276,570,000 | 293,392,000 | 276,570,000 | 293,392,000 | 68,153,000 | ||||||
Consumer loans, net | 23,179,000 | 28,847,000 | 23,179,000 | 28,847,000 | 688,000 | ||||||
Inventories | 216,739,000 | 282,860,000 | 216,739,000 | 282,860,000 | 56,040,000 | ||||||
Total assets | 1,527,012,000 | 1,637,995,000 | 1,527,012,000 | 1,637,995,000 | 423,178,000 | ||||||
Latin America Operations | |||||||||||
Revenue: | |||||||||||
Retail merchandise sales | 333,609,000 | 283,105,000 | 252,285,000 | ||||||||
Pawn loan fees | 130,309,000 | 116,874,000 | 100,687,000 | ||||||||
Consumer loan and credit services fees | 1,767,000 | 1,929,000 | 2,107,000 | ||||||||
Wholesale scrap jewelry sales | 21,645,000 | 14,958,000 | 12,675,000 | ||||||||
Total revenue | 487,330,000 | 416,866,000 | 367,754,000 | ||||||||
Cost of revenue: | |||||||||||
Cost of retail merchandise sold | 211,176,000 | 177,470,000 | 161,572,000 | ||||||||
Consumer loan and credit services loss provision | 388,000 | 499,000 | 389,000 | ||||||||
Cost of wholesale scrap jewelry sold | 20,327,000 | 11,668,000 | 10,098,000 | ||||||||
Total cost of revenue | 231,891,000 | 189,637,000 | 172,059,000 | ||||||||
Net revenue | 255,439,000 | 227,229,000 | 195,695,000 | ||||||||
Expenses and other income: | |||||||||||
Store operating expenses | 128,660,000 | 112,787,000 | 99,720,000 | ||||||||
Administrative expenses | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 10,311,000 | 10,429,000 | 8,803,000 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Interest income | 0 | 0 | 0 | ||||||||
Merger and other acquisition expenses | 0 | 0 | 0 | ||||||||
Gain (Loss) on Extinguishment of Debt | 0 | ||||||||||
Goodwill impairment - U.S. consumer loan operations | 0 | ||||||||||
Net gain on sale of common stock of Enova | 0 | ||||||||||
Total expenses and other income | 138,971,000 | 123,216,000 | 108,523,000 | ||||||||
Income before income taxes | 116,468,000 | 104,013,000 | 87,172,000 | ||||||||
Pawn loans | 68,178,000 | 57,114,000 | 68,178,000 | 57,114,000 | 49,448,000 | ||||||
Consumer loans, net | 343,000 | 357,000 | 343,000 | 357,000 | 430,000 | ||||||
Inventories | 60,032,000 | 47,823,000 | 60,032,000 | 47,823,000 | 37,418,000 | ||||||
Total assets | 282,605,000 | 247,915,000 | 282,605,000 | 247,915,000 | 218,530,000 | ||||||
Corporate | |||||||||||
Revenue: | |||||||||||
Retail merchandise sales | 0 | 0 | 0 | ||||||||
Pawn loan fees | 0 | 0 | 0 | ||||||||
Consumer loan and credit services fees | 0 | 0 | 0 | ||||||||
Wholesale scrap jewelry sales | 0 | 0 | 0 | ||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Cost of revenue: | |||||||||||
Cost of retail merchandise sold | 0 | 0 | 0 | ||||||||
Consumer loan and credit services loss provision | 0 | 0 | 0 | ||||||||
Cost of wholesale scrap jewelry sold | 0 | 0 | 0 | ||||||||
Total cost of revenue | 0 | 0 | 0 | ||||||||
Net revenue | 0 | 0 | 0 | ||||||||
Expenses and other income: | |||||||||||
Store operating expenses | 0 | 0 | 0 | ||||||||
Administrative expenses | 122,473,000 | 96,537,000 | 51,883,000 | ||||||||
Depreciation and amortization | 20,849,000 | 7,818,000 | 2,990,000 | ||||||||
Interest expense | 24,035,000 | 20,320,000 | 16,887,000 | ||||||||
Interest income | (1,597,000) | (751,000) | (1,566,000) | ||||||||
Merger and other acquisition expenses | 9,062,000 | 36,670,000 | 2,875,000 | ||||||||
Gain (Loss) on Extinguishment of Debt | 14,114,000 | ||||||||||
Goodwill impairment - U.S. consumer loan operations | 7,913,000 | ||||||||||
Net gain on sale of common stock of Enova | (1,299,000) | ||||||||||
Total expenses and other income | 188,936,000 | 159,295,000 | 80,982,000 | ||||||||
Income before income taxes | (188,936,000) | (159,295,000) | (80,982,000) | ||||||||
Pawn loans | 0 | 0 | 0 | 0 | 0 | ||||||
Consumer loans, net | 0 | 0 | 0 | 0 | 0 | ||||||
Inventories | 0 | 0 | 0 | 0 | 0 | ||||||
Total assets | $ 253,167,000 | $ 259,293,000 | $ 253,167,000 | $ 259,293,000 | $ 111,187,000 |
Segment and Geographic Inform79
Segment and Geographic Information Segment and Geographic Information 2 (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 480,205 | $ 435,412 | $ 416,629 | $ 447,576 | $ 462,042 | $ 261,153 | $ 181,979 | $ 183,203 | $ 1,779,822 | $ 1,088,377 | $ 704,602 |
Long-Lived Assets | 284,386 | 307,736 | 284,386 | 307,736 | 116,350 | ||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,292,492 | 671,511 | 336,848 | ||||||||
Long-Lived Assets | 227,659 | 257,939 | 227,659 | 257,939 | 65,742 | ||||||
Mexico | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 464,161 | 397,549 | 367,754 | ||||||||
Long-Lived Assets | 53,175 | 47,243 | 53,175 | 47,243 | 49,259 | ||||||
Other Latin America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 23,169 | 19,317 | 0 | ||||||||
Long-Lived Assets | $ 3,552 | $ 2,554 | $ 3,552 | $ 2,554 | $ 1,349 |
Quarterly Financial Data (Una80
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Sep. 01, 2016 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Total revenue | $ 480,205 | $ 435,412 | $ 416,629 | $ 447,576 | $ 462,042 | $ 261,153 | $ 181,979 | $ 183,203 | $ 1,779,822 | $ 1,088,377 | $ 704,602 | |
Total cost of revenue | 231,069 | 204,366 | 192,205 | 204,676 | 207,927 | 113,789 | 80,518 | 81,340 | 832,316 | 483,574 | 313,418 | |
Net revenue | 249,136 | 231,046 | 224,424 | 242,900 | 254,115 | 147,364 | 101,461 | 101,863 | 947,506 | 604,803 | 391,184 | |
Total expenses and other income | 192,101 | 189,479 | 202,956 | 190,658 | 197,998 | 146,941 | 84,215 | 82,202 | 775,194 | 511,356 | 303,503 | |
Net income | $ 67,734 | $ 28,274 | $ 15,239 | $ 32,645 | $ 36,692 | $ (1,412) | $ 11,673 | $ 13,174 | $ 143,892 | $ 60,127 | $ 60,710 | |
Diluted income per share: | ||||||||||||
Net income per diluted share (in dollars per share) | $ 1.43 | $ 0.59 | $ 0.32 | $ 0.67 | $ 0.76 | $ (0.04) | $ 0.41 | $ 0.47 | ||||
Diluted weighted average shares | 47,212 | 47,668 | 48,289 | 48,402 | 48,532 | 34,631 | 28,243 | 28,241 | 47,888 | 35,004 | 28,326 | |
Cash America | ||||||||||||
Common stock, issued | 20,181 |