Variable Interest Entities

12 Months Ended

Jan. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

In fiscal years 2017 and 2016, we securitized customer accounts receivables by transferring the receivables to various bankruptcy-remote VIEs. Under the terms of the respective securitization transactions, all cash collections and other cash proceeds of the customer receivables go first to the servicer and the holders of the asset-backed notes, and then to the residual equity holder. We retain the servicing of the securitized portfolio and receive a monthly fee of 4.75% (annualized) based on the outstanding balance of the securitized receivables, and we currently hold all of the residual equity. In addition, we, rather than the VIEs, will retain certain credit insurance income together with certain recoveries related to credit insurance and repair service agreements on charge-offs of the securitized receivables, which will continue to be reflected as a reduction of net charge-offs on a consolidated basis for as long as we consolidate the VIEs.

We consolidate VIEs when we determine that we are the primary beneficiary of these VIEs, we have the power to direct the activities that most significantly impact the performance of the VIEs and our obligation to absorb losses and the right to receive residual returns are significant.

The following table presents the assets and liabilities held by the VIEs (for legal purposes, the assets and liabilities of the VIEs will remain distinct from Conn's, Inc.):



(in thousands)	January 31, 2017			January 31, 2016
Assets:
Restricted cash	$	110,698		$	78,576
Due from Conn's, Inc., net	7,368			3,405
Customer accounts receivable:
Customer accounts receivable	884,367			763,278
Restructured accounts	131,470			107,406
Allowance for uncollectible accounts	(150,435		)	(136,325		)
Allowance for short-term, no-interest option programs	(15,912		)	(12,955		)
Total customer accounts receivable, net	849,490			721,404
Total assets	$	967,556		$	803,385
Liabilities:
Accrued expenses	$	6,525		$	1,636
Other liabilities	6,691			3,042
Long-term debt:
2015 Class A Notes	12,166			551,383
2015 Class B Notes	165,900			165,900
2016A Class A Notes	64,732			—
2016A Class B Notes	70,510			—
2016A Class C Notes	70,510			—
2016B Class A Notes	256,513			—
2016B Class B Notes	111,960			—
	752,291			717,283
Less: deferred debt issuance costs	(6,710		)	(17,768		)
Total long-term debt	745,581			699,515
Total liabilities	$	758,797		$	704,193

The assets of the respective VIEs serve as collateral for the obligations of the respective VIEs. The holders of asset-backed notes have no recourse to assets outside of the respective VIEs.