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Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2016
Fair Value Disclosures [Abstract]  
Fair Value Assets and Liabilities Measured on Recurring Basis

The Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2016 and 2015 and December 31, 2015 are as follows (dollars in thousands):

 

 

 

March 31,

 

 

Fair Value Measurements Using

 

 

 

2016

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-qualified savings plan assets(1)

 

 

1,545

 

 

 

1,545

 

 

 

—

 

 

 

—

 

Contingent consideration

 

 

(5,658

)

 

 

—

 

 

 

—

 

 

 

(5,658

)

Total

 

$

(4,113

)

 

$

1,545

 

 

$

—

 

 

$

(5,658

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

Fair Value Measurements Using

 

 

 

2015

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forward currency exchange contracts

 

$

(125

)

 

$

—

 

 

$

(125

)

 

$

—

 

Non-qualified savings plan assets(1)

 

 

1,158

 

 

 

1,158

 

 

 

—

 

 

 

—

 

Total

 

$

1,033

 

 

$

1,158

 

 

$

(125

)

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

Fair Value Measurements Using

 

 

 

2015

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forward currency exchange contracts

 

$

151

 

 

$

—

 

 

$

151

 

 

$

—

 

Non-qualified savings plan assets(1)

 

 

1,075

 

 

 

1,075

 

 

 

—

 

 

 

—

 

Contingent consideration

 

 

(5,658

)

 

 

—

 

 

 

—

 

 

 

(5,658

)

Total

 

$

(4,432

)

 

$

1,075

 

 

$

151

 

 

$

(5,658

)

 

(1)

The non-qualified savings plan assets are included in “Other receivables and prepaid expenses” in the Company’s consolidated balance sheets and have an offsetting liability of equal amount, which is included in “Accounts payable and accrued expenses” in the Company’s consolidated balance sheets.

Fair Value Measurement for Contingent Consideration

The changes in the fair value of the contingent consideration, which is a Level 3 liability measured at fair value on a recurring basis, are summarized in the table below for the three months ended March 31, 2016 (dollars in thousands):

 

 

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

 

 

 

Contingent consideration

 

 

Total

 

Balance at December 31, 2015

 

$

5,658

 

 

$

5,658

 

Adjustments

 

 

—

 

 

 

—

 

Balance at March 31, 2016

 

$

5,658

 

 

$

5,658

 

 

Financial Assets and Liabilities Not Measured at Fair Value

The Company’s financial assets and liabilities as of March 31, 2016 and 2015 and December 31, 2015 that are not measured at fair value in the consolidated balance sheets are as follows (dollars in thousands):

 

 

 

Balance at

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

Fair Value Measurements Using

 

 

 

2016

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

112,211

 

 

$

112,211

 

 

$

—

 

 

$

—

 

Short-term loans and line of credit accounts, net (1)

 

 

123,755

 

 

 

—

 

 

 

—

 

 

 

123,755

 

Installment loans and RPAs, net (1)(4)

 

 

304,447

 

 

 

—

 

 

 

—

 

 

 

283,871

 

Restricted cash (5)

 

 

20,908

 

 

 

20,908

 

 

 

—

 

 

 

—

 

Investment in unconsolidated investee (2)(3)

 

 

6,703

 

 

 

—

 

 

 

—

 

 

 

6,703

 

Total

 

$

568,024

 

 

$

133,119

 

 

$

—

 

 

$

414,329

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liability for estimated losses on consumer loans guaranteed by the Company

 

$

1,182

 

 

$

—

 

 

$

—

 

 

$

1,182

 

Promissory note

 

 

3,000

 

 

 

—

 

 

 

—

 

 

 

3,019

 

Securitization Notes

 

 

113,913

 

 

 

—

 

 

 

113,913

 

 

 

—

 

Senior Notes

 

 

495,049

 

 

 

—

 

 

 

371,500

 

 

 

—

 

Total

 

$

613,144

 

 

$

—

 

 

$

485,413

 

 

$

4,201

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

Fair Value Measurements Using

 

 

 

2015

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

143,444

 

 

$

143,444

 

 

$

—

 

 

$

—

 

Short-term loans and line of credit accounts, net (1)

 

 

100,124

 

 

 

—

 

 

 

—

 

 

 

100,124

 

Installment loans and RPAs, net (1)

 

 

178,931

 

 

 

—

 

 

 

—

 

 

 

178,931

 

Restricted cash

 

 

7,410

 

 

 

7,410

 

 

 

—

 

 

 

—

 

Investment in unconsolidated investee (2)(3)

 

 

6,703

 

 

 

—

 

 

 

—

 

 

 

6,703

 

Total

 

$

436,612

 

 

$

150,854

 

 

$

—

 

 

$

285,758

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liability for estimated losses on consumer loans guaranteed by the Company

 

$

945

 

 

$

—

 

 

$

—

 

 

$

945

 

Senior Notes

 

 

494,347

 

 

 

—

 

 

 

475,000

 

 

 

—

 

Total

 

$

495,292

 

 

$

—

 

 

$

475,000

 

 

$

945

 

 

 

 

Balance at

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

Fair Value Measurements Using

 

 

 

2015

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

42,066

 

 

$

42,066

 

 

$

—

 

 

$

—

 

Short-term loans and line of credit accounts, net (1)

 

 

129,269

 

 

 

—

 

 

 

—

 

 

 

129,269

 

Installment loans and RPAs, net (1)

 

 

305,364

 

 

 

—

 

 

 

—

 

 

 

283,700

 

Restricted cash

 

 

7,379

 

 

 

7,379

 

 

 

—

 

 

 

—

 

Investment in unconsolidated investee (2)(3)

 

 

6,703

 

 

 

—

 

 

 

—

 

 

 

6,703

 

Total

 

$

490,781

 

 

$

49,445

 

 

$

—

 

 

$

419,672

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liability for estimated losses on consumer loans guaranteed by the Company

 

$

1,756

 

 

$

—

 

 

$

—

 

 

$

1,756

 

Promissory note

 

 

3,000

 

 

 

—

 

 

 

—

 

 

 

2,984

 

Credit agreement borrowings

 

 

58,400

 

 

 

—

 

 

 

—

 

 

 

58,400

 

Senior Notes

 

 

494,867

 

 

 

—

 

 

 

374,500

 

 

 

—

 

Total

 

$

558,023

 

 

$

—

 

 

$

374,500

 

 

$

63,140

 

 

(1)

Short-term loans, line of credit accounts, installment loans and RPAs are included in “Loans and finance receivables, net” in the consolidated balance sheets.

(2)

Investment in unconsolidated investee is included in “Other assets” in the consolidated balance sheets.

(3)

See Note 4 for additional information related to the investment in unconsolidated investee.

(4)

Installment loan and RPAs, net include $138.3 million in net assets of consolidated VIEs as of March 31, 2016.

(5)

Restricted cash includes $13.7 million in assets of consolidated VIEs as of March 31, 2016.