Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Measurements

Schedule of fair value of assets and liabilities

	Quoted Prices in Active		Significant Other		Significant
	Markets for Identical Assets		Observable Inputs		Unobservable Inputs		Total at
	Level 1		Level 2		Level 3		Fair Value
	(Dollars in thousands)
March 31, 2014 (Unaudited):
Assets
Marketable Securities:
Equity securities
US large cap	$	40,055	$	—	$	—	$	40,055
US mid cap	9,938		—		—		9,938
US small cap	9,660		—		—		9,660
International	18,564		—		—		18,564
Other equity	973		—		—		973
Total equity securities	79,190		—		—		79,190
Fixed income securities
US fixed income	22,711		—		—		22,711
International fixed income	3,284		—		—		3,284
Other fixed income	29		—		—		29
Total fixed income securities	26,024		—		—		26,024
Other securities
Cash & cash equivalents	8,435		—		—		8,435
Alternative investments	841		—		—		841
Annuities	2,192		—		—		2,192
Total other securities	11,468		—		—		11,468
Total marketable securities	116,682						116,682
VIE and other finance receivables at fair market value	—		—		4,060,132		4,060,132
Notes receivable at fair market value	—		—		5,855		5,855
Life settlements contracts, at fair market value (1)	—		—		—		—
Total Assets	$	116,682	$	—	$	4,065,987	$	4,182,669
Liabilities
VIE long-term debt issued by securitization and permanent financing trusts at fair market value	—		—		3,666,583		3,666,583
VIE derivative liabilities, at fair market value	—		71,488		—		71,488
Total Liabilities	$	—	$	71,488	$	3,666,583	3,738,071

(1) Included in other assets on the Company’s unaudited condensed consolidated balance sheet.

	Quoted Prices in Active		Significant Other		Significant
	Markets for Identical Assets		Observable Inputs		Unobservable Inputs		Total at
	Level 1		Level 2		Level 3		Fair Value
	(Dollars in thousands)
December 31, 2013:
Assets
Marketable Securities:
Equity securities
US large cap	$	41,821	$	—	$	—	$	41,821
US mid cap	9,769		—		—		9,769
US small cap	10,212		—		—		10,212
International	19,938		—		—		19,938
Other equity	936		—		—		936
Total equity securities	82,676		—		—		82,676
Fixed income securities
US fixed income	26,713		—		—		26,713
International fixed income	4,089		—		—		4,089
Other fixed income	29		—		—		29
Total fixed income securities	30,831		—		—		30,831
Other securities
Cash & cash equivalents	5,534		—		—		5,534
Alternative investments	705		—		—		705
Annuities	2,208		—		—		2,208
Total other securities	8,447		—		—		8,447
Total marketable securities	121,954						121,954
VIE and other finance receivables at fair market value	—		—		3,870,649		3,870,649
Notes receivable at fair market value	—		—		5,610		5,610
Life settlements contracts, at fair market value (1)	—		—		—		—
Total Assets	$	121,954	$	—	$	3,876,259	$	3,998,213
Liabilities
VIE long-term debt issued by securitization and permanent financing trusts at fair market value	—		—		3,431,283		3,431,283
VIE derivative liabilities, at fair market value	—		70,296		—		70,296
Total Liabilities	$	—	$	70,296	$	3,431,283	3,501,579

(1) Included in other assets on the Company’s condensed consolidated balance sheet.

Schedule of the Company's quantitative information about Level 3 fair value measurements

					Range
	Fair Value		Valuation Technique	Unobservable Input	(Weighted Average)
	(Dollars in thousands)
March 31, 2014 (Unaudited):
Assets
VIE and other finance receivables, at fair market value	$	4,060,132	Discounted cash flow	Discount rate	2.57% - 12.81% (4.01%)
Notes receivable, at fair market value	5,855		Discounted cash flow	Discount rate	6.77% (6.77%)
Life settlement contracts, at fair market value	—		Model actuarial pricing	Life expectancy Discount rate	11 to 247 months (145) 18.50% (18.50%)
Total Assets	$	4,065,987
Liabilities
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value	3,666,583		Discounted cash flow	Discount rate	0.58% - 12.70% (3.69%)
Total Liabilities	$	3,666,583

					Range
	Fair Value		Valuation Technique	Unobservable Input	(Weighted Average)
	(Dollars in thousands)
December 31, 2013:
Assets
VIE and other finance receivables, at fair market value	$	3,870,649	Discounted cash flow	Discount rate	2.79% - 13.69% (4.33%)
Notes receivable, at fair market value	5,610		Discounted cash flow	Discount rate	7.85% (7.85%)
Life settlement contracts, at fair market value	—		Model actuarial pricing	Life expectancy Discount rate	14 to 250 months (148) 18.50% (18.50%)
Total Assets	$	3,876,259
Liabilities
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value	3,431,283		Discounted cash flow	Discount rate	0.73% - 12.70% (3.94%)
Total Liabilities	$	3,431,283

Schedule of changes in assets measured at fair value using significant unobservable inputs (Level 3)

	VIE and other finance receivables, at fair market value			Life settlement contracts, at fair market value			Notes receivable, at fair market value			Total
	(Dollars in thousands)
Balance as of December 31, 2012	$	3,615,188		$	1,724		$	8,074		$	3,624,986
Total gains (losses):
Included in earnings / losses	289,987			(65		)	—			289,922
Included in other comprehensive gain	—			—			154			154
Purchases	95,911			—			—			95,911
Premiums paid	—			233			—			233
Sales	—			—			—			—
Lapsed policies	—			—			—			—
Interest accreted	36,103			—			—			36,103
Payments received	(99,034		)	—			(1,222		)	(100,256		)
Maturities	—			—			—			—
Asset distribution	(9,615		)	(1,892		)	—			(11,507		)
Transfers in and/or out of Level 3	—			—			—			—
Balance as of March 31, 2013	$	3,928,540		$	—		$	7,006		3,935,546
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held as of:
March 31, 2013	$	289,987		$	(12	)	$	—		$	289,975
Balance as of December 31, 2013	$	3,870,649		$	—		$	5,610		$	3,876,259
Total gains (losses):
Included in earnings / losses	165,714			—			—			165,714
Included in other comprehensive gain	—			—			404			404
Purchases	92,397			—			—			92,397
Premiums paid	—			—			—			—
Sales	—			—			—			—
Lapsed policies	—			—			—			—
Interest accreted	42,452			—			—			42,452
Payments received	(111,080		)	—			(159		)	(111,239		)
Maturities	—			—			—			—
Asset distribution	—			—			—			—
Transfers in and/or out of Level 3	—			—			—			—
Balance as of March 31, 2014	$	4,060,132		$	—		$	5,855		$	4,065,987
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held as of:
March 31, 2014	$	165,714		$	—		$	—		$	165,714

Schedule of changes in liabilities measured at fair value using significant unobservable inputs (Level 3)

	VIE long-term debt issued by securitizations and permanent financing trusts
	(Dollars in thousands)
Balance as of December 31, 2012	$	3,229,591
Total (gains) losses:
Included in earnings / losses	167,692
Issuances	220,801
Interest accreted	(11,151		)
Repayments	(59,866		)
Transfers in and/or out of Level 3	—
Balance as of March 31, 2013	$	3,547,067
The amount of total (gains) losses for the period included in earnings attributable to the change in unrealized gains or losses relating to long- term debt still held as of:
March 31, 2013	$	167,692
Balance as of December 31, 2013	$	3,431,283
Total (gains) losses:
Included in earnings / losses	76,940
Issuances	237,792
Interest accreted	(7,855		)
Repayments	(71,577		)
Transfers in and/or out of Level 3	—
Balance as of March 31, 2014	$	3,666,583
The amount of total (gains) losses for the period included in earnings attributable to the change in unrealized gains or losses relating to long- term debt still held as of:
March 31, 2014	$	76,940

Schedule of realized and unrealized gains and losses included in earnings in the accompanying consolidated statements of operations

	VIE and other finance  receivables and long- term debt		Life settlement  contracts income
	(Dollars in thousands)
Total gains (losses) included in earnings in the three months ended March 31, 2014	$	88,774	$	—
Unrealized gains (losses) for the three months ended March 31, 2014 relating to assets still held as of March 31, 2014	$	88,774	$	—
Total gains (losses) included in earnings in the three months ended March 31, 2013	$	122,295	$	(65	)
Unrealized gains (losses) for the three monts ended March 31, 2013 relating to assets still held as of March 31, 2013	$	122,295	$	(12	)

Schedule of estimated fair values of financial instruments

	March 31,				December 31,
	2014				2013
	(Dollars in thousands)
	Estimated				Estimated
	Fair		Carrying		Fair		Carrying
	Value		Amount		Value		Amount
Financial assets
Marketable securities	$	116,682	$	116,682	$	121,954	$	121,954
VIE and other finance receivables, at fair market value	4,060,132		4,060,132		3,870,649		3,870,649
VIE and other finance receivables, net of allowance for losses (1)	127,177		134,057		126,502		132,992
Notes receivable, at fair market value	5,855		5,855		5,610		5,610
Other receivables, net of allowance for losses (1)	12,912		12,912		13,529		13,529
Financial liabilities
VIE derivative liabilities, at fair market value	71,488		71,488		70,296		70,296
VIE borrowings under revolving credit facilities and other similar borrowings (1)	55,997		55,519		42,275		41,274
VIE long-term debt (1)	143,093		148,329		147,112		150,802
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value	3,666,583		3,666,583		3,431,283		3,431,283
Installment obligations payable (1)	116,682		116,682		121,954		121,954
Term loan payable (1)	434,934		434,934		434,184		434,184

(1) These represent financial instruments not recorded in the condensed  consolidated balance sheets at fair value.  Such financial instruments would be classified as Level 3 within the fair value hierarchy.