XML 49 R13.htm IDEA: XBRL DOCUMENT

Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2020

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 March 31, 2020, 2019 and December 31, 2019, the Company did not have any financial assets or liabilities measured at fair value on a recurring basis.

Fair Value Measurements on a Non-Recurring Basis

The Company measures non-financial assets and liabilities, such as property and equipment and intangible assets, at fair value on a non-recurring basis or when events or circumstances indicate that the carrying amount of the assets may be impaired. During the three months ended March 31, 2020, the Company recorded $1.9 million impairment related to a non-financial, non-operating asset that was included in other assets in the consolidated balance sheets.

Financial Assets and Liabilities Not Measured at Fair Value

The Company’s financial assets and liabilities as of March 31, 2020, 2019 and December 31, 2019 that are not measured at fair value in the consolidated balance sheets are as follows (in thousands):



	Carrying Value		Estimated Fair Value
	March 31,		March 31,		Fair Value Measurements Using
	2020		2020		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	75,464	$	75,464	$	75,464	$	—	$	—
Fees and service charges receivable	40,121		40,121		—		—		40,121
Pawn loans	314,296		314,296		—		—		314,296
Consumer loans, net	410		410		—		—		410
	$	430,291	$	430,291	$	75,464	$	—	$	354,827

Financial liabilities:
Revolving unsecured credit facilities	$	355,519	$	355,519	$	—	$	355,519	$	—
Senior unsecured notes (outstanding principal)	300,000		276,000		—		276,000		—
	$	655,519	$	631,519	$	—	$	631,519	$	—



	Carrying Value		Estimated Fair Value
	March 31,		March 31,		Fair Value Measurements Using
	2019		2019		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	49,663	$	49,663	$	49,663	$	—	$	—
Fees and service charges receivable	43,993		43,993		—		—		43,993
Pawn loans	345,200		345,200		—		—		345,200
Consumer loans, net	11,017		11,017		—		—		11,017
	$	449,873	$	449,873	$	49,663	$	—	$	400,210

Financial liabilities:
Revolving unsecured credit facility	$	255,000	$	255,000	$	—	$	255,000	$	—
Senior unsecured notes (outstanding principal)	300,000		306,000		—		306,000		—
	$	555,000	$	561,000	$	—	$	561,000	$	—



	Carrying Value		Estimated Fair Value
	December 31,		December 31,		Fair Value Measurements Using
	2019		2019		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	46,527	$	46,527	$	46,527	$	—	$	—
Fees and service charges receivable	46,686		46,686		—		—		46,686
Pawn loans	369,527		369,527		—		—		369,527
Consumer loans, net	751		751		—		—		751
	$	463,491	$	463,491	$	46,527	$	—	$	416,964

Financial liabilities:
Revolving unsecured credit facility	$	335,000	$	335,000	$	—	$	335,000	$	—
Senior unsecured notes (outstanding principal)	300,000		310,000		—		310,000		—
	$	635,000	$	645,000	$	—	$	645,000	$	—

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. Consumer loans, net 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. Therefore, the carrying value approximates the fair value.

The carrying value of the unsecured credit facilities approximate fair value as of March 31, 2020, 2019 and December 31, 2019. The fair value of the unsecured credit facilities are estimated based on market values for debt issuances with similar characteristics or rates currently available for debt with similar terms. In addition, the unsecured credit facilities have a variable interest rate based on a fixed spread over LIBOR or TIIE and reprice with any changes in LIBOR or TIIE. The fair value of the senior unsecured notes is estimated based on quoted prices in markets that are not active.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details