XML 41 R31.htm IDEA: XBRL DOCUMENT
v3.3.0.814

Debt (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2015
Debt Instrument [Line Items] |
Schedule of Obligation Under Borrowings | The Company is in compliance with all covenants under its financing arrangements. The components of the Company’s consolidated debt and capital lease obligations were as follows (in thousands):
| September 30, 2015 |  | December 31, 2014
Encore revolving credit facility | $ | 576,000 |  |  | $ | 505,000 |
Encore term loan facility | 140,141 |  |  | 146,023 |
Encore senior secured notes | 32,500 |  |  | 43,750 |
Encore convertible notes | 448,500 |  |  | 448,500 |
Less: Debt discount | (44,255 | ) |  | (51,202 | )
Propel facilities | 154,460 |  |  | 84,229 |
Propel securitized notes | 71,923 |  |  | 104,247 |
Cabot senior secured notes | 1,045,143 |  |  | 1,076,952 |
Add: Debt premium | 57,387 |  |  | 67,259 |
Cabot senior revolving credit facility | 242,751 |  |  | 86,368 |
Cabot senior secured bridge facility | 136,323 |  |  | — |
Preferred equity certificates | 220,304 |  |  | 208,312 |
Capital lease obligations | 10,574 |  |  | 15,331 |
Other | 24,693 |  |  | 38,785 |
| $ | 3,116,444 |  |  | $ | 2,773,554 |
Schedule of Convertible Notes - Interest Rates, Hedging, Liability and Equity Components | The balances of the liability and equity components of all of the Convertible Notes outstanding were as follows (in thousands):
| September 30, 2015 |  | December 31, 2014
Liability component—principal amount | $ | 448,500 |  |  | $ | 448,500 |
Unamortized debt discount | (44,255 | ) |  | (51,202 | )
Liability component—net carrying amount | $ | 404,245 |  |  | $ | 397,298 |
Equity component | $ | 57,428 |  |  | $ | 55,236 |
The debt and equity components, the issuance costs related to the equity component, the stated interest rate, and the effective interest rate for each of the Convertible Notes are listed below (in thousands, except percentages):
| 2017 Convertible Notes |  | 2020 Convertible Notes |  | 2021 Convertible Notes
Debt component | $ | 100,298 |  |  | $ | 140,271 |  |  | $ | 143,604 |
Equity component | $ | 14,702 |  |  | $ | 32,229 |  |  | $ | 17,396 |
Equity issuance cost | $ | 788 |  |  | $ | 1,113 |  |  | $ | 575 |
Stated interest rate | 3.000 | % |  | 3.000 | % |  | 2.875 | %
Effective interest rate | 6.000 | % |  | 6.350 | % |  | 4.700 | %
Certain key terms related to the convertible features for each of the Convertible Notes as of September 30, 2015 are listed below.
| 2017 Convertible Notes |  | 2020 Convertible Notes |  | 2021 Convertible Notes
Initial conversion price | $ | 31.56 |  |  | $ | 45.72 |  |  | $ | 59.39 |
Closing stock price at date of issuance | $ | 25.66 |  |  | $ | 33.35 |  |  | $ | 47.51 |
Closing stock price date | November 27, 2012 |  |  | June 24, 2013 |  |  | March 5, 2014 |
Conversion rate (shares per $1,000 principal amount) | 31.6832 |  |  | 21.8718 |  |  | 16.8386 |
Conversion date(1) | May 27, 2017 |  |  | January 1, 2020 |  |  | September 15, 2020 |
_______________________
(1) | 2017 Convertible Notes became convertible on January 2, 2014, as certain early conversion events were satisfied. Refer to “Conversion and Earnings Per Share Impact” section below for further details.
The details of the hedge program for each of the Convertible Notes are listed below (in thousands, except conversion price):
| 2017 Convertible Notes |  | 2020 Convertible Notes |  | 2021 Convertible Notes
Cost of the hedge transaction(s) | $ | 50,595 |  |  | $ | 18,113 |  |  | $ | 19,545 |
Initial conversion price | $ | 31.56 |  |  | $ | 45.72 |  |  | $ | 59.39 |
Effective conversion price | $ | 60.00 |  |  | $ | 61.55 |  |  | $ | 83.14 |
Cabot and Marlin Acquisitions [Member] |
Debt Instrument [Line Items] |
Interest Expense | Interest expense related to the Cabot Notes and Marlin Bonds was as follows (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Interest expense—stated coupon rate | $ | 24,394 |  |  | $ | 26,239 |  |  | $ | 72,395 |  |  | $ | 72,099 |
Interest income—accretion of debt premium | (2,771 | ) |  | (2,760 | ) |  | (7,978 | ) |  | (7,565 | )
Total interest expense—Cabot Notes and Marlin Bonds | $ | 21,623 |  |  | $ | 23,479 |  |  | $ | 64,417 |  |  | $ | 64,534 |
Convertible Notes [Member] |
Debt Instrument [Line Items] |
Interest Expense | Interest expense related to the convertible notes was as follows (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Interest expense—stated coupon rate | $ | 3,315 |  |  | $ | 3,316 |  |  | $ | 9,915 |  |  | $ | 9,080 |
Interest expense—amortization of debt discount | 2,359 |  |  | 2,228 |  |  | 6,947 |  |  | 6,164 |
Total interest expense—convertible notes | $ | 5,674 |  |  | $ | 5,544 |  |  | $ | 16,862 |  |  | $ | 15,244 |

X
- Definition Tabular disclosure of borrowings which can be exchanged for a specified number of another security at the option of the issuer or the holder. Disclosures include, but are not limited to, principal amount, amortized premium or discount, and amount of liability and equity components. + References No definition available. + Details
Name: | us-gaap_ConvertibleDebtTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. + References No definition available. + Details
Name: | us-gaap_DebtInstrumentLineItems
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information pertaining to short-term and long-debt instruments or arrangements, including but not limited to identification of terms, features, collateral requirements and other information necessary to a fair presentation. + References No definition available. + Details
Name: | us-gaap_ScheduleOfDebtTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of non-operating income or non-operating expense that may include amounts earned from dividends, interest on securities, gains (losses) on securities sold, equity earnings of unconsolidated affiliates, net gain (loss) on sales of business, interest expense and other miscellaneous income or expense items. + References No definition available. + Details
Name: | us-gaap_ScheduleOfOtherNonoperatingIncomeExpenseTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_BusinessAcquisitionAxis=ecpg_CabotandMarlinAcquisitionsMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |

X
- Details
Name: | us-gaap_DebtInstrumentAxis=us-gaap_ConvertibleNotesPayableMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |