XML 73 R14.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Fair Values of Assets and Liabilities | 6 Months Ended
--- | ---
Jun. 30, 2013
Fair Value Disclosures [Abstract] |
Fair Values of Assets and Liabilities | Fair Values of Assets and Liabilities Valuations and Techniques for Assets Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The table below summarizes (in thousands) by fair value hierarchy the June 30, 2013 and December 31, 2012 fair values and carrying amounts (1) of our assets that are required to be carried at fair value in our consolidated financial statements and (2) of our assets not carried at fair value, but for which fair value disclosures are required:
Assets – As of June 30, 2013 (1) | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Carrying Amount of Assets
Loans and fees receivable, net for which it is practicable to estimate fair value | $ | — |  |  | $ | — |  |  | $ | 87,744 |  |  | $ | 68,597 |
Loans and fees receivable, net for which it is not practicable to estimate fair value (2) | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 7,821 |
Loans and fees receivable, at fair value | $ | — |  |  | $ | — |  |  | $ | 15,662 |  |  | $ | 15,662 |
Loans and fees receivable pledged as collateral under structured financings, at fair value | $ | — |  |  | $ | — |  |  | $ | 107,258 |  |  | $ | 107,258 |
Assets – As of December 31, 2012 (1) | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Carrying Amount of Assets
Loans and fees receivable, net for which it is practicable to estimate fair value | $ | — |  |  | $ | — |  |  | $ | 76,384 |  |  | $ | 65,198 |
Loans and fees receivable, net for which it is not practicable to estimate fair value (2) | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4,427 |
Loans and fees receivable, at fair value | $ | — |  |  | $ | — |  |  | $ | 20,378 |  |  | $ | 20,378 |
Loans and fees receivable pledged as collateral under structured financings, at fair value | $ | — |  |  | $ | — |  |  | $ | 133,595 |  |  | $ | 133,595 |
(1) | For cash, deposits and other short-term investments, the carrying amount is a reasonable estimate of fair value.
(2) | We do not disclose fair value for this portion of our loans and fees receivable, net because it is not practicable to do so. These loans and fees receivable consist of a variety of receivables that are largely start-up in nature and for which we have neither sufficient history nor a comparable peer group from which we can calculate fair value.
For those asset classes above that are required to be carried at fair value in our consolidated financial statements, gains and losses associated with fair value changes are detailed on our fees and related income on earning assets table within Note 2, “Significant Accounting Policies and Consolidated Financial Statement Components.” For Level 3 assets carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) a reconciliation of the beginning and ending balances for the six months ended June 30, 2013 and June 30, 2012:
| Loans and Fees Receivable, at Fair Value |  | Loans and Fees Receivable Pledged as Collateral under Structured Financings, at Fair Value |  | Total
Balance at January 1, 2013 | $ | 20,378 |  |  | $ | 133,595 |  |  | $ | 153,973 |
Total gains—realized/unrealized: |  |  |  |  |  |  |  |
Net revaluations of loans and fees receivable pledged as collateral under structured financings, at fair value | — |  |  | 19,789 |  |  | 19,789 |
Net revaluations of loans and fees receivable, at fair value | 5,276 |  |  | — |  |  | 5,276 |
Settlements, net | (9,992 | ) |  | (43,553 | ) |  | (53,545 | )
Impact of foreign currency translation | — |  |  | (2,573 | ) |  | (2,573 | )
Net transfers in and/or out of Level 3 | — |  |  | — |  |  | — |
Balance at June 30, 2013 | $ | 15,662 |  |  | $ | 107,258 |  |  | $ | 122,920 |
Balance at January 1, 2012 | $ | 28,226 |  |  | $ | 238,763 |  |  | $ | 266,989 |
Total gains—realized/unrealized: |  |  |  |  |  |  |  |
Net revaluations of loans and fees receivable pledged as collateral under structured financings, at fair value | — |  |  | 75,471 |  |  | 75,471 |
Net revaluations of loans and fees receivable, at fair value | 7,400 |  |  | — |  |  | 7,400 |
Settlements, net | (14,780 | ) |  | (129,172 | ) |  | (143,952 | )
Impact of foreign currency translation | — |  |  | 1,144 |  |  | 1,144 |
Net transfers in and/or out of Level 3 | — |  |  | — |  |  | — |
Balance at June 30, 2012 | $ | 20,846 |  |  | $ | 186,206 |  |  | $ | 207,052 |
The unrealized gains and losses for assets within the Level 3 category presented in the tables above include changes in fair value that are attributable to both observable and unobservable inputs. Net Revaluation of Loans and Fees Receivable. We record the net revaluation of loans and fees receivable (including those pledged as collateral) in the fees and related income on earning assets category in our consolidated statements of operations, specifically as changes in fair value of loans and fees receivable recorded at fair value. For Level 3 assets carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) quantitative information about the valuation techniques and the inputs used in the fair value measurement as of June 30, 2013:
Quantitative Information about Level 3 Fair Value Measurements
| Fair Value at |  |  |  |  |  |
| June 30, 2013 |  |  |  |  |  |
Fair Value Measurements | (in Thousands) |  | Valuation Technique |  | Unobservable Input |  | Range (Weighted Average)(1)
Loans and fees receivable, at fair value | $ | 15,662 |  |  | Discounted cash flows |  | Gross yield |  | 23.5 | %
|  |  |  |  |  | Principal payment rate |  | 3.7 | %
|  |  |  |  |  | Expected credit loss rate |  | 17.0 | %
|  |  |  |  |  | Servicing rate |  | 11.2 | %
|  |  |  |  |  | Discount rate |  | 15.9 | %
Loans and fees receivable pledged as collateral under structured financings, at fair value | $ | 107,258 |  |  | Discounted cash flows |  | Gross yield |  | 8.4% to 25.3% (18.8%) |
|  |  |  |  |  | Principal payment rate |  | 1.5% to 3.2% (2.5%) |
|  |  |  |  |  | Expected credit loss rate |  | 11.7% to 23.0% (18.7%) |
|  |  |  |  |  | Servicing rate |  | 6.8% to 8.5% (7.8%) |
|  |  |  |  |  | Discount rate |  | 15.9% to 16.2% (16.0%) |
(1) Our loans and fees receivable, at fair value consist of a single portfolio with one set of assumptions. As such, no range is given. Valuations and Techniques for Liabilities Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the liability. The table below summarizes (in thousands) by fair value hierarchy the June 30, 2013 and December 31, 2012 fair values and carrying amounts of (1) our liabilities that are required to be carried at fair value in our consolidated financial statements and (2) our liabilities not carried at fair value, but for which fair value disclosures are required:
Liabilities – As of June 30, 2013 | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Carrying Amount of Liabilities
Liabilities not carried at fair value |  |  |  |  |  |  |
CAR revolving credit facility | $ | — |  |  | $ | — |  |  | $ | 20,000 |  |  | $ | 20,000 |
ACC amortizing debt facility | $ | — |  |  | $ | — |  |  | $ | 1,887 |  |  | $ | 1,887 |
Amortizing debt facility | $ | — |  |  | $ | — |  |  | $ | 6,721 |  |  | $ | 6,721 |
Revolving credit facility | $ | — |  |  | $ | — |  |  | $ | 4,000 |  |  | $ | 4,000 |
Amortizing structured financing | $ | — |  |  | $ | — |  |  | $ | 1,477 |  |  | $ | 1,477 |
U.K. credit card accounts revolving credit facility | $ | — |  |  | $ | — |  |  | $ | 7,783 |  |  | $ | 7,783 |
5.875% Convertible Senior Notes | $ | — |  |  | $ | 64,155 |  |  | $ | — |  |  | $ | 95,178 |
Liabilities carried at fair value |  |  |  |  |  |  |  |  |  |  |
Interest rate swap underlying CAR facility | $ | — |  |  | $ | 124 |  |  | $ | — |  |  | $ | 124 |
Economic sharing arrangement liability | $ | — |  |  | $ | — |  |  | $ | 550 |  |  | $ | 550 |
Notes payable associated with structured financings, at fair value | $ | — |  |  | $ | — |  |  | $ | 113,613 |  |  | $ | 113,613 |
Liabilities - As of December 31, 2012 | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Carrying Amount of Liabilities
Liabilities not carried at fair value |  |  |  |  |  |  |  |  |  |  |
CAR revolving credit facility | $ | — |  |  | $ | — |  |  | $ | 20,000 |  |  | $ | 20,000 |
ACC amortizing debt facility | $ | — |  |  | $ | — |  |  | $ | 3,896 |  |  | $ | 3,896 |
Revolving credit facility | $ | — |  |  | $ | — |  |  | $ | 1,456 |  |  | $ | 1,456 |
U.K. credit card accounts revolving credit facility | $ | — |  |  | $ | — |  |  | $ | 1,213 |  |  | $ | 1,213 |
5.875% Convertible Senior Notes | $ | — |  |  | $ | 55,787 |  |  | $ | — |  |  | $ | 94,886 |
Liabilities carried at fair value |  |  |  |  |  |  |  |  |  |  |
Interest rate swap underlying CAR facility | $ | — |  |  | $ | 175 |  |  | $ | — |  |  | $ | 175 |
Economic sharing arrangement liability | $ | — |  |  | $ | — |  |  | $ | 815 |  |  | $ | 815 |
Notes payable associated with structured financings, at fair value | $ | — |  |  | $ | — |  |  | $ | 140,127 |  |  | $ | 140,127 |
Gains and losses associated with fair value changes for our notes payable associated with structured financing liabilities that are carried at fair value are detailed on our fees and related income on earning assets table within Note 2, “Significant Accounting Policies and Consolidated Financial Statement Components.” See Note 8, “Notes Payable,” for further discussion on our notes payable. For our material Level 3 liabilities carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) a reconciliation of the beginning and ending balances for the six months ended June 30, 2013 and 2012.
| Notes Payable Associated with Structured Financings, at Fair Value
| 2013 |  | 2012
Beginning balance, January 1 | $ | 140,127 |  |  | $ | 241,755 |
Transfers in due to consolidation of equity-method investees | — |  |  | — |
Total (gains) losses—realized/unrealized: |  |  |  |  |
Net revaluations of notes payable associated with structured financings, at fair value | 15,575 |  |  | 25,390 |
Repayments on outstanding notes payable, net | (39,388 | ) |  | (85,480 | )
Impact of foreign currency translation | (2,701 | ) |  | 1,085 |
Net transfers in and/or out of Level 3 | — |  |  | — |
Ending balance, June 30 | $ | 113,613 |  |  | $ | 182,750 |
The unrealized gains and losses for liabilities within the Level 3 category presented in the tables above include changes in fair value that are attributable to both observable and unobservable inputs. We provide below a brief description of the valuation techniques used for Level 3 liabilities. Net Revaluation of Notes Payable Associated with Structured Financings, at Fair Value. We record the net revaluations of notes payable associated with structured financings, at fair value, in the changes in fair value of notes payable associated with structured financings line item within the fees and related income on earning assets category of our consolidated statements of operations. For material Level 3 liabilities carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) quantitative information about the valuation techniques and the inputs used in the fair value measurement for the period ended June 30, 2013:
Quantitative Information about Level 3 Fair Value Measurements
| Fair Value at |  |  |  |  |  |
| June 30, 2013 |  |  |  |  |  |
Fair Value Measurements | (in thousands) |  | Valuation Technique |  | Unobservable Input |  | Range (Weighted Average)
Notes payable associated with structured financings, at fair value | $ | 113,613 |  |  | Discounted cash flows |  | Gross yield |  | 8.4% to 25.3% (18.8%)
|  |  |  |  |  | Principal payment rate |  | 1.5% to 3.2% (2.5%)
|  |  |  |  |  | Expected credit loss rate |  | 11.7% to 23.0% (18.7%)
|  |  |  |  |  | Discount rate |  | 15.9% to 20.3% (17.6%)
Other Relevant Data Other relevant data (in thousands) as of June 30, 2013 and December 31, 2012 concerning certain assets and liabilities we carry at fair value are as follows:
As of June 30, 2013 | Loans and Fees Receivable at Fair Value |  | Loans and Fees Receivable Pledged as Collateral under Structured Financings at Fair Value
Aggregate unpaid principal balance within loans and fees receivable that are reported at fair value | $ | 21,213 |  |  | $ | 144,322 |
Aggregate fair value of loans and fees receivable that are reported at fair value | $ | 15,662 |  |  | $ | 107,258 |
Aggregate fair value of receivables carried at fair value that are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) | $ | 29 |  |  | $ | 415 |
Aggregate excess of balance of unpaid principal receivables within loans and fees receivable that are reported at fair value and are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) over the fair value of such loans and fees receivable | $ | 799 |  |  | $ | 6,116 |
As of December 31, 2012 | Loans and Fees Receivable at Fair Value |  | Loans and Fees Receivable Pledged as Collateral under Structured Financings at Fair Value
Aggregate unpaid principal balance within loans and fees receivable that are reported at fair value | $ | 26,154 |  |  | $ | 192,433 |
Aggregate fair value of loans and fees receivable that are reported at fair value | $ | 20,378 |  |  | $ | 133,595 |
Aggregate fair value of receivables carried at fair value that are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) | $ | 36 |  |  | $ | 957 |
Aggregate excess of balance of unpaid principal receivables within loans and fees receivable that are reported at fair value and are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) over the fair value of such loans and fees receivable | $ | 1,643 |  |  | $ | 7,591 |
Notes Payable | Notes Payable Associated with Structured Financings, at Fair Value as of June 30, 2013 |  | Notes Payable Associated with Structured Financings, at Fair Value as of December 31, 2012
Aggregate unpaid principal balance of notes payable | $ | 241,675 |  |  | $ | 287,711 |
Aggregate fair value of notes payable | $ | 113,613 |  |  | $ | 140,127 |

X
- Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15A -Subparagraph a-d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15C, 15D -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 3, 10, 14, 15 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32, 33, 34 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44A, 44B -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13504-108611 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15B -Subparagraph a, b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 17-22, 27, 28 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration