Significant Accounting Policies and Consolidated Financial Statement Components (Tables)

6 Months Ended

Jun. 30, 2013

Components of our aggregated categories of loans and fees receivable, net

Components of our aggregated categories of loans and fees receivable, net (in millions) are as follows:



	Balance at December 31, 2012			Additions			Subtractions			Balance at June 30, 2013
Loans and fees receivable, gross	$	89.1		$	109.2		$	(98.8	)	$	99.5
Deferred revenue	(8.3		)	(15.1		)	13.9			(9.5		)
Allowance for uncollectible loans and fees receivable	(11.2		)	(10.0		)	7.6			(13.6		)
Loans and fees receivable, net	$	69.6		$	84.1		$	(77.3	)	$	76.4
	Balance at December 31, 2011			Additions			Subtractions			Balance at June 30, 2012
Loans and fees receivable, gross	$	119.3		$	95.7		$	(102.5	)	$	112.5
Deferred revenue	(8.0		)	(13.3		)	12.8			(8.5		)
Allowance for uncollectible loans and fees receivable	(14.7		)	(10.3		)	8.0			(17.0		)
Loans and fees receivable, net	$	96.6		$	72.1		$	(81.7	)	$	87.0

Roll-forward of allowance for uncollectible loans and fees receivable, net

A roll-forward (in millions) of our allowance for uncollectible loans and fees receivable by class of receivable is as follows:



For the Three Months Ended June 30, 2013	Credit Cards			Auto Finance			Other Unsecured Lending Products			Total
Allowance for uncollectible loans and fees receivable:
Balance at beginning of period	$	(4.0	)	$	(2.6	)	$	(3.5	)	$	(10.1	)
Provision for loan losses	(3.7		)	0.5			(3.5		)	(6.7		)
Charge offs	1.5			1.2			1.0			3.7
Recoveries	(0.1		)	(0.3		)	(0.1		)	(0.5		)
Balance at end of period	$	(6.3	)	$	(1.2	)	$	(6.1	)	$	(13.6	)
Balance at end of period individually evaluated for impairment	$	—		$	—		$	—		$	—
Balance at end of period collectively evaluated for impairment	$	(6.3	)	$	(1.2	)	$	(6.1	)	$	(13.6	)



For the Six Months Ended June 30, 2013	Credit Cards			Auto Finance			Other Unsecured Lending Products			Total
Allowance for uncollectible loans and fees receivable:
Balance at beginning of period	$	(4.6	)	$	(3.1	)	$	(3.5	)	$	(11.2	)
Provision for loan losses	(5.9		)	0.7			(4.8		)	(10.0		)
Charge offs	4.3			2.3			2.3			8.9
Recoveries	(0.1		)	(1.1		)	(0.1		)	(1.3		)
Balance at end of period	$	(6.3	)	$	(1.2	)	$	(6.1	)	$	(13.6	)
Balance at end of period individually evaluated for impairment	$	—		$	—		$	—		$	—
Balance at end of period collectively evaluated for impairment	$	(6.3	)	$	(1.2	)	$	(6.1	)	$	(13.6	)
Loans and fees receivable:
Loans and fees receivable, gross	$	13.2		$	60.7		$	25.6		$	99.5
Loans and fees receivable individually evaluated for impairment	$	—		$	—		$	—		$	—
Loans and fees receivable collectively evaluated for impairment	$	13.2		$	60.7		$	25.6		$	99.5



For the Three Months Ended June 30, 2012	Credit Cards			Auto Finance			Other Unsecured Lending Products			Total
Allowance for uncollectible loans and fees receivable:
Balance at beginning of period	$	(4.5	)	$	(6.1	)	$	(1.9	)	$	(12.5	)
Provision for loan losses (includes $1.4 million of provision netted within income from discontinued operations)	(7.1		)	0.7			(1.0		)	(7.4		)
Charge offs	1.4			1.8			0.9			4.1
Recoveries	(0.3		)	(0.9		)	—			(1.2		)
Balance at end of period	$	(10.5	)	$	(4.5	)	$	(2.0	)	$	(17.0	)
Balance at end of period individually evaluated for impairment	$	—		$	—		$	—		$	—
Balance at end of period collectively evaluated for impairment	$	(10.5	)	$	(4.5	)	$	(2.0	)	$	(17.0	)



For the Six Months Ended June 30, 2012	Credit Cards			Auto Finance			Other Unsecured Lending Products			Total
Allowance for uncollectible loans and fees receivable:
Balance at beginning of period	$	(4.0	)	$	(8.4	)	$	(2.3	)	$	(14.7	)
Provision for loan losses (includes $1.8 million of provision netted within income from discontinued operations)	(8.9		)	1.3			(2.7		)	(10.3		)
Charge offs	3.0			4.7			3.0			10.7
Recoveries	(0.6		)	(2.1		)	—			(2.7		)
Balance at end of period	$	(10.5	)	$	(4.5	)	$	(2.0	)	$	(17.0	)
Balance at end of period individually evaluated for impairment	$	—		$	—		$	—		$	—
Balance at end of period collectively evaluated for impairment	$	(10.5	)	$	(4.5	)	$	(2.0	)	$	(17.0	)
Loans and fees receivable:
Loans and fees receivable, gross	$	27.9		$	73.4		$	11.2		$	112.5
Loans and fees receivable individually evaluated for impairment	$	—		$	0.1		$	—		$	0.1
Loans and fees receivable collectively evaluated for impairment	$	27.9		$	73.3		$	11.2		$	112.4

Components of loans and fees receivable, net

The components (in millions) of loans and fees receivable, net as of the date of each of our consolidated balance sheets are as follows:



	June 30, 2013		December 31, 2012
Current loans receivable	$	82.4	$	71.4
Current fees receivable	3.0		0.8
Delinquent loans and fees receivable	14.1		16.9
Loans and fees receivable, gross	$	99.5	$	89.1

Delinquent loans and fees receivable, gross

We consider loan delinquencies a key indicator of credit quality as this measure provides the best ongoing estimate of how a particular class of receivables is performing. An aging of our delinquent loans and fees receivable, gross (in millions) by class of receivable as of June 30, 2013 and December 31, 2012 is as follows:



Balance at June 30, 2013	Credit Cards		Auto Finance		Other Unsecured Lending Products		Total
30-59 days past due	$	1.2	$	5.2	$	1.2	$	7.6
60-89 days past due	0.9		1.5		0.8		3.2
90 or more days past due	1.5		0.6		1.2		3.3
Delinquent loans and fees receivable, gross	3.6		7.3		3.2		14.1
Current loans and fees receivable, gross	9.6		53.4		22.4		85.4
Total loans and fees receivable, gross	$	13.2	$	60.7	$	25.6	$	99.5
Balance of loans 90 or more days past due and still accruing interest and fees	$	—	$	0.1	$	—	$	0.1
Balance at December 31, 2012	Credit Cards		Auto Finance		Other Unsecured Lending Products		Total
30-59 days past due	$	0.7	$	5.4	$	0.6	$	6.7
60-89 days past due	1.0		2.0		0.5		3.5
90 or more days past due	4.2		1.6		0.9		6.7
Delinquent loans and fees receivable, gross	5.9		9.0		2.0		16.9
Current loans and fees receivable, gross	1.3		55.2		15.7		72.2
Total loans and fees receivable, gross	$	7.2	$	64.2	$	17.7	$	89.1
Balance of loans 90 or more days past due and still accruing interest and fees	$	—	$	0.5	$	—	$	0.5

Components of fees and related income on earning assets

The components (in thousands) of our fees and related income on earning assets are as follows:



	Three months ended June 30,						Six months ended June 30,
	2013			2012			2013			2012
Fees on credit products	$	5,385		$	4,031		$	9,301		$	6,994
Changes in fair value of loans and fees receivable recorded at fair value	8,342			26,942			25,065			82,871
Changes in fair value of notes payable associated with structured financings recorded at fair value	(970		)	(16,073		)	(15,575		)	(25,390		)
Other	(2,538		)	(469		)	(1,766		)	(177		)
Total fees and related income on earning assets	$	10,219		$	14,431		$	17,025		$	64,298