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Significant Accounting Policies and Consolidated Financial Statement Components (Policies) | 6 Months Ended
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Jun. 30, 2016
Accounting Policies [Abstract] |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates We prepare our consolidated financial statements in accordance with generally accepted accounting principles in the U.S. (“GAAP”), under which we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of our consolidated financial statements, as well as the reported amounts of revenues and expenses during each reporting period. We base these estimates on information available to us as of the date of the financial statements. Actual results could differ materially from these estimates. Certain estimates, such as credit losses, payment rates, costs of funds, discount rates and the yields earned on credit card receivables, significantly affect the reported amount of credit card receivables that we report at fair value and our notes payable associated with structured financings, at fair value; these estimates likewise affect the changes in these amounts reflected within our fees and related income on earning assets line item on our consolidated statements of operations. Additionally, estimates of future credit losses have a significant effect on loans and fees receivable, net, as shown on our consolidated balance sheets, as well as on the provision for losses on loans and fees receivable within our consolidated statements of operations. We have eliminated all significant intercompany balances and transactions for financial reporting purposes.
Loans and Fees Receivable | Loans and Fees Receivable Our loans and fees receivable include: (1) loans and fees receivable, net; (2) loans and fees receivable, at fair value; and (3) loans and fees receivable pledged as collateral under structured financings, at fair value. Components of our loans and fees receivable, net (in millions) are as follows:
| Balance at December 31, 2015 |  | Additions |  | Subtractions |  | Balance at June 30, 2016
Loans and fees receivable, gross | $ | 180.1 |  |  | $ | 227.3 |  |  | $ | (164.7 | ) |  | $ | 242.7 |
Deferred revenue | (16.7 | ) |  | (23.5 | ) |  | 19.9 |  |  | (20.3 | )
Allowance for uncollectible loans and fees receivable | (21.5 | ) |  | (15.5 | ) |  | 12.8 |  |  | (24.2 | )
Loans and fees receivable, net | $ | 141.9 |  |  | $ | 188.3 |  |  | $ | (132.0 | ) |  | $ | 198.2 |
| Balance at December 31, 2014 |  | Additions |  | Subtractions |  | Balance at June 30, 2015
Loans and fees receivable, gross | $ | 141.6 |  |  | $ | 159.2 |  |  | $ | (146.2 | ) |  | $ | 154.6 |
Deferred revenue | (15.7 | ) |  | (21.4 | ) |  | 18.9 |  |  | (18.2 | )
Allowance for uncollectible loans and fees receivable | (20.0 | ) |  | (9.1 | ) |  | 12.8 |  |  | (16.3 | )
Loans and fees receivable, net | $ | 105.9 |  |  | $ | 128.7 |  |  | $ | (114.5 | ) |  | $ | 120.1 |
As of June 30, 2016 and June 30, 2015, the weighted average remaining accretion period for the $20.3 million and $18.2 million, respectively, of deferred revenue reflected in the above tables was 11 months and 10 months, respectively. 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, 2016 |  | Credit Cards |  | Auto Finance |  | Other Unsecured Lending Products |  | Total
Allowance for uncollectible loans and fees receivable: |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | (1.3 | ) |  | $ | (1.8 | ) |  | $ | (16.8 | ) |  | $ | (19.9 | )
Provision for loan losses |  | 0.4 |  |  | (0.8 | ) |  | (10.4 | ) |  | (10.8 | )
Charge offs |  | 0.6 |  |  | 0.9 |  |  | 6.6 |  |  | 8.1 |
Recoveries |  | (0.8 | ) |  | (0.3 | ) |  | (0.5 | ) |  | (1.6 | )
Balance at end of period |  | $ | (1.1 | ) |  | $ | (2.0 | ) |  | $ | (21.1 | ) |  | $ | (24.2 | )
For the Six Months Ended June 30, 2016 |  | Credit Cards |  | Auto Finance |  | Other Unsecured Lending Products |  | Total
Allowance for uncollectible loans and fees receivable: |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | (1.2 | ) |  | $ | (1.7 | ) |  | $ | (18.6 | ) |  | $ | (21.5 | )
Provision for loan losses |  | 0.6 |  |  | (1.4 | ) |  | (14.7 | ) |  | (15.5 | )
Charge offs |  | 1.0 |  |  | 1.7 |  |  | 13.2 |  |  | 15.9 |
Recoveries |  | (1.5 | ) |  | (0.6 | ) |  | (1.0 | ) |  | (3.1 | )
Balance at end of period |  | $ | (1.1 | ) |  | $ | (2.0 | ) |  | $ | (21.1 | ) |  | $ | (24.2 | )
As of June 30, 2016 |  | Credit Cards |  | Auto Finance |  | Other Unsecured Lending Products |  | Total
Allowance for uncollectible loans and fees receivable: |  |  |  |  |  |  |  |
Balance at end of period individually evaluated for impairment |  | $ | — |  |  | $ | (0.2 | ) |  | $ | (0.7 | ) |  | $ | (0.9 | )
Balance at end of period collectively evaluated for impairment |  | $ | (1.1 | ) |  | $ | (1.8 | ) |  | $ | (20.4 | ) |  | $ | (23.3 | )
Loans and fees receivable: |  |  |  |  |  |  |  |  |  |  |  |
Loans and fees receivable, gross |  | $ | 5.4 |  |  | $ | 78.6 |  |  | $ | 158.7 |  |  | $ | 242.7 |
Loans and fees receivable individually evaluated for impairment |  | $ | — |  |  | $ | 0.3 |  |  | $ | 0.8 |  |  | $ | 1.1 |
Loans and fees receivable collectively evaluated for impairment |  | $ | 5.4 |  |  | $ | 78.3 |  |  | $ | 157.9 |  |  | $ | 241.6 |
For the Three Months Ended June 30, 2015 |  | Credit Cards |  | Auto Finance |  | Other Unsecured Lending Products |  | Total
Allowance for uncollectible loans and fees receivable: |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | (1.9 | ) |  | $ | (1.2 | ) |  | $ | (12.5 | ) |  | $ | (15.6 | )
Provision for loan losses |  | (0.4 | ) |  | (0.4 | ) |  | (5.2 | ) |  | (6.0 | )
Charge offs |  | 0.9 |  |  | 0.4 |  |  | 4.4 |  |  | 5.7 |
Recoveries |  | (0.1 | ) |  | (0.1 | ) |  | (0.2 | ) |  | (0.4 | )
Balance at end of period |  | $ | (1.5 | ) |  | $ | (1.3 | ) |  | $ | (13.5 | ) |  | $ | (16.3 | )
For the Six Months Ended June 30, 2015 |  | Credit Cards |  | Auto Finance |  | Other Unsecured Lending Products |  | Total
Allowance for uncollectible loans and fees receivable: |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | (2.7 | ) |  | $ | (1.2 | ) |  | $ | (16.1 | ) |  | $ | (20.0 | )
Provision for loan losses |  | (0.9 | ) |  | (0.6 | ) |  | (7.6 | ) |  | (9.1 | )
Charge offs |  | 2.3 |  |  | 0.9 |  |  | 10.9 |  |  | 14.1 |
Recoveries |  | (0.2 | ) |  | (0.4 | ) |  | (0.7 | ) |  | (1.3 | )
Balance at end of period |  | $ | (1.5 | ) |  | $ | (1.3 | ) |  | $ | (13.5 | ) |  | $ | (16.3 | )
As of December 31, 2015 |  | Credit Cards |  | Auto Finance |  | Other Unsecured Lending Products |  | Total
Allowance for uncollectible loans and fees receivable: |  |  |  |  |  |  |  |
Balance at end of period individually evaluated for impairment |  | $ | — |  |  | $ | (0.1 | ) |  | $ | (1.3 | ) |  | $ | (1.4 | )
Balance at end of period collectively evaluated for impairment |  | $ | (1.2 | ) |  | $ | (1.6 | ) |  | $ | (17.3 | ) |  | $ | (20.1 | )
Loans and fees receivable: |  |  |  |  |  |  |  |  |  |  |  |
Loans and fees receivable, gross |  | $ | 5.2 |  |  | $ | 76.0 |  |  | $ | 98.9 |  |  | $ | 180.1 |
Loans and fees receivable individually evaluated for impairment |  | $ | — |  |  | $ | 0.2 |  |  | $ | 1.5 |  |  | $ | 1.7 |
Loans and fees receivable collectively evaluated for impairment |  | $ | 5.2 |  |  | $ | 75.8 |  |  | $ | 97.4 |  |  | $ | 178.4 |
The components (in millions) of loans and fees receivable, gross as of the date of each of our consolidated balance sheets are as follows:
| June 30, 2016 |  | December 31, 2015
Current loans receivable | $ | 213.2 |  |  | $ | 150.0 |
Current fees receivable | 4.9 |  |  | 4.5 |
Delinquent loans and fees receivable | 24.6 |  |  | 25.6 |
Loans and fees receivable, gross | $ | 242.7 |  |  | $ | 180.1 |
An aging of our delinquent loans and fees receivable, gross (in millions) by class of receivable as of June 30, 2016 and December 31, 2015 is as follows:
Balance at June 30, 2016 |  | Credit Cards |  | Auto Finance |  | Other Unsecured Lending Products |  | Total
30-59 days past due |  | $ | 0.1 |  |  | $ | 6.8 |  |  | $ | 5.0 |  |  | $ | 11.9 |
60-89 days past due |  | 0.1 |  |  | 1.9 |  |  | 3.3 |  |  | 5.3 |
90 or more days past due |  | 0.5 |  |  | 1.3 |  |  | 5.6 |  |  | 7.4 |
Delinquent loans and fees receivable, gross |  | 0.7 |  |  | 10.0 |  |  | 13.9 |  |  | 24.6 |
Current loans and fees receivable, gross |  | 4.7 |  |  | 68.6 |  |  | 144.8 |  |  | 218.1 |
Total loans and fees receivable, gross |  | $ | 5.4 |  |  | $ | 78.6 |  |  | $ | 158.7 |  |  | $ | 242.7 |
Balance of loans 90 or more days past due and still accruing interest and fees |  | $ | — |  |  | $ | 1.0 |  |  | $ | — |  |  | $ | 1.0 |
Balance at December 31, 2015 | Credit Cards |  | Auto Finance |  | Other Unsecured Lending Products |  | Total
30-59 days past due | $ | 0.2 |  |  | $ | 6.9 |  |  | $ | 4.4 |  |  | $ | 11.5 |
60-89 days past due | 0.1 |  |  | 2.2 |  |  | 3.1 |  |  | 5.4 |
90 or more days past due | 0.4 |  |  | 1.8 |  |  | 6.5 |  |  | 8.7 |
Delinquent loans and fees receivable, gross | 0.7 |  |  | 10.9 |  |  | 14.0 |  |  | 25.6 |
Current loans and fees receivable, gross | 4.5 |  |  | 65.1 |  |  | 84.9 |  |  | 154.5 |
Total loans and fees receivable, gross | $ | 5.2 |  |  | $ | 76.0 |  |  | $ | 98.9 |  |  | $ | 180.1 |
Balance of loans 90 or more days past due and still accruing interest and fees | $ | — |  |  | $ | 1.5 |  |  | $ | — |  |  | $ | 1.5 |
Fees and Related Income on Earning Assets | 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,
| 2016 |  | 2015 |  | 2016 |  | 2015
Fees on credit products | $ | 856 |  |  | $ | 1,891 |  |  | $ | 1,655 |  |  | $ | 4,065 |
Changes in fair value of loans and fees receivable recorded at fair value | 527 |  |  | 1,981 |  |  | 2,425 |  |  | 3,212 |
Changes in fair value of notes payable associated with structured financings recorded at fair value | 939 |  |  | (420 | ) |  | 2,104 |  |  | (782 | )
Rental revenue | 3,119 |  |  | 9,278 |  |  | 7,333 |  |  | 19,387 |
Other | 437 |  |  | 21 |  |  | 248 |  |  | 88 |
Total fees and related income on earning assets | $ | 5,878 |  |  | $ | 12,751 |  |  | $ | 13,765 |  |  | $ | 25,970 |
The above changes in the fair value of loans and fees receivable recorded at fair value category exclude the impact of charge offs associated with these receivables which are separately stated in Net recovery of (losses upon) charge off of loans and fees receivable recorded at fair value, net of recoveries on our consolidated statements of operations. See Note 6, “Fair Values of Assets and Liabilities,” for further discussion of these receivables and their effects on our consolidated statements of operations.
Income Tax, Policy [Policy Text Block] | Income Taxes We experienced effective income tax expense rates of 70.6% and 15.1% for the three and six months ended June 30, 2016, respectively, compared to effective income tax expense rates of 50.8% and 19.6% for the three and six months ended June 30, 2015, respectively. Our effective income tax expense rate for the three months ended June 30, 2016 differs from the statutory rate principally due to the significance of our accruals of interest and penalties on unpaid tax liabilities relative to our $0.9 million of pre-tax income during this period. Our effective income tax expense rate for the six months ended June 30, 2016 differs from the statutory rate principally due to the income of our U.K. subsidiary (1) that is not subject to tax in the U.S., and (2) the U.K. tax on which was fully offset by the release of U.K. valuation allowances. Our effective income tax expense rate for the six months ended June 30, 2015 is significantly below statutory rates principally due to a favorable effective settlement we reached with the Internal Revenue Service (“IRS”) in February, 2015 relative to prior year accruals for uncertain tax positions and interest accruals thereon. We report potential accrued interest and penalties related to both our accrued liabilities for uncertain tax positions and unpaid tax liabilities within our income tax benefit or expense line item on our consolidated statements of operations. We likewise report the reversal of such accrued interest and penalties within the income tax benefit or expense line item to the extent that we resolve our liabilities for uncertain tax positions or unpaid tax liabilities in a manner favorable to our accruals therefor. During the three and six months ended June 30, 2016, our income tax expense includes $0.2 million and $0.4 million, respectively, for income tax-related interest and penalties. During the three and six months ended June 30, 2015, our income tax expense included $0.5 million and $0.7 million, respectively, accrued for income tax-related interest and penalties. In December 2014, we reached a settlement with the IRS concerning the tax treatment of net operating losses that we incurred in 2007 and 2008 and carried back to obtain refunds of federal income taxes paid in earlier years dating back to 2003. Our net unpaid income tax assessment associated with that settlement was $7.3 million at June 30, 2016; this amount excludes unpaid interest and penalties on the tax assessment, the accruals for which aggregated $3.1 million at June 30, 2016. The IRS is currently examining amended return claims we have made, which, if ultimately approved by the IRS or the courts, would eliminate the $7.3 million assessment and cause the reversal of the $3.1 million accrual we have made for interest and penalties thereon.
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments. The guidance requires an assessment of credit losses based on expected rather than incurred losses. This generally will result in the recognition of allowances for losses earlier than under current accounting guidance for trade and other receivables, held to maturity debt securities and other instruments. The standard will be adopted on a prospective basis with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. The Company has not yet determined the potential effects of adopting ASU 2016-13 on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting. The ASU eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively, as if the equity method had been in effect during all previous periods that the investment had been held. The ASU requires that the cost of acquiring the additional interest in the investee should be combined with the current basis of the investor’s previously held interest and the equity method of accounting should be adopted as of the date the investment becomes qualified for equity method accounting. No retroactive adjustment of the investment is required. The ASU also requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The ASU is effective for us January 1, 2017. The impact of adoption of this authoritative guidance is not expected to result in a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases, which would require lessees to recognize assets and liabilities for most leases, changing certain aspects of current lessor accounting, among other things. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. We have not yet determined the potential effects of adopting ASU 2016-02 on our consolidated financial statements. In April 2015, the FASB issued updated authoritative guidance related to debt issuance costs. The amendment modifies the presentation of unamortized debt issuance costs to present such amounts as a direct deduction from the face amount of the debt, similar to unamortized debt discounts and premiums, rather than as an asset. Amortization of the debt issuance costs continues to be reported as interest expense. The guidance was effective for us beginning January 1, 2016. The impact of adoption of this authoritative guidance did not result in a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 establishes a principles-based model under which revenue from a contract is allocated to the distinct performance obligations within the contract and recognized in income as each performance obligation is satisfied. Additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract is also required. In August 2015, the FASB delayed the effective date by one year and the guidance will now be effective for annual and interim periods beginning January 1, 2018 and early adoption is permitted. We do not plan to early adopt the guidance. We have not yet determined the potential effects of the adoption of ASU 2014-09 on our consolidated financial statements.
Subsequent Events | Subsequent Events We evaluate subsequent events that occur after our consolidated balance sheet date but before our consolidated financial statements are issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence with respect to conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements; and (2) nonrecognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date. We have evaluated subsequent events occurring after June 30, 2016, and based on our evaluation we did not identify any recognized or nonrecognized subsequent events that would have required further adjustments to our consolidated financial statements.
Significant Accounting Policies and Consolidated Financial Statement Components | Significant Accounting Policies and Consolidated Financial Statement Components The following is a summary of significant accounting policies we follow in preparing our consolidated financial statements, as well as a description of significant components of our consolidated financial statements. Basis of Presentation and Use of Estimates We prepare our consolidated financial statements in accordance with generally accepted accounting principles in the U.S. (“GAAP”), under which we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of our consolidated financial statements, as well as the reported amounts of revenues and expenses during each reporting period. We base these estimates on information available to us as of the date of the financial statements. Actual results could differ materially from these estimates. Certain estimates, such as credit losses, payment rates, costs of funds, discount rates and the yields earned on credit card receivables, significantly affect the reported amount of credit card receivables that we report at fair value and our notes payable associated with structured financings, at fair value; these estimates likewise affect the changes in these amounts reflected within our fees and related income on earning assets line item on our consolidated statements of operations. Additionally, estimates of future credit losses have a significant effect on loans and fees receivable, net, as shown on our consolidated balance sheets, as well as on the provision for losses on loans and fees receivable within our consolidated statements of operations. We have eliminated all significant intercompany balances and transactions for financial reporting purposes. Loans and Fees Receivable Our loans and fees receivable include: (1) loans and fees receivable, net; (2) loans and fees receivable, at fair value; and (3) loans and fees receivable pledged as collateral under structured financings, at fair value. Components of our loans and fees receivable, net (in millions) are as follows:
| Balance at December 31, 2015 |  | Additions |  | Subtractions |  | Balance at June 30, 2016
Loans and fees receivable, gross | $ | 180.1 |  |  | $ | 227.3 |  |  | $ | (164.7 | ) |  | $ | 242.7 |
Deferred revenue | (16.7 | ) |  | (23.5 | ) |  | 19.9 |  |  | (20.3 | )
Allowance for uncollectible loans and fees receivable | (21.5 | ) |  | (15.5 | ) |  | 12.8 |  |  | (24.2 | )
Loans and fees receivable, net | $ | 141.9 |  |  | $ | 188.3 |  |  | $ | (132.0 | ) |  | $ | 198.2 |
| Balance at December 31, 2014 |  | Additions |  | Subtractions |  | Balance at June 30, 2015
Loans and fees receivable, gross | $ | 141.6 |  |  | $ | 159.2 |  |  | $ | (146.2 | ) |  | $ | 154.6 |
Deferred revenue | (15.7 | ) |  | (21.4 | ) |  | 18.9 |  |  | (18.2 | )
Allowance for uncollectible loans and fees receivable | (20.0 | ) |  | (9.1 | ) |  | 12.8 |  |  | (16.3 | )
Loans and fees receivable, net | $ | 105.9 |  |  | $ | 128.7 |  |  | $ | (114.5 | ) |  | $ | 120.1 |
As of June 30, 2016 and June 30, 2015, the weighted average remaining accretion period for the $20.3 million and $18.2 million, respectively, of deferred revenue reflected in the above tables was 11 months and 10 months, respectively. 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, 2016 |  | Credit Cards |  | Auto Finance |  | Other Unsecured Lending Products |  | Total
Allowance for uncollectible loans and fees receivable: |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | (1.3 | ) |  | $ | (1.8 | ) |  | $ | (16.8 | ) |  | $ | (19.9 | )
Provision for loan losses |  | 0.4 |  |  | (0.8 | ) |  | (10.4 | ) |  | (10.8 | )
Charge offs |  | 0.6 |  |  | 0.9 |  |  | 6.6 |  |  | 8.1 |
Recoveries |  | (0.8 | ) |  | (0.3 | ) |  | (0.5 | ) |  | (1.6 | )
Balance at end of period |  | $ | (1.1 | ) |  | $ | (2.0 | ) |  | $ | (21.1 | ) |  | $ | (24.2 | )
For the Six Months Ended June 30, 2016 |  | Credit Cards |  | Auto Finance |  | Other Unsecured Lending Products |  | Total
Allowance for uncollectible loans and fees receivable: |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | (1.2 | ) |  | $ | (1.7 | ) |  | $ | (18.6 | ) |  | $ | (21.5 | )
Provision for loan losses |  | 0.6 |  |  | (1.4 | ) |  | (14.7 | ) |  | (15.5 | )
Charge offs |  | 1.0 |  |  | 1.7 |  |  | 13.2 |  |  | 15.9 |
Recoveries |  | (1.5 | ) |  | (0.6 | ) |  | (1.0 | ) |  | (3.1 | )
Balance at end of period |  | $ | (1.1 | ) |  | $ | (2.0 | ) |  | $ | (21.1 | ) |  | $ | (24.2 | )
As of June 30, 2016 |  | Credit Cards |  | Auto Finance |  | Other Unsecured Lending Products |  | Total
Allowance for uncollectible loans and fees receivable: |  |  |  |  |  |  |  |
Balance at end of period individually evaluated for impairment |  | $ | — |  |  | $ | (0.2 | ) |  | $ | (0.7 | ) |  | $ | (0.9 | )
Balance at end of period collectively evaluated for impairment |  | $ | (1.1 | ) |  | $ | (1.8 | ) |  | $ | (20.4 | ) |  | $ | (23.3 | )
Loans and fees receivable: |  |  |  |  |  |  |  |  |  |  |  |
Loans and fees receivable, gross |  | $ | 5.4 |  |  | $ | 78.6 |  |  | $ | 158.7 |  |  | $ | 242.7 |
Loans and fees receivable individually evaluated for impairment |  | $ | — |  |  | $ | 0.3 |  |  | $ | 0.8 |  |  | $ | 1.1 |
Loans and fees receivable collectively evaluated for impairment |  | $ | 5.4 |  |  | $ | 78.3 |  |  | $ | 157.9 |  |  | $ | 241.6 |
For the Three Months Ended June 30, 2015 |  | Credit Cards |  | Auto Finance |  | Other Unsecured Lending Products |  | Total
Allowance for uncollectible loans and fees receivable: |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | (1.9 | ) |  | $ | (1.2 | ) |  | $ | (12.5 | ) |  | $ | (15.6 | )
Provision for loan losses |  | (0.4 | ) |  | (0.4 | ) |  | (5.2 | ) |  | (6.0 | )
Charge offs |  | 0.9 |  |  | 0.4 |  |  | 4.4 |  |  | 5.7 |
Recoveries |  | (0.1 | ) |  | (0.1 | ) |  | (0.2 | ) |  | (0.4 | )
Balance at end of period |  | $ | (1.5 | ) |  | $ | (1.3 | ) |  | $ | (13.5 | ) |  | $ | (16.3 | )
For the Six Months Ended June 30, 2015 |  | Credit Cards |  | Auto Finance |  | Other Unsecured Lending Products |  | Total
Allowance for uncollectible loans and fees receivable: |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | (2.7 | ) |  | $ | (1.2 | ) |  | $ | (16.1 | ) |  | $ | (20.0 | )
Provision for loan losses |  | (0.9 | ) |  | (0.6 | ) |  | (7.6 | ) |  | (9.1 | )
Charge offs |  | 2.3 |  |  | 0.9 |  |  | 10.9 |  |  | 14.1 |
Recoveries |  | (0.2 | ) |  | (0.4 | ) |  | (0.7 | ) |  | (1.3 | )
Balance at end of period |  | $ | (1.5 | ) |  | $ | (1.3 | ) |  | $ | (13.5 | ) |  | $ | (16.3 | )
As of December 31, 2015 |  | Credit Cards |  | Auto Finance |  | Other Unsecured Lending Products |  | Total
Allowance for uncollectible loans and fees receivable: |  |  |  |  |  |  |  |
Balance at end of period individually evaluated for impairment |  | $ | — |  |  | $ | (0.1 | ) |  | $ | (1.3 | ) |  | $ | (1.4 | )
Balance at end of period collectively evaluated for impairment |  | $ | (1.2 | ) |  | $ | (1.6 | ) |  | $ | (17.3 | ) |  | $ | (20.1 | )
Loans and fees receivable: |  |  |  |  |  |  |  |  |  |  |  |
Loans and fees receivable, gross |  | $ | 5.2 |  |  | $ | 76.0 |  |  | $ | 98.9 |  |  | $ | 180.1 |
Loans and fees receivable individually evaluated for impairment |  | $ | — |  |  | $ | 0.2 |  |  | $ | 1.5 |  |  | $ | 1.7 |
Loans and fees receivable collectively evaluated for impairment |  | $ | 5.2 |  |  | $ | 75.8 |  |  | $ | 97.4 |  |  | $ | 178.4 |
The components (in millions) of loans and fees receivable, gross as of the date of each of our consolidated balance sheets are as follows:
| June 30, 2016 |  | December 31, 2015
Current loans receivable | $ | 213.2 |  |  | $ | 150.0 |
Current fees receivable | 4.9 |  |  | 4.5 |
Delinquent loans and fees receivable | 24.6 |  |  | 25.6 |
Loans and fees receivable, gross | $ | 242.7 |  |  | $ | 180.1 |
An aging of our delinquent loans and fees receivable, gross (in millions) by class of receivable as of June 30, 2016 and December 31, 2015 is as follows:
Balance at June 30, 2016 |  | Credit Cards |  | Auto Finance |  | Other Unsecured Lending Products |  | Total
30-59 days past due |  | $ | 0.1 |  |  | $ | 6.8 |  |  | $ | 5.0 |  |  | $ | 11.9 |
60-89 days past due |  | 0.1 |  |  | 1.9 |  |  | 3.3 |  |  | 5.3 |
90 or more days past due |  | 0.5 |  |  | 1.3 |  |  | 5.6 |  |  | 7.4 |
Delinquent loans and fees receivable, gross |  | 0.7 |  |  | 10.0 |  |  | 13.9 |  |  | 24.6 |
Current loans and fees receivable, gross |  | 4.7 |  |  | 68.6 |  |  | 144.8 |  |  | 218.1 |
Total loans and fees receivable, gross |  | $ | 5.4 |  |  | $ | 78.6 |  |  | $ | 158.7 |  |  | $ | 242.7 |
Balance of loans 90 or more days past due and still accruing interest and fees |  | $ | — |  |  | $ | 1.0 |  |  | $ | — |  |  | $ | 1.0 |
Balance at December 31, 2015 | Credit Cards |  | Auto Finance |  | Other Unsecured Lending Products |  | Total
30-59 days past due | $ | 0.2 |  |  | $ | 6.9 |  |  | $ | 4.4 |  |  | $ | 11.5 |
60-89 days past due | 0.1 |  |  | 2.2 |  |  | 3.1 |  |  | 5.4 |
90 or more days past due | 0.4 |  |  | 1.8 |  |  | 6.5 |  |  | 8.7 |
Delinquent loans and fees receivable, gross | 0.7 |  |  | 10.9 |  |  | 14.0 |  |  | 25.6 |
Current loans and fees receivable, gross | 4.5 |  |  | 65.1 |  |  | 84.9 |  |  | 154.5 |
Total loans and fees receivable, gross | $ | 5.2 |  |  | $ | 76.0 |  |  | $ | 98.9 |  |  | $ | 180.1 |
Balance of loans 90 or more days past due and still accruing interest and fees | $ | — |  |  | $ | 1.5 |  |  | $ | — |  |  | $ | 1.5 |
Income Taxes We experienced effective income tax expense rates of 70.6% and 15.1% for the three and six months ended June 30, 2016, respectively, compared to effective income tax expense rates of 50.8% and 19.6% for the three and six months ended June 30, 2015, respectively. Our effective income tax expense rate for the three months ended June 30, 2016 differs from the statutory rate principally due to the significance of our accruals of interest and penalties on unpaid tax liabilities relative to our $0.9 million of pre-tax income during this period. Our effective income tax expense rate for the six months ended June 30, 2016 differs from the statutory rate principally due to the income of our U.K. subsidiary (1) that is not subject to tax in the U.S., and (2) the U.K. tax on which was fully offset by the release of U.K. valuation allowances. Our effective income tax expense rate for the six months ended June 30, 2015 is significantly below statutory rates principally due to a favorable effective settlement we reached with the Internal Revenue Service (“IRS”) in February, 2015 relative to prior year accruals for uncertain tax positions and interest accruals thereon. We report potential accrued interest and penalties related to both our accrued liabilities for uncertain tax positions and unpaid tax liabilities within our income tax benefit or expense line item on our consolidated statements of operations. We likewise report the reversal of such accrued interest and penalties within the income tax benefit or expense line item to the extent that we resolve our liabilities for uncertain tax positions or unpaid tax liabilities in a manner favorable to our accruals therefor. During the three and six months ended June 30, 2016, our income tax expense includes $0.2 million and $0.4 million, respectively, for income tax-related interest and penalties. During the three and six months ended June 30, 2015, our income tax expense included $0.5 million and $0.7 million, respectively, accrued for income tax-related interest and penalties. In December 2014, we reached a settlement with the IRS concerning the tax treatment of net operating losses that we incurred in 2007 and 2008 and carried back to obtain refunds of federal income taxes paid in earlier years dating back to 2003. Our net unpaid income tax assessment associated with that settlement was $7.3 million at June 30, 2016; this amount excludes unpaid interest and penalties on the tax assessment, the accruals for which aggregated $3.1 million at June 30, 2016. The IRS is currently examining amended return claims we have made, which, if ultimately approved by the IRS or the courts, would eliminate the $7.3 million assessment and cause the reversal of the $3.1 million accrual we have made for interest and penalties thereon. 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,
| 2016 |  | 2015 |  | 2016 |  | 2015
Fees on credit products | $ | 856 |  |  | $ | 1,891 |  |  | $ | 1,655 |  |  | $ | 4,065 |
Changes in fair value of loans and fees receivable recorded at fair value | 527 |  |  | 1,981 |  |  | 2,425 |  |  | 3,212 |
Changes in fair value of notes payable associated with structured financings recorded at fair value | 939 |  |  | (420 | ) |  | 2,104 |  |  | (782 | )
Rental revenue | 3,119 |  |  | 9,278 |  |  | 7,333 |  |  | 19,387 |
Other | 437 |  |  | 21 |  |  | 248 |  |  | 88 |
Total fees and related income on earning assets | $ | 5,878 |  |  | $ | 12,751 |  |  | $ | 13,765 |  |  | $ | 25,970 |
The above changes in the fair value of loans and fees receivable recorded at fair value category exclude the impact of charge offs associated with these receivables which are separately stated in Net recovery of (losses upon) charge off of loans and fees receivable recorded at fair value, net of recoveries on our consolidated statements of operations. See Note 6, “Fair Values of Assets and Liabilities,” for further discussion of these receivables and their effects on our consolidated statements of operations. Recent Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments. The guidance requires an assessment of credit losses based on expected rather than incurred losses. This generally will result in the recognition of allowances for losses earlier than under current accounting guidance for trade and other receivables, held to maturity debt securities and other instruments. The standard will be adopted on a prospective basis with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. The Company has not yet determined the potential effects of adopting ASU 2016-13 on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting. The ASU eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively, as if the equity method had been in effect during all previous periods that the investment had been held. The ASU requires that the cost of acquiring the additional interest in the investee should be combined with the current basis of the investor’s previously held interest and the equity method of accounting should be adopted as of the date the investment becomes qualified for equity method accounting. No retroactive adjustment of the investment is required. The ASU also requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The ASU is effective for us January 1, 2017. The impact of adoption of this authoritative guidance is not expected to result in a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases, which would require lessees to recognize assets and liabilities for most leases, changing certain aspects of current lessor accounting, among other things. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. We have not yet determined the potential effects of adopting ASU 2016-02 on our consolidated financial statements. In April 2015, the FASB issued updated authoritative guidance related to debt issuance costs. The amendment modifies the presentation of unamortized debt issuance costs to present such amounts as a direct deduction from the face amount of the debt, similar to unamortized debt discounts and premiums, rather than as an asset. Amortization of the debt issuance costs continues to be reported as interest expense. The guidance was effective for us beginning January 1, 2016. The impact of adoption of this authoritative guidance did not result in a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 establishes a principles-based model under which revenue from a contract is allocated to the distinct performance obligations within the contract and recognized in income as each performance obligation is satisfied. Additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract is also required. In August 2015, the FASB delayed the effective date by one year and the guidance will now be effective for annual and interim periods beginning January 1, 2018 and early adoption is permitted. We do not plan to early adopt the guidance. We have not yet determined the potential effects of the adoption of ASU 2014-09 on our consolidated financial statements. Subsequent Events We evaluate subsequent events that occur after our consolidated balance sheet date but before our consolidated financial statements are issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence with respect to conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements; and (2) nonrecognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date. We have evaluated subsequent events occurring after June 30, 2016, and based on our evaluation we did not identify any recognized or nonrecognized subsequent events that would have required further adjustments to our consolidated financial statements.

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