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Document And Entity Information (USD $)
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9 Months Ended | ||
|---|---|---|---|
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Sep. 30, 2011
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Nov. 08, 2011
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Jun. 30, 2011
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| Document and Entity Information [Abstract] | |||
| Entity Registrant Name | CONSUMER PORTFOLIO SERVICES INC | ||
| Document Type | 10-Q | ||
| Current Fiscal Year End Date | --12-31 | ||
| Entity Common Stock, Shares Outstanding | 19,678,773 | ||
| Entity Public Float | $ 18,740,264 | ||
| Amendment Flag | false | ||
| Entity Central Index Key | 0000889609 | ||
| Entity Current Reporting Status | Yes | ||
| Entity Voluntary Filers | No | ||
| Entity Filer Category | Smaller Reporting Company | ||
| Entity Well-known Seasoned Issuer | No | ||
| Document Period End Date | Sep. 30, 2011 | ||
| Document Fiscal Year Focus | 2011 | ||
| Document Fiscal Period Focus | Q3 |
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- Details
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- Definition
If the value is true, then the document as an amendment to previously-filed/accepted document. No definition available.
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- Definition
End date of current fiscal year in the format --MM-DD. No definition available.
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- Definition
This is focus fiscal period of the document report. For a first quarter 2006 quarterly report, which may also provide financial information from prior periods, the first fiscal quarter should be given as the fiscal period focus. Values: FY, Q1, Q2, Q3, Q4, H1, H2, M9, T1, T2, T3, M8, CY. No definition available.
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- Definition
This is focus fiscal year of the document report in CCYY format. For a 2006 annual report, which may also provide financial information from prior periods, fiscal 2006 should be given as the fiscal year focus. Example: 2006. No definition available.
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- Definition
The end date of the period reflected on the cover page if a periodic report. For all other reports and registration statements containing historical data, it is the date up through which that historical data is presented. If there is no historical data in the report, use the filing date. The format of the date is CCYY-MM-DD. No definition available.
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- Definition
The type of document being provided (such as 10-K, 10-Q, N-1A, etc). The document type is limited to the same value as the supporting SEC submission type, minus any "/A" suffix. The acceptable values are as follows: S-1, S-3, S-4, S-11, F-1, F-3, F-4, F-9, F-10, 6-K, 8-K, 10, 10-K, 10-Q, 20-F, 40-F, N-1A, 485BPOS, 497, NCSR, N-CSR, N-CSRS, N-Q, 10-KT, 10-QT, 20-FT, POS AM and Other. No definition available.
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- Definition
A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Indicate number of shares outstanding of each of registrant's classes of common stock, as of latest practicable date. Where multiple classes exist define each class by adding class of stock items such as Common Class A [Member], Common Class B [Member] onto the Instrument [Domain] of the Entity Listings, Instrument No definition available.
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- Definition
Indicate "Yes" or "No" whether registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. This information should be based on the registrant's current or most recent filing containing the related disclosure. No definition available.
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- Definition
Indicate whether the registrant is one of the following: (1) Large Accelerated Filer, (2) Accelerated Filer, (3) Non-accelerated Filer, or (4) Smaller Reporting Company. Definitions of these categories are stated in Rule 12b-2 of the Exchange Act. This information should be based on the registrant's current or most recent filing containing the related disclosure. No definition available.
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- Definition
State aggregate market value of voting and non-voting common equity held by non-affiliates computed by reference to price at which the common equity was last sold, or average bid and asked price of such common equity, as of the last business day of registrant's most recently completed second fiscal quarter. The public float should be reported on the cover page of the registrants form 10K. No definition available.
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- Definition
The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Indicate "Yes" or "No" if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. No definition available.
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- Definition
Indicate "Yes" or "No" if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Is used on Form Type: 10-K, 10-Q, 8-K, 20-F, 6-K, 10-K/A, 10-Q/A, 20-F/A, 6-K/A, N-CSR, N-Q, N-1A. No definition available.
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- Details
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- Definition
Sum of the carrying values as of the balance sheet date of obligations incurred through that date and due within one year (or the operating cycle, if longer), including liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received, taxes, interest, rent and utilities, accrued salaries and bonuses, payroll taxes and fringe benefits. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount owed to the reporting entity by counterparties in securitized loan transactions. No definition available.
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- Definition
Interest, dividends, rents, ancillary and other revenues earned but not yet received by the entity on its investments. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits are not generally reported as cash and cash equivalents. Includes cash and cash equivalents associated with the entity's continuing operations. Excludes cash and cash equivalents associated with the disposal group (and discontinued operation). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Represents the caption on the face of the balance sheet to indicate that the entity has entered into (1) purchase or supply arrangements that will require expending a portion of its resources to meet the terms thereof, and (2) is exposed to potential losses or, less frequently, gains, arising from (a) possible claims against a company's resources due to future performance under contract terms, and (b) possible losses or likely gains from uncertainties that will ultimately be resolved when one or more future events that are deemed likely to occur do occur or fail to occur. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Aggregate par or stated value of issued nonredeemable common stock (or common stock redeemable solely at the option of the issuer). This item includes treasury stock repurchased by the entity. Note: elements for number of nonredeemable common shares, par value and other disclosure concepts are in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Net amount of long-term deferred finance costs capitalized at the end of the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The noncurrent portion as of the balance sheet date of the aggregate carrying amount of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; after the valuation allowance, if any, to reduce such amount to net realizable value. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, is classified according to the expected reversal date of the temporary difference. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
This element represents a certain statement of financial position asset caption which represents a class of assets, or which may include an individual asset, measured at fair value on a recurring basis. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of the recorded investment in a contractual right to receive money on demand or on fixed or determinable dates that is recognized as an asset in the creditor's statement of financial position. Examples include, but are not limited to, accounts receivable (with terms exceeding one year), notes receivable and receivables relating to lessor's rights to payments from leases other than operating leases that have been recorded as assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
A valuation allowance for financing receivables that are expected to be uncollectible. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total of all Liabilities and Stockholders' Equity items (or Partners' Capital, as applicable), including the portion of equity attributable to noncontrolling interests, if any. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The carrying value as of the balance sheet date of the current portion of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
An amount representing an agreement for an unconditional promise by the maker to pay the Company (holder) a definite sum of money within one year from the balance sheet date (or the normal operating cycle, whichever is longer), net of any write-downs taken for collection uncertainty on the part of the holder. Such amount may include accrued interest receivable in accordance with the terms of the debt. The debt also may contain provisions and related items including a discount or premium, payable on demand, secured, or unsecured, interest bearing or noninterest bearing, among a myriad of other features and characteristics. This amount does not include amounts related to receivables held-for-sale. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount for notes payable (written promise to pay), due to related parties. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Aggregate carrying amount, as of the balance sheet date, of noncurrent assets not separately disclosed in the balance sheet. Noncurrent assets are expected to be realized or consumed after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Secured financing other than securities sold under agreements to repurchase and securities loaned. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Aggregate par or stated value of issued nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer). This item includes treasury stock repurchased by the entity. Note: elements for number of nonredeemable preferred shares, par value and other disclosure concepts are in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The carrying amounts of cash and cash equivalent items which are restricted as to withdrawal or usage. Restrictions may include legally restricted deposits held as compensating balances against short-term borrowing arrangements, contracts entered into with others, or entity statements of intention with regard to particular deposits; however, time deposits and short-term certificates of deposit are not generally included in legally restricted deposits. Excludes compensating balance arrangements that are not agreements which legally restrict the use of cash amounts shown on the balance sheet. For a classified balance sheet represents the current portion only (the noncurrent portion has a separate concept); there is a separate and distinct element for unclassified presentations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cumulative amount of the reporting entity's undistributed earnings or deficit. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying value as of the balance sheet date , including the current and noncurrent portions, of collateralized debt obligations (with maturities initially due after one year or beyond the operating cycle, if longer). Such obligations include mortgage loans, chattel loans, and any other borrowings secured by assets of the borrower. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying value as of the balance sheet date of other collateralized debt obligations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Including the current and noncurrent portions, carrying value as of the balance sheet date of subordinated debt (with initial maturities beyond one year or beyond the operating cycle if longer). Subordinated debt places a lender in a lien position behind debt having a higher priority of repayment in liquidation of the entity's assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)
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Sep. 30, 2011
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Dec. 31, 2010
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|---|---|---|
| Preferred Stock par value (in Dollars per share) | $ 1 | $ 1 |
| Preferred Stock shares authorized | 5,000,000 | 5,000,000 |
| Preferred Stock shares issued | 0 | 0 |
| Common stock par value (in Dollars per share) | $ 0 | $ 0 |
| Common stock shares authorized | 75,000,000 | 75,000,000 |
| Common stock shares issued | 19,921,518 | 18,122,810 |
| Common stock shares outstanding | 19,921,518 | 18,122,810 |
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Series A Preferred Stock [Member]
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| Preferred Stock par value (in Dollars per share) | $ 1 | $ 1 |
| Preferred Stock shares authorized | 5,000,000 | 5,000,000 |
| Preferred Stock shares issued | 0 | 0 |
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Series B Preferred Stock [Member]
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| Preferred Stock par value (in Dollars per share) | $ 1 | $ 1 |
| Preferred Stock shares authorized | 1,870 | 1,870 |
| Preferred Stock shares issued | 1,870 | 1,870 |
| Series B convertible preferred stock shares outstanding | 1,870 | 1,870 |
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- Definition
Face amount or stated value of common stock per share; generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The maximum number of common shares permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total number of common shares of an entity that have been sold or granted to shareholders (includes common shares that were issued, repurchased and remain in the treasury). These shares represent capital invested by the firm's shareholders and owners, and may be all or only a portion of the number of shares authorized. Shares issued include shares outstanding and shares held in the treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total number of shares of common stock held by shareholders. May be all or portion of the number of common shares authorized. These shares represent the ownership interest of the common shareholders. Shares outstanding equals shares issued minus shares held in treasury and other adjustments, if any. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Face amount or stated value per share of nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer); generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The maximum number of nonredeemable preferred shares (or preferred stock redeemable solely at the option of the issuer) permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total number of nonredeemable preferred shares (or preferred stock redeemable solely at the option of the issuer) issued to shareholders (includes related preferred shares that were issued, repurchased, and remain in the treasury). May be all or portion of the number of preferred shares authorized. Excludes preferred shares that are classified as debt. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Aggregate share number for all nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer) held by stockholders. Does not include preferred shares that have been repurchased. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2011
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Sep. 30, 2010
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Sep. 30, 2011
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Sep. 30, 2010
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| Interest income | $ 30,236 | $ 32,925 | $ 86,632 | $ 107,072 |
| Servicing fees | 986 | 1,768 | 3,530 | 6,119 |
| Other income | 2,592 | 2,105 | 7,201 | 6,724 |
| 33,814 | 36,798 | 97,363 | 119,915 | |
| Employee costs | 8,257 | 7,599 | 23,343 | 25,075 |
| General and administrative | 3,286 | 3,593 | 10,697 | 15,048 |
| Interest | 19,011 | 19,001 | 57,377 | 62,242 |
| Provision for credit losses | 3,982 | 7,036 | 12,034 | 25,742 |
| Marketing | 2,343 | 1,068 | 5,777 | 2,573 |
| Occupancy | 811 | 763 | 2,334 | 2,303 |
| Depreciation and amortization | 170 | 180 | 496 | 478 |
| 37,860 | 39,240 | 112,058 | 133,461 | |
| Loss before income tax expense | (4,046) | (2,442) | (14,695) | (13,546) |
| Income tax expense | 1,000 | 4,600 | ||
| Net loss | $ (4,046) | $ (3,442) | $ (14,695) | $ (18,146) |
| Basic (in Dollars per share) | $ (0.20) | $ (0.20) | $ (0.78) | $ (1.04) |
| Diluted (in Dollars per share) | $ (0.20) | $ (0.20) | $ (0.78) | $ (1.04) |
| Basic (in Shares) | 19,821 | 17,309 | 18,794 | 17,530 |
| Diluted (in Shares) | 19,821 | 17,309 | 18,794 | 17,530 |
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- Definition
The current period expense charged against earnings on long-lived, physical assets not used in production, and which are not intended for resale, to allocate or recognize the cost of such assets over their useful lives; or to record the reduction in book value of an intangible asset over the benefit period of such asset; or to reflect consumption during the period of an asset that is not used in production. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The aggregate direct operating costs incurred during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The aggregate total of expenses of managing and administering the affairs of an entity, including affiliates of the reporting entity, which are not directly or indirectly associated with the manufacture, sale or creation of a product or product line. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Sum of operating profit and nonoperating income or expense before Income or Loss from equity method investments, income taxes, extraordinary items, and noncontrolling interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The sum of the current income tax expense or benefit and the deferred income tax expense or benefit pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The cost of borrowed funds accounted for as interest that was charged against earnings during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Income derived from investments in debt securities and on cash and cash equivalents the earnings of which reflect the time value of money or transactions in which the payments are for the use or forbearance of money. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The portion of profit or loss for the period, net of income taxes, which is attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Amount of net occupancy expense that may include items, such as depreciation of facilities and equipment, lease expenses, property taxes and property and casualty insurance expense. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The total amount of other operating income, the components of which are not separately disclosed on the income statement, from items that are associated with the entity's normal revenue producing operation. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The sum of the periodic provision charged to operations, based on an assessment of the uncollectibility of the loan and lease portfolio, the offset to which is either added to or deducted from the allowance account for the purpose of reducing loan receivable and leases to an amount that approximates their net realizable value (the amount expected to be collected). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Aggregate revenue recognized during the period (derived from goods sold, services rendered, insurance premiums, or other activities that constitute an entity's earning process). For financial services companies, also includes investment and interest income, and sales and trading gains. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Expenditures for salaries other than officers. Does not include allocated share-based compensation, pension and post-retirement benefit expense or other labor-related non-salary expense. For commercial and industrial companies, excludes any direct and overhead labor that is included in cost of goods sold. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The aggregate total amount of expenses directly related to the marketing or selling of products or services. No definition available.
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| X | ||||||||||
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- Definition
Income from servicing real estate mortgages, credit cards, and other financial assets held by others. Also include any premiums received in lieu of regular servicing fees on such loans only as earned over the life of the loans. May also be net of any related impairment of fair value of capitalized service costs. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The average number of shares or units issued and outstanding that are used in calculating diluted EPS or earnings per unit (EPU), determined based on the timing of issuance of shares or units in the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Number of [basic] shares or units, after adjustment for contingently issuable shares or units and other shares or units not deemed outstanding, determined by relating the portion of time within a reporting period that common shares or units have been outstanding to the total time in that period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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| X | ||||||||||
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- Definition
Debt secured by receivables measured at fair value No definition available.
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| X | ||||||||||
|
- Definition
Purchase of finance receivables portfolio No definition available.
|
| X | ||||||||||
|
- Definition
The component of interest expense representing the noncash expenses charged against earnings in the period to amortize debt discount and premium associated with the related debt instruments. Excludes amortization of financing costs. Alternate caption: Noncash Interest Expense. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
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- Definition
The amount of amortization of deferred charges applied against earnings during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The component of interest expense comprised of the periodic charge against earnings over the life of the financing arrangement to which such costs relate. Alternate captions include Noncash Interest Expense. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The component of interest expense representing the noncash expenses charged against earnings in the period to allocate debt discount and premium, and the costs to issue debt and obtain financing over the related debt instruments. Alternate captions include Noncash Interest Expense. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits are not generally reported as cash and cash equivalents. Includes cash and cash equivalents associated with the entity's continuing operations. Excludes cash and cash equivalents associated with the disposal group (and discontinued operation). Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
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- Definition
The increase (decrease) during the reporting period in cash and cash equivalents. While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
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- Definition
Net increase or decrease in the carrying amount of the debt instrument for the period for reasons other than accrued but unpaid interest, additional borrowings, forgiveness and repayments. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
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- Definition
The aggregate expense recognized in the current period that allocates the cost of tangible assets, intangible assets, or depleting assets to periods that benefit from use of the assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The amount of cash paid during the current period to foreign, federal, state, and local authorities as taxes on income, net of any cash received during the current period as refunds for the overpayment of taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The increase (decrease) during the reporting period in the amounts payable to vendors for goods and services received and the amount of obligations and expenses incurred but not paid. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The increase (decrease) during the reporting period in the amount due from borrowers for interest payments. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
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- Definition
The increase (decrease) during the reporting period in the aggregate value of all inventory held by the reporting entity, associated with underlying transactions that are classified as operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The increase (decrease) during the reporting period in other assets used in operating activities not separately disclosed in the statement of cash flows. May include changes in other current assets, other noncurrent assets, or a combination of other current and noncurrent assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The net cash inflow or outflow for the increase (decrease) associated with funds that are not available for withdrawal or use (such as funds held in escrow) and are associated with underlying transactions that are classified as operating activities. This may include cash restricted for regulatory purposes. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The amount of interest income and other income recognized during the period. Included in this element is interest derived from investments in debt securities, cash and cash equivalents, and other investments which reflect the time value of money or transactions in which the payments are for the use or forbearance of money and other income from ancillary business-related activities (that is, excluding major activities considered part of the normal operations of the business). No definition available.
|
| X | ||||||||||
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- Definition
The amount of cash paid for interest during the period net of cash paid for interest that is capitalized. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The fair value of restricted stock or stock options granted to nonemployees as payment for services rendered or acknowledged claims. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The net cash inflow or outflow from financing activity for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The net cash inflow or outflow from investing activity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
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- Definition
The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
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- Definition
The portion of profit or loss for the period, net of income taxes, which is attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
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- Definition
The net amount paid or received by the reporting entity associated with purchase (sale or collection) of loans receivable arising from the financing of goods and services. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
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- Definition
The cash outflow to reacquire common stock during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
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- Definition
The cash outflow for loan and debt issuance costs. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
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- Definition
The cash outflow to acquire debt and equity securities not classified as either held-to-maturity securities or trading securities which would be classified as available-for-sale securities and reported at fair value, with unrealized gains and losses excluded from earnings and reported in a separate component of shareholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
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- Definition
The cash outflow associated with the acquisition of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale; includes cash outflows to pay for construction of self-constructed assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The cash inflow from a debt initially having maturity due after one year or beyond the operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
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- Definition
The cash inflow from amounts received from issuance of long-term debt that is wholly or partially secured by collateral. Excludes proceeds from tax exempt secured debt. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash inflow from a contractual arrangement with the lender, including letter of credit, standby letter of credit and revolving credit arrangements, under which borrowings can be made up to a specific amount at any point in time with either short term or long term maturity that is collateralized (backed by pledge, mortgage or other lien in the entity's assets). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The cash inflow from a long-term borrowing made from related parties where one party can exercise control or significant influence over another party; including affiliates, owners or officers and their immediate families, pension trusts, and so forth. Alternate caption: Proceeds from Advances from Affiliates. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The net cash inflow or outflow in other borrowings not otherwise defined in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
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- Definition
The net cash inflow or outflow from the proceeds and repayments made on the long-term borrowing from related party where one party can exercise control or significant influence over another party; including affiliates, owners or officers and their immediate families, pension trusts, and such forth. Alternate caption: Proceeds from (Payments for) Advances from Affiliates. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
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- Definition
The net cash inflow or outflow associated with long-term debt that is wholly or partially secured by collateral. Excludes proceeds from and repayments of tax exempt secured debt. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The cash inflow associated with the amount received from holders exercising their stock options. This item inherently excludes any excess tax benefit, which the entity may have realized and reported separately. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The sum of the periodic provision charged to operations, based on an assessment of the uncollectibility of the loan and lease portfolio, the offset to which is either added to or deducted from the allowance account for the purpose of reducing loan receivable and leases to an amount that approximates their net realizable value (the amount expected to be collected). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
|
- Definition
The cash outflow associated with security instruments that either represent a creditor or an ownership relationship with the holder of the investment security with a maturity of beyond one year or normal operating cycle, if longer. Includes repayments of (a) debt, (b) capital lease obligations, (c) mandatory redeemable capital securities, and (d) any combination of (a), (b), or (c). Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash outflow to repay long-term debt that is wholly or partially secured by collateral. Excludes repayments of tax exempt secured debt. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock or unit options, amortization of restricted stock or units, and adjustment for officers' compensation. As noncash, this element is an add back when calculating net cash generated by operating activities using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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(1) Summary of Significant Accounting Policies
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Sep. 30, 2011
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| Significant Accounting Policies [Text Block] |
(1)
Summary
of Significant Accounting Policies
Description
of Business
We
were formed in California on March 8, 1991. We specialize
in purchasing and servicing retail automobile installment
sale contracts (“automobile contracts” or
“finance receivables”) originated by licensed
motor vehicle dealers located throughout the United States
(“dealers”) in the sale of new and used
automobiles, light trucks and passenger vans. Through our
purchases, we provide indirect financing to dealer
customers for borrowers with limited credit histories, low
incomes or past credit problems (“sub-prime
customers”). We serve as an alternative source of
financing for dealers, allowing sales to customers who
otherwise might not be able to obtain financing. In
addition to purchasing installment purchase contracts
directly from dealers, we have also (i) acquired
installment purchase contracts in four merger and
acquisition transactions, (ii) purchased immaterial amounts
of vehicle purchase money loans from non-affiliated
lenders, and (iii) lent money directly to consumers for an
immaterial amount of vehicle purchase money
loans. In this report, we refer to all of such
contracts and loans as "automobile contracts."
Basis
of Presentation
Our
Unaudited Condensed Consolidated Financial Statements have
been prepared in conformity with accounting principles
generally accepted in the United States of America, with
the instructions to Form 10-Q and with Article 8 of
Regulation S-X of the Securities and Exchange Commission,
and include all adjustments that are, in management’s
opinion, necessary for a fair presentation of the results
for the interim periods presented. All such adjustments
are, in the opinion of management, of a normal recurring
nature. In addition, certain items in prior
period financial statements may have been reclassified for
comparability to current period presentation. Results for
the nine-month period ended September 30, 2011 are not
necessarily indicative of the operating results to be
expected for the full year.
Certain
information and footnote disclosures normally included in
financial statements prepared in accordance with accounting
principles generally accepted in the United States of
America have been condensed or omitted from these Unaudited
Condensed Consolidated Financial Statements. These
Unaudited Condensed Consolidated Financial Statements
should be read in conjunction with the Consolidated
Financial Statements and Notes to Consolidated Financial
Statements included in our Annual Report on Form 10-K for
the year ended December 31, 2010.
Use
of Estimates
The
preparation of financial statements in conformity with
accounting principles generally accepted in the
United States of America requires us to make estimates
and assumptions that affect the reported amounts of assets
and liabilities as of the date of the financial statements,
as well as the reported amounts of income and expenses
during the reported periods. Specifically, a number of
estimates were made in connection with determining an
appropriate allowance for finance credit losses, valuing
finance receivables measured at fair value and the related
debt, valuing residual interest in securitizations,
accreting net acquisition fees, amortizing deferred costs,
valuing warrants issued, and recording deferred tax assets
and reserves for uncertain tax positions. These are
material estimates that could be susceptible to changes in
the near term and, accordingly, actual results could differ
from those estimates.
Other
Income
The
following table presents the primary components of Other
Income:
Stock-based
Compensation
We
recognize compensation costs in the financial statements
for all share-based payments based on the grant date fair
value estimated in accordance with the provisions
of ASC 718 “Accounting for Stock Based
Compensation”.
For
the nine months ended September 30, 2011 and 2010, we
recorded stock-based compensation costs in the amount of
$1.3 million and $1.2 million, respectively. As
of September 30, 2011, unrecognized stock-based
compensation costs to be recognized over future periods
equaled $1.9 million. This amount will be recognized as
expense over a weighted-average period of 2.7 years.
The
following represents stock option activity for the nine
months ended September 30, 2011:
At
September 30, 2011, the aggregate intrinsic value of
options outstanding and exercisable was $271,000 and
$131,000, respectively. There were 9,000 shares exercised
for the nine months ended September 30, 2011 compared to
none for the comparable period in 2010. There
were 1.9 million shares available for future stock option
grants under existing plans as of September 30,
2011.
Purchases
of Company Stock
During
the nine-month periods ended September 30, 2011 and 2010,
we purchased 227,298 and 784,262 shares, respectively, of
our common stock, at average prices of $1.18 and $1.55,
respectively.
New
Accounting Pronouncements
In
April 2011, the FASB amended existing guidance for
assisting a creditor in determining whether a restructuring
is a troubled debt restructuring (“TDR”). The
amendments clarify the guidance for a creditor’s
evaluation of whether it has granted a concession and
whether a debtor is experiencing financial difficulties.
This guidance is effective for interim and annual reporting
periods beginning after June 15, 2011, and should be
applied retrospectively to the beginning of the annual
period of adoption. For purposes of measuring impairment on
newly identified troubled debt restructurings, the
amendments should be applied prospectively for the first
interim or annual period beginning on or after June 15,
2011. This amendment did not have a material effect on our
consolidated financial statements.
In
May 2011, the FASB issued an amendment to achieve common
fair value measurement and disclosure requirements between
U.S. and international accounting principles. Overall, the
guidance is consistent with existing U.S. accounting
principles; however, there are some amendments that change
a particular principle or requirement for measuring fair
value or for disclosing information about fair value
measurements. The amendments in this guidance are effective
during interim and annual periods beginning after December
15, 2011. We are currently evaluating the effect of this
amendment on our consolidated financial statements.
In
September 2011, the FASB amended existing guidance and
eliminated the option to present the components of other
comprehensive income as part of the statement of changes in
shareholder’s equity. The amendment requires that
comprehensive income be presented in either a single
continuous statement or as two separate consecutive
statements. The adoption of this amendment will change the
presentation of the components of comprehensive income for
the Company as part of the consolidated statement of
shareholder’s equity. This amendment is effective for
fiscal and interim periods beginning after December 15,
2011.
Reclassifications
Some
items in the prior year financial statements were
reclassified to conform to the current presentation.
Reclassifications had no effect on prior year net income or
total shareholders’ equity.
Uncertainty
of Capital Markets and General Economic Conditions
Historically,
we have depended upon the availability of warehouse credit
facilities and access to long-term financing through the
issuance of asset-backed securities collateralized by our
automobile contracts. Since 1994 through September 30,
2011, we have completed 52 term securitizations of
approximately $6.9 billion in contracts. We conducted four
term securitizations in 2006, four in 2007, two in 2008,
one in 2010 and two to date in 2011. From July 2003 through
April 2008 all of our securitizations were structured as
secured financings. The second of our two
securitization transactions in 2008 (completed in September
2008) and our securitization in September 2010
(a re-securitization of the remaining receivables from the
September 2008 transaction) were each in substance a sale
of the related automobile contracts, and have been treated
as sales for financial accounting purposes. On
September 28, 2011 we completed our 52nd term
securitization.
Since
the fourth quarter of 2007 and through the end of 2009, we
observed unprecedented adverse changes in the market for
securitized pools of automobile contracts. These changes
included reduced liquidity, and reduced demand for
asset-backed securities, particularly for securities
carrying a financial guaranty and for securities backed by
sub-prime automobile receivables. Moreover, many of the
firms that previously provided financial guarantees, which
were an integral part of our securitizations, suspended
offering such guarantees. The adverse changes
that took place in the market from the fourth quarter of
2007 through the end of 2009 caused us to conserve
liquidity by significantly reducing our purchases of
automobile contracts. However, since October 2009, we have
gradually increased our contract purchases. To do so, we
have used a $50 million credit facility that we established
in September 2009, another $50 million term funding
facility that we established in March 2010, and credit
facilities established thereafter. In September
2010 we took advantage of improvement in the market for
asset-backed securities by re-securitizing the remaining
underlying receivables from our unrated September 2008
securitization. By doing so we were able to pay
off the bonds associated with the September 2008
transaction and issue rated bonds with a significantly
lower weighted average coupon. The September
2010 transaction was our first rated term securitization
since 1993 that did not utilize a financial
guaranty. More recently, we increased our
short-term funding capacity by $200 million with the
establishment of a new $100 million credit facility in
December 2010 and an additional $100 million credit
facility in February 2011. We have completed two
on balance sheet securitizations to date in
2011: (i) one in April 2011 consisting of $104.5
million of receivables purchased primarily in 2010 and
2011; and (ii) one in September 2011 consisting of $111.0
million of newly purchased receivables. In
addition, in June 2011 we restructured the March 2010 term
funding facility to get the senior notes rated and issued
$9.8 million in three tranches of new subordinated
notes. Although we have seen improvements in the
capital markets in 2010
and
2011 as compared to 2008 and 2009, if the trend of
improvement in the markets for asset-backed securities
should reverse, or if we should be unable to obtain
additional contract financing facilities or to complete a
term securitization of our recently originated receivables,
we might curtail or cease our purchases of new automobile
contracts, which could lead to a material adverse effect on
our operations.
Rescission
Liability
From
May 2005 to July 2010, we conducted a continuous public
offering of subordinated notes, pursuant to a registration
statement that was declared effective by the SEC in May
2005. In July 2010, we learned that, pursuant to a rule of
the SEC, we were no longer permitted to offer and sell our
subordinated notes in reliance upon that registration
statement. Consequently, certain investors who purchased or
renewed such subordinated notes prior to the effectiveness
of the new registration statement for such subordinated
notes on December 13, 2010 may have a statutory right to
rescind their purchase or renewal for a period of up to
twelve months from the date of their purchase or renewal.
As a result, we may have rescission liability and could be
required to repurchase some or all of such subordinated
notes at the original sales price plus statutory interest,
less the amount of any income received by the purchasers.
As of September 30, 2011, there were approximately $885,000
of such subordinated notes (excluding any subordinated
notes subsequently repaid) purchased or renewed after
September 30, 2010, but before December 13, 2010, for which
we may have rescission liability.
Derivative
Financial Instruments
We
do not use derivative financial instruments to hedge
exposures to cash-flow or market risks. However, from 2008
to 2010, we issued warrants to purchase the Company’s
common stock in conjunction with various debt financing
transactions. Certain of these warrants issued contain
"down round" or reset features that are subject to
classification as liabilities for financial statement
purposes. These liabilities are measured at fair value,
with the changes in fair value at the end of each
period reflected as current period income or loss.
Accordingly, changes to the market price per share of our
common stock underlying these warrants with "down
round" or price reset features directly affect the
fair value computations for these derivative financial
instruments. The effect is that any increase in the market
price per share of our common stock also increases the
related liability, which in turn would result in a current
period loss. Conversely, any decrease in the market price
per share of our common stock also decreases the related
liability, which in turn would result in a current period
gain. We use a binomial pricing model to compute the fair
value of the liabilities associated with the outstanding
warrants. In computing the fair value of the warrant
liabilities at the end of each period, we use significant
judgments with respect to the risk free interest rate, the
volatility of our stock price, and the estimated life of
the warrants. The effects of these judgments, if proven
incorrect, could have a significant effect on our financial
statements. The
warrant liabilities are included in Accounts payable and
accrued expenses on our consolidated balance
sheets.
Financial
Covenants
Certain
of our securitization transactions and our warehouse credit
facility contain various financial covenants requiring
minimum financial ratios and results. Such covenants
include maintaining minimum levels of liquidity and net
worth and not exceeding maximum leverage levels and maximum
financial losses. In addition, certain securitization and
non-securitization related debt agreements contain
cross-default provisions that would allow certain creditors
to declare a default if a default occurred under a
different facility.
The
agreements under which we receive periodic fees for
servicing automobile contracts in securitizations are
terminable by the respective financial guaranty insurance
companies (also referred to as note insurers) upon defined
events of default, and, in some cases, at the will of the
insurance company. In August 2010, we agreed
with the note insurer for four of our 12 currently
outstanding securitizations to amend the applicable
agreements to remove the financial covenants that were
contained in three of the related agreements. In
return for such amendments, we agreed to increase the
required credit enhancement amounts in those three deals
through increased spread account
requirements. The remaining transaction insured
by this particular note insurer does not contain financial
covenants.
For
the remaining four securitizations insured by different
parties we have been receiving waivers for certain
financial and operating covenants on a monthly or quarterly
basis as summarized below:
The
adjusted net worth covenants are covenants to maintain
minimum levels of adjusted net worth, defined as our
consolidated book value under GAAP with the exclusion of
intangible assets such as goodwill. There are two
separate adjusted net worth covenants because there are
two separate note insurers that have this covenant in
their related securitization agreements. The leverage
covenant requires that we not exceed the specified ratio
of debt over the defined adjusted net worth. Debt is
defined in this covenant to mean consolidated liabilities
less warehouse lines of credit and securitization trust
debt; using this definition at September 30, 2011, we had
debt of $123.9 million.
Without
the waivers we have received from the related note
insurers, we would have been in violation of covenants
relating to minimum net worth and maximum leverage levels
with respect to four of our 12 currently outstanding
securitization transactions. Upon such an event
of default, and subject to the right of the related note
insurers to waive such terms, the agreements governing the
securitizations call for payment of a default insurance
premium, ranging from 25 to 100 basis points per annum on
the aggregate outstanding balance of the related insured
senior notes, and for the diversion of all excess cash
generated by the assets of the respective securitization
pools into the related spread accounts to increase the
credit enhancement associated with those transactions. The
cash so diverted into the spread accounts would otherwise
be used to make principal payments on the subordinated
notes in each related securitization or would be released
to us. To the extent that principal payments on the
subordinated notes are delayed, we will incur greater
interest expense on the subordinated notes than we would
have without the required increase to the related spread
accounts. As of the date of this report, cash is
being diverted to the related spread accounts in four
transactions. In addition, upon an event of
default, the note insurers have the right to terminate us
as servicer. Although our termination as
servicer has been waived, we are paying default premiums,
or their equivalent, with respect to insured notes
representing $192.4 million of the $543.2 million of
securitization trust debt outstanding at September 30,
2011. It should be noted that the principal amount of such
securitization trust debt is not increased, but that the
increased insurance premium is reflected as increased
interest expense. Furthermore, such waivers are
temporary, and there can be no assurance as to their future
extension. It is our opinion, however, that we will obtain
such future extensions of our servicing agreements because
it is generally not in the interest of any party to the
securitization transaction to transfer
servicing. We believe that the note insurers
recognize that diligent telephonic contact and continuity
of the relationship between the servicer and the obligor
are critical and that a transfer of servicing to a third
party servicer could cause interruptions in the collection
effort that would result in substantially greater losses
than would have occurred without the
transfer. In addition, it is generally
acknowledged that third party servicers typically do not
have as much incentive to maximize portfolio performance as
does the entity that holds the credit risk of the
receivables. Nevertheless, there can be no
assurance that our opinions and beliefs are
correct. Were an insurance company in the future
to exercise its option to terminate such agreements or to
pursue other remedies, such remedies could have a material
adverse effect on our liquidity and results of operations,
depending on the number and value of the affected
transactions. Our note insurers continue to extend our term
as servicer on a monthly or quarterly basis, pursuant to
the servicing agreements.
Correction
of Immaterial Error
In
the first quarter of 2011, we revised our consolidated
financial statements for the years ended December 31, 2009
and 2010, including the quarters therein, due to
corrections of immaterial prior years’ errors
identified in
the
current year. We understated derivative liabilities and
mis-stated interest expense for 2009 and 2010, primarily
related to the accounting treatment of derivative
liabilities associated with certain warrants we issued in
conjunction with various debt financing
transactions. The warrants involved are those
referenced above as having reset features. The result of
the correction included a decrease of previously reported
net loss by $649,000 for the year ended December 31, 2010,
a decrease in the previously reported net loss by $1.1
million for the nine months ended September 30, 2010 and a
decrease of previously reported net loss of $1.1 million
for the three months ended September 30, 2010. Basic and
diluted loss per common share decreased by $0.04 per share
from previously reported amounts as of the December 31,
2010 and decreased by $0.06 per share for the three and
nine months ended September 30, 2010,
respectively. Net shareholders’ equity
decreased by $1.6 million and $2.1 million, respectively
compared to the amounts previously reported as of September
30, 2010 and December 31, 2010.
Finance
Receivables and Related Debt Measured at Fair Value
In
September 2011 we purchased approximately $217.8 million of
finance receivables from Fireside Bank. These receivables,
and debt incurred secured by these receivables, are
recorded on our balance sheet at fair
value. There are no level 1 or level 2 inputs
(as described by ASC 820) available to us for measurement
of such receivables, or for the related
debt. Our level 3, unobservable inputs
reflect our own assumptions about the factors that market
participants use in pricing similar receivables and debt,
and are based on the best information available in the
circumstances. The valuation method used to estimate fair
value may produce a fair value measurement that may not be
indicative of ultimate realizable value. Furthermore, while
we believe our valuation methods are appropriate and
consistent with those used by other market participants,
the use of different methods or assumptions to estimate the
fair value of certain financial instruments could result in
different estimates of fair value. Those
estimated values may differ significantly from the values
that would have been used had a readily available market
for such receivables or debt existed, or had such
receivables or debt been liquidated, and those differences
could be material to the financial statements.
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- Definition
The entire disclosure for all significant accounting policies of the reporting entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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(2) Finance Receivables
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| Finance, Loan and Lease Receivables, Held-for-investment, Policy [Policy Text Block] |
(2)
Finance
Receivables
Our
portfolio of finance receivables consists of small-balance
homogeneous contracts comprising a single segment and class
that is collectively evaluated for impairment on a
portfolio basis according to delinquency status. Our
contract purchase guidelines are designed to produce a
homogenous portfolio. For key terms such as interest rate,
length of contract, monthly payment and amount financed,
there is relatively little variation from the average for
the portfolio. We report delinquency on a
contractual basis. Once a Contract becomes greater than 90
days delinquent, we do not recognize additional interest
income until the obligor under the Contract makes
sufficient payments to be less than 90 days
delinquent. Any payments received on a Contract that is
greater than 90 days delinquent are first applied to
accrued interest and then to principal reduction.
The
following table presents the components of Finance
Receivables, net of unearned interest:
We
consider an automobile contract delinquent when an obligor
fails to make at least 90% of a contractually due payment
by the following due date, which date may have been
extended within limits specified in the servicing
agreements. The period of delinquency is based on the
number of days payments are contractually past due.
Automobile contracts less than 31 days delinquent are not
included. The period of delinquency is based on
the number of days a payment is past its due date, as
extended where applicable. In certain
circumstances we will grant obligors one-month payment
extensions to assist them with temporary cash flow
problems. We consider such extensions to be
insignificant delays in payments rather than troubled
debt
restructurings. The
only modification of terms is to advance the
obligor’s next due date by one month and extend the
maturity date of the receivable by one month. In
some cases, a two-month extension may be
granted. There are no other concessions such as
a reduction in interest rate, forgiveness of principal or
of accrued interest. Accordingly, we consider
such extensions to be insignificant delays in payments
rather than troubled debt restructurings. The
following table summarizes the delinquency status of
finance receivables as of September 30, 2011 and December
31, 2010:
Finance
receivables totaling $9.7 million and $13.3 million at
September 30, 2011 and December 31, 2010, respectively,
including all receivables greater than 90 days delinquent
have been placed on non-accrual status as a result of their
delinquency status.
We
use a loss allowance methodology commonly referred to as
"static
pooling,"
which stratifies our finance receivable portfolio into
separately identified pools based on the period of
origination. Using analytical and formula driven
techniques, we estimate an allowance for finance credit
losses, which we believe is adequate for probable credit
losses that can be reasonably estimated in our portfolio of
automobile contracts. The estimate for probable credit
losses is reduced by our estimate for future recoveries on
previously incurred losses. Provision for losses
is charged to our consolidated statement of operations. Net
losses incurred on finance receivables are charged to the
allowance. For finance receivables originated through
December 31, 2010 we established the allowance at the time
of the acquisition of the receivable. Beginning
January 1, 2011, we establish the allowance for new
receivables over the twelve-month period following their
acquisition. The following table presents a summary of the
activity for the allowance for credit losses for the three
month and nine-month periods ended September 30, 2011 and
2010:
Excluded
from finance receivables are contracts that were previously
classified as finance receivables but were reclassified as
other assets because we have repossessed the vehicle
securing the Contract. The following table
presents a summary of such repossessed inventory together
with the allowance for losses in repossessed inventory that
is not included in the allowance for credit losses:
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- Definition
Disclosure of accounting policy for those finance, loan and lease receivables classified as held for investment. This disclosure may include (1) the basis at which such receivables are carried in the entity's statements of financial position (2) how the level of the allowance for loan and lease losses is determined (3) when impairments, charge-offs or recoveries are recognized for such receivables (4) the treatment of commitment and other fees and loan origination costs (including, if applicable, how the entity accounts for fees and costs associated with credit cards that are either purchased or originated) (5) the treatment of any premiums or discounts or unearned income (6) the entity's income recognition policies for such receivables, including those that are impaired, past due or placed on nonaccrual status (for impaired loans, the policy for recognizing interest income on such loans, including how cash receipts are recorded) and (7) the treatment of foreclosures or repossessions. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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(3) Finance Receivables Measured at Fair Value
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| Fair Value of Financial Instruments, Policy [Policy Text Block] |
(3)
Finance
Receivables Measured at Fair Value
In
September 2011 we purchased approximately $217.8 million of
finance receivables from Fireside Bank. These receivables
are recorded on our balance sheet at fair value.
The
following table presents the components of Finance
Receivables measured at fair value:
The
following table summarizes the delinquency status of
finance receivables measured at fair value as of September
30, 2011 and December 31, 2010 (we held no such receivables
at December 31, 2010):
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- Definition
Disclosure of accounting policy for determining the fair value of financial instruments. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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(4) Securitization Trust Debt
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| Debt Disclosure [Text Block] | (4)
Securitization
Trust Debt
We
have completed a number of securitization transactions that
are structured as secured borrowings for financial
accounting purposes. The debt issued in these transactions
is shown on our Unaudited Condensed Consolidated Balance
Sheets as “Securitization trust debt,” and the
components of such debt are summarized in the following
table:
_________________
All
of the securitization trust debt was sold in private
placement transactions to qualified institutional buyers.
The debt was issued through our wholly-owned bankruptcy
remote subsidiaries and is secured by the assets of such
subsidiaries, but not by our other assets. Principal of
$208.1 million, and the related interest payments, are
guaranteed by financial guaranty insurance policies issued
by third party financial institutions.
The
terms of the various securitization agreements related to
the issuance of the securitization trust debt and the
warehouse credit facilities require that we meet certain
delinquency and credit loss criteria with respect to the
collateral pool, and require that we maintain minimum
levels of liquidity and net worth and not exceed maximum
leverage levels and maximum financial losses. In
addition, certain securitization and non-securitization
related debt contain cross-default provisions, which would
allow certain creditors to declare a default if a default
were declared under a different facility. We
have received waivers regarding the potential breach of
certain such covenants relating to minimum net worth and
maximum leverage levels.
We
are responsible for the administration and collection of
the automobile contracts. The securitization agreements
also require certain funds be held in restricted cash
accounts to provide additional collateral for the
borrowings or to be applied to make payments on the
securitization trust debt. As of September 30, 2011,
restricted cash under the various agreements totaled
approximately $128.9 million. Interest expense on
the
securitization
trust debt consists of the stated rate of interest plus
amortization of additional costs of borrowing. Additional
costs of borrowing include facility fees, insurance and
amortization of deferred financing costs and discounts on
notes sold. Deferred financing costs and discounts on notes
sold related to the securitization trust debt are amortized
using a level yield method. Accordingly, the effective cost
of the securitization trust debt is greater than the
contractual rate of interest disclosed above.
Our
wholly-owned bankruptcy remote subsidiaries were formed to
facilitate the above asset-backed financing transactions.
Similar bankruptcy remote subsidiaries issue the debt
outstanding under our warehouse line of credit. Bankruptcy
remote refers to a legal structure in which it is expected
that the applicable entity would not be included in any
bankruptcy filing by its parent or affiliates. All of the
assets of these subsidiaries have been pledged as
collateral for the related debt. All such transactions,
treated as secured financings for accounting and tax
purposes, are treated as sales for all other purposes,
including legal and bankruptcy purposes. None of the assets
of these subsidiaries are available to pay other creditors
of ours.
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- Definition
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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(5) Interest Income
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| Interest and Other Income [Text Block] |
(5)
Interest
Income
The
following table presents the components of interest
income:
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- Definition
The entire disclosure for interest and other income. No definition available.
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(6) Earnings (Loss) Per Share
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| Earnings Per Share [Text Block] |
(6)
Earnings
(Loss) Per Share
Earnings
(loss) per share for the three-month and nine-month periods
ended September 30, 2011 and 2010 were calculated using the
weighted average number of shares outstanding for the
related period. The following table reconciles the number
of shares used in the computations of basic and diluted
earnings (loss) per share for the three-month and
nine-month periods ended September 30, 2011 and
2010:
If
the anti-dilutive effects of common stock equivalents were
considered, shares included in the diluted earnings (loss)
per share calculation for the three-month and nine-month
periods ended September 30, 2011 would have included an
additional 2.8 million and 3.0 million shares,
respectively, attributable to the exercise of outstanding
options and warrants. For the three-month and nine-month
periods ended
September
30, 2010, there were 2.8 million and 3.3 million shares,
respectively, attributable to the exercise of outstanding
options and warrants.
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- Definition
The entire disclosure for earnings per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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(7) Income Taxes
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Sep. 30, 2011
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| Income Tax Disclosure [Text Block] |
(7)
Income
Taxes
We
file numerous consolidated and separate income tax returns
with the United States and with many states. With few
exceptions, we are no longer subject to United States
federal income tax examinations for years before 2006 and
are no longer subject to state and local income tax
examinations by tax authorities for years before
2003.
We
have subsidiaries in various states that are currently
under audit for years ranging from 2003 through 2006. To
date, no material adjustments have been proposed as a
result of these audits.
We
do not anticipate that total unrecognized tax benefits will
significantly change due to any settlements of audits or
expirations of statutes of limitations over the next twelve
months.
The
Company and its subsidiaries file a consolidated federal
income tax return and combined or stand-alone state
franchise tax returns for certain states. We utilize the
asset and liability method of accounting for income taxes,
under which deferred income taxes are recognized for the
future tax consequences attributable to the differences
between the financial statement values of existing assets
and liabilities and their respective tax bases. Deferred
tax assets and liabilities are measured using enacted tax
rates expected to apply to taxable income in the years in
which those temporary differences are expected to be
recovered or settled. The effect on deferred taxes of a
change in tax rates is recognized in income in the period
that includes the enactment date. We have estimated a
valuation allowance against that portion of the deferred
tax asset whose utilization in future periods is not more
than likely. Our
net deferred tax asset of $15.0 million as of September 30,
2011 is net of a valuation allowance of $61.4
million.
On
a quarterly basis, we determine whether a valuation
allowance is necessary for our deferred tax asset. In
performing this analysis, we consider all evidence
currently available, both positive and negative, in
determining whether, based on the weight of that evidence,
the deferred tax asset will be realized. We establish a
valuation allowance when it is more likely than not that a
recorded tax benefit will not be realized. The expense to
create the valuation allowance is recorded as additional
income tax expense in the period the valuation allowance is
established. During the first nine months of 2011, we
increased our valuation allowance by $4.8 million, which
was offset by the increase in our gross deferred tax
assets, resulting in no change to the our deferred tax
assets and no income tax expense for the period.
In
determining the possible future realization of deferred tax
assets, we have considered the taxes paid in the current
and prior years that may be available to recapture, as well
as future taxable income from the following sources: (a)
reversal of taxable temporary differences; and (b) tax
planning strategies that, if necessary, would be
implemented to accelerate taxable income into years in
which net operating losses might otherwise expire. Our tax
planning strategies include the prospective sale of certain
assets such as finance receivables, residual interests in
securitized finance receivables, charged off receivables
and base servicing rights. The expected proceeds
for such asset sales have been estimated based on our
expectation of what buyers of the assets would consider to
be reasonable assumptions for net cash flows and required
rates of return for each of the various asset
types. Our estimates for net cash flows and
required rates of return are subjective and inherently
subject to future events that may significantly affect
actual net proceeds we may receive from executing our tax
planning strategies.
We
believe such asset sales can produce at least $37.5 million
in taxable income within the relevant carryforward period.
Such strategies could be implemented without significant
effect on our core business or our ability to generate
future growth. The costs related to the implementation of
these tax strategies were considered in evaluating the
amount of taxable income that could be generated in order
to realize our deferred tax assets.
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- Definition
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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(8) Legal Proceedings
|
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| Legal Matters and Contingencies [Text Block] |
(8)
Legal
Proceedings
Stanwich
Litigation. We were for some time a defendant in a
class action (the “Stanwich Case”) brought in
the California Superior Court, Los Angeles County. The
original plaintiffs in that case were persons entitled to
receive regular payments (the “Settlement
Payments”) under out-of-court settlements reached
with third party defendants. Stanwich Financial Services
Corp. (“Stanwich”), then an affiliate of our
former chairman of the board of directors, is the entity
that was obligated to pay the Settlement Payments. Stanwich
had defaulted on its payment obligations to the plaintiffs
and in September 2001 filed for reorganization under the
Bankruptcy Code, in the federal Bankruptcy Court of
Connecticut. By February 2005, we had settled
all claims brought against us in the Stanwich Case.
In
November 2001, one of the defendants in the Stanwich Case,
Jonathan Pardee, asserted claims for indemnity against us
in a separate action, which is now pending in federal
district court in Rhode Island. We have filed counterclaims
in the Rhode Island federal court against Mr. Pardee, and
have filed a separate action against Mr. Pardee's Rhode
Island attorneys, in the same court. As of December 31,
2010, these actions in the court in Rhode Island had been
stayed, awaiting resolution of an adversary action brought
against Mr. Pardee in the bankruptcy court, which is
hearing the bankruptcy of Stanwich.
On
April 6, 2011, that adversary action was dismissed,
pursuant to an agreement between us and the representative
of creditors in the Stanwich bankruptcy. Under
that agreement, CPS has paid the bankruptcy estate $800,000
and abandoned its claims against the estate, and the estate
has abandoned its adversary action against Mr.
Pardee. The entire payment in this matter was
included in our legal contingency liability as of December
31, 2010. With the dismissal of the adversary
action, all known claims asserted against Mr. Pardee have
been resolved, without his incurring any
liability. Accordingly, we believe that this
resolution of the adversary action will result in
limitation of our exposure to Mr. Pardee to no more
than some portion of his attorneys fees
incurred. The stay in the action against us in
Rhode Island has been lifted, and a trial is scheduled for
November 2012.
The
reader should consider that any adverse judgment against us
in this case for indemnification, in an amount materially
in excess of any liability already recorded in respect
thereof, could have a material adverse effect on our
financial position. There can be no assurance as
to the ultimate outcome of this matter.
Other
Litigation.
We
are routinely involved in various legal proceedings
resulting from our consumer finance activities and
practices, both continuing and discontinued. We believe
that there are substantive legal defenses to such claims,
and intend to defend them vigorously. There can be no
assurance, however, as to the outcome.
We
have recorded a liability as of September 30, 2011 that we
believe represents an appropriate allowance for legal
contingencies, including those described above. Any adverse
judgment against us, if in an amount materially in excess
of the recorded liability, could have a material adverse
effect on our financial position.
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- Definition
The entire disclosure for legal proceedings, legal contingencies, litigation, regulatory and environmental matters and other contingencies. No definition available.
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(9) Employee Benefits
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| Compensation and Employee Benefit Plans [Text Block] |
(9)
Employee
Benefits
On
March 8, 2002 we acquired MFN Financial Corporation and its
subsidiaries in a merger. We sponsor the MFN
Financial Corporation Benefit Plan (the
“Plan”). Plan benefits were frozen June 30,
2001. The table below sets forth the Plan’s net
periodic benefit cost for the three-month and nine-month
periods ended September 30, 2011 and 2010.
We
contributed $529,000 to the Plan during the nine-month
period ended September 30, 2011 and we anticipate making
contributions in the amount of $137,000 for the remainder
of 2011.
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- Definition
The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. No definition available.
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| Fair Value Disclosures [Text Block] |
(10)
Fair Value Measurements
In
September 2006, the FASB issued ASC 820, "Fair Value
Measurements" which clarifies the principle that
fair value should be based on the assumptions market
participants would use when pricing an asset or liability
and establishes a fair value hierarchy that prioritizes the
information used to develop those assumptions. Under the
standard, fair value measurements would be separately
disclosed by level within the fair value hierarchy.
ASC
820 defines fair value, establishes a framework for
measuring fair value, establishes a three-level valuation
hierarchy for disclosure of fair value measurement and
enhances disclosure requirements for fair value
measurements. The three levels are defined as follows:
level 1 - inputs to the valuation methodology are quoted
prices (unadjusted) for identical assets or liabilities in
active markets; level 2 – inputs to the valuation
methodology include quoted prices for similar assets and
liabilities in active markets, and inputs that are
observable for the asset or liability, either directly or
indirectly, for substantially the full term of the
financial instrument; and level 3 – inputs to the
valuation methodology are unobservable and significant to
the fair value measurement.
Certain
warrants issued between 2008 and 2010 in conjunction with
various debt financing transactions contain features that
make them subject to derivative accounting. We valued these
warrants using a binomial valuation model using a weighted
average volatility assumption of 41%, weighted average term
of 8 years and a risk free rate of 3.3%. We estimated the
value of these warrants to be $1.2 million, which is
classified as a liability on our consolidated balance sheet
as of September 30, 2011.
In
September 2008 we sold automobile contracts in a
securitization that was structured as a sale for financial
accounting purposes. In that sale, we retained
both securities and a residual interest in the transaction
that are measured at fair value. We describe
below the valuation methodologies we use for the securities
retained and the residual interest in the cash flows of the
transaction, as well as the general classification of such
instruments pursuant to the valuation
hierarchy. The securities retained were sold in
September 2010 in the re-securitization transaction
described in Note 1. In the same transaction, the residual
interest was reduced by $1.5 million. The
residual interest in such securitization is $4.2 million as
of September 30, 2011 and is classified as level 3 in the
three-level valuation hierarchy. We determine the value of
that residual interest using a discounted cash flow model
that includes estimates for prepayments and
losses. We use a discount rate of 20% per annum
and a cumulative net loss rate of 13%. The assumptions we
use are based on historical
performance
of automobile contracts we have originated and serviced in
the past, adjusted for current market conditions. No gain
or loss was recorded as a result of the re-securitization
transaction described above.
Repossessed
vehicle inventory, which is included in Other Assets on our
balance sheet, is measured at fair value using Level 2
assumptions based on our actual loss experience on sale of
repossessed vehicles. At September 30, 2011, the finance
receivables related to the repossessed vehicles in
inventory totaled $9.4 million. We have applied a valuation
adjustment of $4.9 million, resulting in an estimated fair
value and carrying amount of $4.5 million.
We
have no Level 3 assets that are measured at fair value on a
nonrecurring basis. The table below presents a
reconciliation for Level 3 assets measured at fair value on
a recurring basis using significant unobservable
inputs:
In
September 2011, we acquired $217.8 million of finance
receivables from Fireside Bank for a purchase price of
$201.3 million. The receivables were acquired by
our wholly-owned special purpose subsidiary, CPS Fender
Receivables, LLC, which issued a note for $197.3 million,
with a fair value of $196.5 million. Since the
Fireside receivables were originated by another entity with
its own underwriting guidelines and procedures, we have
elected to account for the Fireside receivables and the
related debt secured by those receivables at their
estimated fair values so that changes in fair value will be
reflected in our results of operations as they
occur. Interest income from the receivables and
interest expense on the note are included in interest
income and interest expense,
respectively. Changes to the fair value of the
receivables and debt are also to be included in interest
income and interest expense, respectively. Our
level 3, unobservable inputs reflect the our own
assumptions about the factors that market participants use
in pricing similar receivables and debt, and are based on
the best information available in the circumstances. They
include such inputs as estimated net charge-offs and timing
of the amortization of the portfolio of finance
receivables. The table below presents a
reconciliation of the acquired finance receivables and
related debt measured at fair value on a recurring basis
using significant unobservable inputs:
The
table below compares the fair values of the Fireside
receivables and the related secured debt to their
contractual balances for the periods shown:
The
following summary presents a description of the
methodologies and assumptions used to estimate the fair
value of our financial instruments. Much of the information
used to determine fair value is highly subjective. When
applicable, readily available market information has been
utilized. However, for a significant portion of our
financial instruments, active markets do not exist.
Therefore, significant elements of judgment were required
in estimating fair value for certain items. The subjective
factors include, among other things, the estimated timing
and amount of cash flows, risk characteristics, credit
quality and interest rates, all of which are subject to
change. Since the fair value is estimated as of September
30, 2011 and December 31, 2010, the amounts that will
actually be realized or paid at settlement or maturity of
the instruments could be significantly different. The
estimated fair values of financial assets and liabilities
at September 30, 2011 and December 31, 2010, were as
follows:
Cash,
Cash Equivalents and Restricted Cash
The
carrying value equals fair value.
Finance
Receivables, net
The
fair value of finance receivables is estimated by
discounting future cash flows expected to be collected
using current rates at which similar receivables could be
originated.
Fair
Value Receivables and Receivable Financing Debt at Fair
Value
The
carrying value equals fair value.
Accrued
Interest Receivable and Payable
The
carrying value approximates fair value because the related
interest rates are estimated to reflect current market
conditions for similar types of instruments.
Warehouse
Lines of Credit, Residual Interest Financing, and Senior
Secured Debt and Subordinated Renewable Notes
The
carrying value approximates fair value because the related
interest rates are estimated to reflect current market
conditions for similar types of secured instruments.
Securitization
Trust Debt
The
fair value is estimated by discounting future cash flows
using interest rates that we believe reflects the current
market rates.
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- 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. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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