|
Document And Entity Information (USD $)
|
12 Months Ended | ||
|---|---|---|---|
|
Dec. 31, 2011
|
Feb. 28, 2012
|
Jun. 30, 2011
|
|
| Document and Entity Information [Abstract] | |||
| Entity Registrant Name | CONSUMER PORTFOLIO SERVICES INC | ||
| Document Type | 10-K | ||
| Current Fiscal Year End Date | --12-31 | ||
| Entity Common Stock, Shares Outstanding | 19,380,097 | ||
| 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 | Dec. 31, 2011 | ||
| Document Fiscal Year Focus | 2011 | ||
| Document Fiscal Period Focus | FY |
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
If the value is true, then the document as an amendment to previously-filed/accepted document. No definition available.
|
| X | ||||||||||
|
- Definition
End date of current fiscal year in the format --MM-DD. No definition available.
|
| X | ||||||||||
|
- 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.
|
| X | ||||||||||
|
- 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.
|
| X | ||||||||||
|
- 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.
|
| X | ||||||||||
|
- 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.
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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.
|
| X | ||||||||||
|
- 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.
|
| X | ||||||||||
|
- 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.
|
| X | ||||||||||
|
- 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.
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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.
|
| X | ||||||||||
|
- 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.
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- Definition
The amount owed to the reporting entity by counterparties in securitized loan transactions. No definition available.
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- Details
|
| 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 | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- Definition
A valuation allowance for financing receivables that are expected to be uncollectible. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- Definition
The amount for notes payable (written promise to pay), due to related parties. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- Definition
Secured financing other than securities sold under agreements to repurchase and securities loaned. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- Definition
The cumulative amount of the reporting entity's undistributed earnings or deficit. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- Definition
Carrying value as of the balance sheet date of other collateralized debt obligations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
|
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|---|---|---|
| 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 | 19,526,968 | 18,122,810 |
| Common stock shares outstanding | 19,526,968 | 18,122,810 |
|
Series A Preferred Stock [Member]
|
||
| 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 |
|
Series B Preferred Stock [Member]
|
||
| Preferred Stock par value (in Dollars per share) | $ 1 | $ 1 |
| Preferred Stock shares authorized | 1,870 | 1,870 |
| Preferred Stock shares issued | 0 | 1,870 |
| Series B convertible preferred stock shares outstanding | 0 | 1,870 |
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Share data, unless otherwise specified |
12 Months Ended | |
|---|---|---|
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
| Interest income | $ 127,856 | $ 137,090 |
| Servicing fees | 4,348 | 7,657 |
| Other income | 10,927 | 10,438 |
| 143,131 | 155,185 | |
| Employee costs | 32,270 | 33,814 |
| General and administrative | 14,590 | 18,526 |
| Interest | 83,054 | 81,577 |
| Provision for credit losses | 15,508 | 29,921 |
| Marketing | 8,491 | 3,826 |
| Occupancy | 3,006 | 3,067 |
| Depreciation and amortization | 672 | 649 |
| 157,591 | 171,380 | |
| Loss before income tax expense | (14,460) | (16,195) |
| Income tax expense | 16,982 | |
| Net loss | $ (14,460) | $ (33,177) |
| Loss per share: | ||
| Basic (in Dollars per share) | $ (0.76) | $ (1.90) |
| Diluted (in Dollars per share) | $ (0.76) | $ (1.90) |
| Number of shares used in computing loss per share: | ||
| Basic (in Shares) | 19,013 | 17,477 |
| Diluted (in Shares) | 19,013 | 17,477 |
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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 | ||||||||||
|
- 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
|
| X | ||||||||||
|
- Definition
Generally recurring costs associated with normal operations except for the portion of these expenses which can be clearly related to production and included in cost of sales or services. Excludes Selling, General and Administrative Expense. No definition available.
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- Definition
The aggregate total amount of expenses directly related to the marketing or selling of products or services. No definition available.
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(LOSS) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | |
|---|---|---|
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
| Net loss | $ (14,460) | $ (33,177) |
| Other comprehensive income (loss); change in funded status of pension plan, net of $0 and $172 in tax for 2011 and 2010, respectively | (3,181) | 282 |
| Comprehensive loss | $ (17,641) | $ (32,895) |
| X | ||||||||||
|
- Definition
The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- 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 | ||||||||||
|
- Definition
The accumulated change in the value of either the projected benefit obligation or the plan assets resulting from experience different from that assumed or from a change in an actuarial assumption that has not been recognized in net periodic benefit cost, after tax. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(LOSS) (Parentheticals) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | |
|---|---|---|
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
| Change of funded status of pension plan tax effect | $ 0 | $ 172 |
| X | ||||||||||
|
- Definition
Tax effects of the increase (decrease) to accumulated comprehensive income during the period related to benefit plans. While for technical reasons this element has no balance attribute, the default assumption is a credit balance consistent with its label. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Common stock issued upon issuance of debt No definition available.
|
| X | ||||||||||
|
- Definition
Common stock issued upon issuance of debt No definition available.
|
| X | ||||||||||
|
- Definition
Preferred stock issued upon issuance of debt No definition available.
|
| X | ||||||||||
|
- Definition
Preferred stock issued upon issuance of debt No definition available.
|
| X | ||||||||||
|
- Definition
Value of convertible preferred stock that was converted to other securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Number of shares issued for each share of convertible preferred stock that is converted. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- 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 | ||||||||||
|
- Definition
Amounts recognized in other comprehensive income (but not yet recognized in net periodic benefit cost), including the net gain (loss) and net prior service cost (credit) arising during the period. Also includes reclassification adjustments out of other comprehensive income as a result of being recognized as components of net periodic benefit cost for the period. While for technical reasons this element has no balance attribute, the default assumption is a credit balance consistent with its label. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Number of shares of stock issued as of the balance sheet date, including shares that had been issued and were previously outstanding but which are now held in the treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- Definition
Number of shares issued during the period as a result of the conversion of convertible securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The gross value of stock issued during the period upon the conversion of convertible securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Value of stock (or other type of equity) issued during the period as a result of any equity-based compensation plan other than an employee stock ownership plan (ESOP), net of stock value of such awards forfeited. Stock issued could result from the issuance of restricted stock, the exercise of stock options, stock issued under employee stock purchase plans, and/or other employee benefit plans. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Number of shares that have been repurchased during the period and have not been retired and are not held in treasury. Some state laws may govern the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Equity impact of the value of stock that has been repurchased during the period and has not been retired and is not held in treasury. Some state laws may mandate the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Total of allowances and reserves, the valuation and qualifying accounts that are either netted against the cost of an asset (in order to value it at its carrying value) or that reflect a liability established to represent expected future costs, charged to accounts other than costs and expenses in a given period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
Common stock issued in connection with new senior secured debt, related party No definition available.
|
| X | ||||||||||
|
- Definition
Mark to fair value on debt secured by receivables at fair value No definition available.
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
Preferred stock issued in connection with new senior secured debt, related party No definition available.
|
| X | ||||||||||
|
- Definition
The sum of the periodic adjustments of the differences between securities' face values and purchase prices that are charged against earnings. This is called accretion if the security was purchased at a discount and amortization if it was purchased at premium. As a noncash item, this element is an adjustment to net income when calculating cash provided by or used in operations using the indirect method. 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 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 | ||||||||||
|
- 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
The net increase or decrease in fair value as a result of changes in the assumptions or model used to calculate the fair value of servicing assets. 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 | ||||||||||
|
- 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 | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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 | ||||||||||
|
- Definition
The increase (decrease) during the reporting period in the account that represents the temporary difference that results from Income or Loss that is recognized for accounting purposes but not for tax purposes and vice versa. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- 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 | ||||||||||
|
- 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 | ||||||||||
|
- 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 | ||||||||||
|
- 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 | ||||||||||
|
- 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 | ||||||||||
|
- Definition
The cash outflow to reacquire common stock during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash outflow for loan and debt issuance costs. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- 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 | ||||||||||
|
- Definition
The cash outflow associated with other investments held by the entity for investment purposes not otherwise defined in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- Definition
The amount of pension and other (such as medical, dental and life insurance) postretirement benefit costs recognized during the period for (1) defined benefit plans (periodic benefit costs include the following components: service cost, interest cost, expected return on plan assets, gain (loss) on assets, prior service cost or credit, transition asset or obligation, and gain (loss) due to settlements or curtailments) and for (2) defined contribution plans (to the extent that a plan's defined contributions to an individual's account are to be made for periods in which that individual renders services, the net cost for a period is the contribution called for in that period; if a plan calls for contributions for periods after an individual retires or terminates, the estimated cost is accrued during the employee's service period). Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- 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 | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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 | ||||||||||
|
- 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 | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- 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
|
| X | ||||||||||
|
- Definition
The cash used to settle the borrowing issued by the entity involved in financial services operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| 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
|
|
(1) Summary of Significant Accounting Policies
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Dec. 31, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Significant Accounting Policies [Text Block] |
(1)
Summary of Significant Accounting Policies
Description
of Business
Consumer
Portfolio Services, Inc. ("CPS")
was incorporated in California on March 8, 1991. CPS and its
subsidiaries (collectively, the "Company")
specialize in purchasing and servicing retail automobile
installment sale contracts ("Contracts")
originated by licensed motor vehicle dealers ("Dealers")
located throughout the United States. Dealers located in
California, Texas, Pennsylvania, and Georgia represented
14.3%, 10.1%, 8.0% and 5.4%, respectively, of contracts
purchased during 2011 compared with 15.9%, 8.6%, 7.5% and
5.2%, respectively in 2010. No other state had a
concentration in excess of 5.4% in 2011. We specialize in
Contracts with borrowers who generally would not be expected
to qualify for traditional financing provided by commercial
banks or automobile manufacturers’ captive finance
companies.
We
are subject to various regulations and laws as they relate to
the extension of credit in consumer credit transactions.
Although we believe we are currently in material compliance
with these regulations and laws, there can be no assurance
that we will be able to maintain such compliance. Failure to
comply with such laws and regulations could have a material
adverse effect on the Company.
Acquisitions
On
March 8, 2002, we acquired MFN Financial Corporation and its
subsidiaries in a merger (the "MFN
Merger").
On May 20, 2003, we acquired TFC Enterprises, Inc. and its
subsidiaries in a second merger (the "TFC
Merger").
Each merger was accounted for as a purchase. MFN Financial
Corporation and its subsidiaries ("MFN")
and TFC Enterprises, Inc. and its subsidiaries ("TFC")
were engaged in similar businesses: buying contracts from
Dealers, financing those contracts through securitization
transactions, and servicing those contracts. MFN ceased
acquiring contracts in March 2002; TFC acquired contracts
under its "TFC
Programs" until July 2008 when such purchases were
suspended.
On
April 2, 2004, we purchased a portfolio of contracts and
certain other assets (the "SeaWest
Asset Acquisition")
from SeaWest Financial Corporation ("SeaWest").
In addition, we were named the successor servicer for three
term securitization transactions originally sponsored by
SeaWest (the "SeaWest
Third Party Portfolio").
We do not offer financing programs similar to those
previously offered by SeaWest.
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.
Principles
of Consolidation
The
Consolidated Financial Statements include the accounts of
Consumer Portfolio Services, Inc. and its wholly-owned
subsidiaries, certain of which are Special Purpose
Subsidiaries ("SPS"),
formed to accommodate the structures under which we purchase
and securitize our contracts. The Consolidated Financial
Statements also include the accounts of CPS Leasing, Inc., an
80% owned subsidiary. All significant intercompany balances
and transactions have been eliminated in
consolidation.
Cash
and Cash Equivalents
For
purposes of the statements of cash flows, we consider all
highly liquid debt instruments with original maturities of
three months or less to be cash equivalents. Cash equivalents
consist of cash on hand and due from banks and money market
accounts. Substantially all of our cash is deposited at two
financial institutions. We maintain cash due from banks in
excess of the banks' insured deposit limits. We do not
believe we are exposed to any significant credit risk on
these deposits. As part of certain financial covenants
related to debt facilities, we are required to maintain a
minimum unrestricted cash balance. As of December 31, 2011,
our unrestricted cash balance was $10.1 million.
Finance
Receivables
Finance
receivables, which we have the intent and ability to hold for
the foreseeable future or until maturity or payoff, are
presented at cost. All finance receivable contracts are held
for investment. Interest income is accrued on the unpaid
principal balance. Origination fees, net of certain direct
origination costs, are deferred and recognized in interest
income using the interest method without anticipating
prepayments. Generally, payments received on finance
receivables are restricted to certain securitized pools, and
the related contracts cannot be resold. Finance receivables
are charged off pursuant to the controlling documents of
certain securitized pools, generally before they become
contractually delinquent five payments. Contracts that are
deemed uncollectible prior to the maximum delinquency period
are charged off immediately. Management may authorize an
extension of payment terms if collection appears likely
during the next calendar month.
Our
portfolio of finance receivables consists of small-balance
homogeneous contracts that are collectively evaluated for
impairment on a portfolio basis. 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.
Allowance
for Finance Credit Losses
In
order to estimate an appropriate allowance for losses likely
incurred on finance receivables, we use a loss allowance
methodology commonly referred to as "static
pooling,"
which stratifies the finance receivable portfolio into
separately identified pools based on their period of
origination, then uses historical performance of seasoned
pools to estimate future losses on current pools. Historical
loss experience is adjusted as necessary for current economic
conditions. We consider our portfolio of finance receivables
to be relatively homogenous and consequently we analyze
credit performance primarily in the aggregate rather than
stratification by any particular credit quality
indicator. 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
finance receivable contracts. For each monthly pool of
contracts that we purchase, we begin establishing the
allowance in the month of acquisition and increase it over
the subsequent eleven months, through a provision for losses
charged to our consolidated statement of
operations. Net losses incurred on finance
receivables are charged to the allowance. We evaluate the
adequacy of the allowance by examining current delinquencies,
the characteristics of the portfolio, the value of the
underlying collateral and historical loss trends. As
conditions change, our level of provisioning and/or allowance
may change.
Finance
Receivables and Related Debt Measured at Fair Value
In
September 2011 we purchased finance receivables from Fireside
Bank. These receivables are securing debt that was structured
specifically for the acquisition of this
portfolio. 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. We use
our own assumptions about the factors that we believe market
participants would 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. Interest income from
the receivables and interest expense on the debt 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.
Charge
Off Policy
Delinquent
Contracts for which the related financed vehicle has been
repossessed are generally charged off at the earliest of (1)
the month in which the proceeds from the sale of the financed
vehicle are received, (2) the month in which 90 days have
passed from the date of repossession or (3) the month in
which the Contract becomes seven scheduled payments past due
(see Repossessed and Other Assets below). The amount charged
off is the remaining principal balance of the Contract, after
the application of the net proceeds from the liquidation of
the financed vehicle. With respect to delinquent Contracts
for which the related financed vehicle has not been
repossessed, the remaining principal balance thereof is
generally charged off no later than the end of the month that
the Contract becomes five scheduled payments past due, and no
later than the end of the month that the Contract becomes
eight scheduled payments past due for other
receivables.
Contract
Acquisition Fees and Origination Costs
Upon
purchase of a Contract from a Dealer, we generally either
charge or advance the Dealer an acquisition fee. Dealer
acquisition fees and deferred origination costs are applied
to the carrying value of finance receivables and are accreted
into earnings as an adjustment to the yield over the
estimated life of the Contract using the interest
method.
Repossessed
and Other Assets
If
a Contract obligor fails to make or keep promises for
payments, or if the obligor is uncooperative or attempts to
evade contact or hide the vehicle, a supervisor will review
the collection activity relating to the account to determine
if repossession of the vehicle is warranted. Generally, such
a decision will occur between the 45th and 90th day past the
obligor’s payment due date, but could occur sooner or
later, depending on the specific circumstances. At the time
the vehicle is repossessed we stop accruing interest on the
Contract, and reclassify the remaining Contract balance to
the line item "Other assets" on our Consolidated Balance
Sheet at its estimated fair value less costs to sell.
Included in other assets in the accompanying balance sheets
are repossessed vehicles pending sale of $4.5 million and
$4.8 million at December 31, 2011 and 2010,
respectively.
Treatment
of Securitizations
Our
term securitization structure has generally been as
follows:
We
sell Contracts we acquire to a wholly-owned special purpose
subsidiary ("SPS"),
which has been established for the limited purpose of buying
and reselling our contracts. The SPS then transfers the same
Contracts to another entity, typically a statutory trust
("Trust").
The Trust issues interest-bearing asset-backed securities
("Notes"),
in a principal amount equal to or less than the aggregate
principal balance of the contracts. We typically sell these
contracts to the Trust at face value and without recourse,
except that representations and warranties similar to those
provided by the Dealer to us are provided by us to the Trust.
One or more investors purchase the Notes issued by the Trust
(the "Noteholders");
the proceeds from the sale of the Notes are then used to
purchase the contracts from us. We may retain or sell
subordinated Notes issued by the Trust. Through 2008, we
purchased a financial guaranty insurance policy for all of
our term securitizations, guaranteeing timely payment of
interest and ultimate payment of principal on the senior
Notes, from an insurance company (a "Note
Insurer").
In addition, we have provided "Credit
Enhancement"
for the benefit of the Note Insurer and the Noteholders in
three forms: (1) an initial cash deposit to a bank account (a
"Spread
Account")
held by the Trust, (2) overcollateralization of the
Notes, where the principal balance of the Notes issued is
less than the principal balance of the contracts, and (3) in
the form of subordinated Notes. The agreements governing the
securitization transactions (collectively referred to as the
"Securitization
Agreements")
require that the initial level of Credit Enhancement be
supplemented by a portion of collections from the contracts
until the level of Credit Enhancement reaches specified
levels, which are then maintained. The specified levels are
generally computed as a percentage of the principal amount
remaining unpaid under the related contracts. The specified
levels at which the Credit Enhancement is to be maintained
will vary depending on the performance of the portfolios of
contracts held by the Trusts and on other conditions, and may
also be varied by agreement among the Company, the SPS, the
Note Insurers and the trustee. Such levels have increased and
decreased from time to time based on performance of the
various portfolios, and have also varied by from one Trust to
another.
Our
warehouse securitization structures are similar to the above,
except that (i) the SPS that purchases the contracts pledges
the contracts to secure promissory notes that it issues, (ii)
no increase in the required amount of Credit Enhancement is
contemplated, and (iii) we do not purchase financial guaranty
insurance. Upon each sale of contracts in a securitization
structured as a secured financing, we retain as assets on our
Consolidated Balance Sheet the securitized contracts and
record as indebtedness the Notes issued in the
transaction.
For
all of the securitizations that we have completed since July
2003 (other than the September 2008 and September 2010
securitizations), we have the power to direct the most
significant activities of the SPS. In addition, we
have the obligation to absorb losses and the rights to
receive benefits from the SPS, both of which could be
potentially significant to the SPS. These types of
securitization structures are treated as secured financings,
in which the receivables remain on our consolidated balance
sheet, and the debt issued by the SPS is shown as a
securitization trust debt of the Company.
Under
the September 2008 and September 2010 securitizations and
other term securitizations completed prior to July 2003
(which were structured as sales for financial accounting
purposes), we removed from our Consolidated Balance Sheet the
contracts sold and added to our Consolidated Balance Sheet
(i) the cash received, if any, and (ii) the estimated fair
value of the ownership interest that we retained in contracts
sold in the securitization. That retained or residual
interest (the "Residual")
consists of (a) the cash held in the Spread Account, if any,
(b) overcollateralization, if any, (c) Notes retained, if
any, and (d) receivables from the Trust, which include the
net interest receivables ("NIRs").
NIRs represent the estimated discounted cash flows to be
received from the Trust in the future, net of principal and
interest payable with respect to the Notes, the premium paid
to the Note Insurer, if any, and certain other
expenses.
We
recognize gains or losses attributable to any changes in the
estimated fair value of the Residuals. Gains in fair value
are recognized as Other Income in the income statement, and
losses are recorded as an impairment loss in the income
statement. We are not aware of an active market for the
purchase or sale of interests such as the Residuals;
accordingly, we determine the estimated fair value of the
Residuals by discounting the amount of anticipated cash flows
that we estimate will be released to us in the future (the
cash out method), using a discount rate that we believe is
appropriate for the risks involved. The anticipated cash
flows may include collections from both current and charged
off receivables. We have used an effective pre-tax discount
rate of 20% per annum.
We
receive periodic base servicing fees for the servicing and
collection of the contracts. In addition, we are entitled to
the cash flows from the Trusts that represent collections on
the contracts in excess of the amounts required to pay
principal and interest on the Notes, the base servicing fees,
and the premium paid to the Note Insurer, and certain other
fees (such as trustee and custodial fees). Required principal
payments on the Notes are generally defined as the payments
sufficient to keep the principal balance of the Notes equal
to the aggregate principal balance of the related contracts
(excluding those contracts that have been charged off), or a
pre-determined percentage of such balance. Where that
percentage is less than 100%, the related Securitization
Agreements require accelerated payment of principal until the
principal balance of the Notes is reduced to the specified
percentage. Such accelerated principal payment is said to
create "overcollateralization"
of the Notes.
If
the amount of cash required for payment of fees, interest and
principal on the senior Notes exceeds the amount collected
during the collection period, the shortfall is generally
withdrawn from the Spread Account, if any. If the cash
collected during the period exceeds the amount necessary for
the above allocations plus required principal payments on the
subordinated Notes, if any, and there is no shortfall in the
related Spread Account or other form of Credit Enhancement,
the excess is released to us. If the total Credit Enhancement
amount is not at the required level, then the excess cash
collected is retained in the Trust until the specified level
is achieved. Cash in the Spread Accounts is restricted from
our use. Cash held in the various Spread Accounts is invested
in high quality, liquid investment securities, as specified
in the Securitization Agreements. In determining the value of
the Residuals, we have estimated the future rates of
prepayments, delinquencies, defaults, default loss severity,
and recovery rates, as all of these factors affect the amount
and timing of the estimated cash flows. Our estimates are
based on historical performance of comparable
contracts.
Following
a securitization that is structured as a sale for financial
accounting purposes, we recognize interest income on the
balance of the Residuals. In addition, we will recognize
additional revenue in other income if the actual performance
of the contracts related to the Residuals is better than our
estimate of the value of the Residual. If the actual
performance of the contracts is worse than our estimate, then
a reduction to the carrying value of the Residuals and a
related impairment charge would be required. In a
securitization structured as a secured financing for
financial accounting purposes, interest income is recognized
when accrued under the terms of the related contracts and,
therefore, presents less potential for fluctuations in
performance when compared to the approach used in a
transaction structured as a sale for financial accounting
purposes.
In
all of our term securitizations, whether treated as secured
financings or as sales, we have transferred the receivables
(through a subsidiary) to the securitization Trust. The
difference between the two structures is that in
securitizations that are treated as secured financings we
report the assets and liabilities of the securitization Trust
on our Consolidated Balance Sheet. Under both structures the
Noteholders’ and the related securitization
Trusts’ recourse to us for failure of the contract
obligors to make payments on a timely basis is limited, in
general, to our Finance receivables, Spread Accounts and
Residuals.
Servicing
We
consider the contractual servicing fee received on our
managed portfolio held by non-consolidated subsidiaries to be
equal to adequate compensation. Additionally, we consider
that these fees would fairly compensate a substitute
servicer, should one be required. As a result, no servicing
asset or liability has been recognized. Servicing fees
received on the managed portfolio held by non-consolidated
subsidiaries are reported as income when earned. Servicing
fees received on the managed portfolio held by consolidated
subsidiaries are included in interest income when earned.
Servicing costs are charged to expense as incurred. Servicing
fees receivable, which are included in Other Assets in the
accompanying balance sheets, represent fees earned but not
yet remitted to us by the trustee.
Furniture
and Equipment
Furniture
and equipment are stated at cost net of accumulated
depreciation. We calculate depreciation using the
straight-line method over the estimated useful lives of the
assets, which range from three to five years. Assets held
under capital leases and leasehold improvements are amortized
over the lesser of the estimated useful lives of the assets
or the related lease terms. Amortization expense on assets
acquired under capital lease is included with depreciation
expense on owned assets.
Impairment
of Long-Lived Assets and Long-Lived Assets to Be Disposed
Of
Long-lived
assets and certain identifiable intangibles are reviewed for
impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be
recoverable. Recoverability of assets to be held and used is
measured by a comparison of the carrying amount of an asset
to future net cash flows expected to be generated by the
asset. If such assets are considered to be impaired, the
impairment to be recognized is measured by the amount by
which the carrying amount of the assets exceeds the fair
value of the assets. Assets to be disposed of are reported at
the lower of carrying amount or fair value less costs to
sell.
Other
Income
The
following table presents the primary components of Other
Income:
Earnings
(Loss) Per Share
The
following table illustrates the computation of basic and
diluted earnings (loss) per share:
Incremental
shares of 2.9 million and 3.2 million related to stock
options and warrants have been excluded from the diluted
earnings per share calculation for the year ended December
31, 2011 and 2010, respectively, because the effect is
anti-dilutive. The exercise prices of these stock options
were greater than the average market price of the
Company’s common shares or the Company was in a net
loss position and, therefore, the effect would be
anti-dilutive to earnings (loss) per share.
Deferral
and Amortization of Debt Issuance Costs
Costs
related to the issuance of debt are deferred and amortized
using the interest method over the contractual or expected
term of the related debt.
Income
Taxes
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.
Purchases
of Company Stock
We
record purchases of our own common stock at cost and treat
the shares as retired.
Stock
Option Plan
We
recognize compensation costs in the financial statements for
all share-based payments granted subsequent to January 1,
2006 based on the grant date fair value estimated in
accordance with the provisions of FASB ASC 718
“Accounting for Stock Based Compensation”.
Compensation cost is recognized over the required service
period, generally defined as the vesting period.
The
per share weighted-average fair value of stock options
granted during the years ended December 31, 2011 and 2010 was
$0.53 and $1.11, respectively. That fair value was estimated
using the Black-Scholes option pricing model using the
weighted average assumptions noted in the following table. We
estimate the expected life of each option as the average of
the vesting period and the contractual life of the option.
The volatility estimate is based on the historical volatility
of our stock over the period that equals the expected life of
the option. Volatility assumptions ranged from 62% to 81% for
2011 and 78% to 125% for 2010. The risk-free interest rate is
based on the yield on a U.S. Treasury bond with a maturity
comparable to the expected life of the option. The dividend
yield is estimated to be zero based on our intention not to
issue dividends for the foreseeable future.
New
Accounting Pronouncements
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 in a two separate consecutive
statement approach and changes the presentation of
reclassification items out of other comprehensive income to
net income. In December 2011, the FASB deferred certain
provisions related to the reclassifications of items out of
accumulated other comprehensive income and the presentation
of the reclassification items. Since we already take the two
separate consecutive statement approach in presenting other
comprehensive income, the adoption of this amendment will not
change our presentation of the components of comprehensive
income. The other provisions of the amendment are effective
for fiscal and interim periods beginning after December 15,
2011.
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.
Reclassification
Certain
amounts for the prior years have been reclassified to conform
to the current year’s presentation with no effect on
previously reported earnings or shareholders’
equity.
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. Basic and diluted loss per common share
decreased by $0.04 per share from previously reported amounts
as of the December 31, 2010. Net shareholders’ equity
decreased by $2.1 million compared to the amounts previously
reported as of December 31, 2010.
Financial
Covenants
Certain
of our securitization transactions, our residual interest
financing and our warehouse credit facilities contain various
financial covenants requiring certain minimum financial
ratios and results. Such covenants include maintaining
minimum levels of liquidity and net worth and not exceeding
maximum leverage levels. In addition, certain securitization
and non-securitization related debt 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 twelve 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 fourth transaction insured by
this particular note insurer does not contain financial
covenants.
During
2011 we received waivers regarding the potential breach of
certain covenants relating to minimum net worth and
maintenance of active warehouse credit facilities. Without
such waivers, certain credit enhancement providers would have
had the right to terminate us as servicer with respect to
certain of outstanding securitization pools. In February
2012, the remaining notes associated with the securitization
transactions for which we received waivers in 2011 were paid
in full. We are in compliance with all financial covenants as
of December 31, 2011.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| X | ||||||||||
|
- Definition
The entire disclosure for all significant accounting policies of the reporting entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
(2) Restricted Cash
|
12 Months Ended |
|---|---|
|
Dec. 31, 2011
|
|
| Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] |
(2) Restricted
Cash
Restricted
cash consists of cash and cash equivalent accounts relating
to our outstanding securitization trusts and credit
facilities. The amount of restricted cash on our consolidated
balance sheets was $159.2 million and $124.0 million as of
December 31, 2011 and 2010, respectively.
Certain
of our financing agreements require that we establish cash
reserves for the benefit of the creditors to protect against
unforeseen credit losses on the Contracts. These cash
reserves, which are included in restricted cash, were $82.4
million and $95.2 million as of December 31, 2011 and 2010,
respectively.
|
| X | ||||||||||
|
- Definition
Entity's cash and cash equivalents accounting policy with respect to restricted balances. Restrictions may include legally restricted deposits held as compensating balances against short-term borrowing arrangements, contracts entered into with others, or company 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. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
(3) Finance Receivables
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Dec. 31, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financing Receivables [Text Block] |
(3)
Finance Receivables
We
consider our portfolio of finance receivables to be
homogenous and consist of a single segment and
class. Consequently we analyze credit performance
primarily in the aggregate rather than stratification by any
particular credit quality indicator. 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. In cases where
the due date may have been extended, 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. 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 December 31, 2010 and 2011:
Finance
receivables totaling $13.0 million and $13.3 million at
December 31, 2011 and 2010, respectively, have been placed on
non-accrual status as a result of their delinquency
status.
The
following table presents a summary of the activity for the
allowance for credit losses, for the years ended December 31,
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:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| X | ||||||||||
|
- Definition
The entire disclosure for financing receivables. Examples of financing receivables include, but are not limited to, loans, trade accounts receivables, notes receivable, credit cards, and receivables relating to a lessor's right(s) to payment(s) from a lease other than an operating lease that is recognized as assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
(4) Finance Receivables Measured at Fair Value
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Dec. 31, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value of Financial Instruments, Policy [Policy Text Block] |
(4)
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 and includes $1.5 million
in repossessed inventory at December 31, 2011:
The
following table summarizes the delinquency status of finance
receivables measured at fair value as of December 31, 2011
(we held no such receivables at December 31, 2010):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| X | ||||||||||
|
- Definition
Disclosure of accounting policy for determining the fair value of financial instruments. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
(5) Residual Interest in Securitizations
|
12 Months Ended |
|---|---|
|
Dec. 31, 2011
|
|
| Residual Interest In Securitzations [Text Block] |
(5)
Residual Interest in Securitizations
In
September 2008 we completed a structured loan sale in which
we retained a residual interest. The remaining receivables
from that September 2008 securitization were re-securitized
in September 2010. The residual interest in the cash flows
from this transaction was $4.4 million and $3.8 million as of
December 31, 2011 and 2010, respectively, and was determined
using a discounted cash flow model that included estimates
for prepayments and losses. The discount rate
utilized was 20%. The assumptions utilized were based on our
historical performance adjusted for current market
conditions.
|
| X | ||||||||||
|
- Definition
Discussion of residual interest in securitization No definition available.
|
|
(6) Furniture and Equipment
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Dec. 31, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment Disclosure [Text Block] |
(6)
Furniture and Equipment
The
following table presents the components of furniture and
equipment:
Depreciation
expense totaled $672,000 and $649,000 for the years ended
December 31, 2011 and 2010, respectively.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| X | ||||||||||
|
- Definition
The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. 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. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
(7) Securitization Trust Debt
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Dec. 31, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-term Debt [Text Block] |
(7)
Securitization Trust Debt
We
have completed a number of term securitization transactions
that are structured as secured borrowings for financial
accounting purposes. The debt issued in these transactions is
shown on our 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 issued in private
placement transactions to qualified institutional investors.
The debt was issued through wholly-owned, bankruptcy remote
subsidiaries of CPS and is secured by the assets of such
subsidiaries, but not by other assets of the Company.
Principal and interest payments on the senior notes for our
securitization transactions through 2008 are guaranteed by
financial guaranty insurance policies.
The
terms of the various securitization agreements related to the
issuance of the securitization trust debt require that
certain delinquency and credit loss criteria be met with
respect to the collateral pool, and require that we maintain
minimum levels of liquidity and net worth and not exceed
maximum leverage levels. We were in compliance with all such
covenants as of December 31, 2011, in one case only as a
result of an amendment.
We
are responsible for the administration and collection of the
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
December 31, 2011, restricted cash under the various
agreements totaled approximately $146.5 million. Interest
expense on the securitization trust debt is composed of the
stated rate of interest plus amortization of additional costs
of borrowing. Additional costs of borrowing include facility
fees, insurance premiums, amortization of transaction costs,
and amortization of discounts required on the notes at the
time of issuance. Deferred financing costs related to the
securitization trust debt are amortized using the interest
method. Accordingly, the effective cost of borrowing of the
securitization trust debt is greater than the stated rate of
interest.
The
wholly-owned, bankruptcy remote subsidiaries of CPS 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 the Company or its
affiliates.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| X | ||||||||||
|
- Definition
The entire disclosure for long-term debt. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
(8) Debt
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Dec. 31, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Text Block] |
(8)
Debt
The
terms of our debt outstanding at December 31, 2011 and 2010
are summarized below:
The
outstanding debt on our warehouse credit facilities was $25.4
million as of December 31, 2011, compared to $45.6 million
outstanding as of December 31, 2010. See Note 16
for a discussion of our warehouse lines of credit.
The
costs incurred in conjunction with the above debt are
recorded as deferred financing costs on the accompanying
balance sheets and are more fully described in Note 1.
We
must comply with certain affirmative and negative covenants
related to debt facilities, which require, among other
things, that we maintain certain financial ratios related to
liquidity, net worth and capitalization. Further covenants
include matters relating to investments, acquisitions,
restricted payments and certain dividend
restrictions. See the discussion of financial
covenants in footnote 1.
The
following table summarizes the contractual and expected
maturity amounts of debt as of December 31, 2011:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| X | ||||||||||
|
- 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
|
|
(9) Shareholders' Equity
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Dec. 31, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' Equity Note Disclosure [Text Block] |
(9)
Shareholders’ Equity
Common
Stock
Holders
of common stock are entitled to such dividends as our Board
of Directors, in its discretion, may declare out of funds
available, subject to the terms of any outstanding shares of
preferred stock and other restrictions. In the event of
liquidation of the Company, holders of common stock are
entitled to receive, pro rata,
all of the assets of the Company available for distribution,
after payment of any liquidation preference to the holders of
outstanding shares of preferred stock. Holders of the shares
of common stock have no conversion or preemptive or other
subscription rights and there are no redemption or sinking
fund provisions applicable to the common stock.
We
are required to comply with various operating and financial
covenants defined in the agreements governing the warehouse
lines of credit, senior debt, residual interest financing and
subordinated debt. The covenants for the senior debt,
residual interest financing and subordinated debt restrict
the payment of certain distributions, including dividends
(See Note 8).
Included
in compensation expense for the years ended December 31, 2011
and 2010, is $1.5 million and $1.6 million, respectively,
related to the amortization of deferred compensation expense
and valuation of stock options.
Stock
Purchases
At
five different times between 2000 and 2011, our Board of
Directors authorized us to purchase a total of up to $34.5
million of our securities. As of December 31, 2011, we had
purchased $5.0 million in principal amount of debt
securities, and $28.0 million of our common stock,
representing 9,480,566 shares.
Options
and Warrants
In
2006, the Company adopted and its shareholders approved the
CPS 2006 Long-Term Equity Incentive Plan (the “2006
Plan”) pursuant to which our Board of Directors, or a
duly-authorized committee thereof, may grant stock options,
restricted stock, restricted stock units and stock
appreciation rights to our employees or our subsidiaries, to
directors of the Company, and to individuals acting as
consultants to the Company or its subsidiaries. In June 2008,
the shareholders of the Company approved an amendment to the
2006 Plan to increase the maximum number of shares that may
be subject to awards under the 2006 Plan from 3,000,000 to
5,000,000, in each case plus shares authorized under prior
plans and not issued. Options that have been
granted under the 2006 Plan and a previous plan approved in
1997 have been granted at an exercise price equal to (or
greater than) the stock’s fair market value at the date
of the grant, with terms generally of 10 years and vesting
generally over five years.
For
the year ended December 31, 2011, we recorded stock-based
compensation costs in the amount of $1.5 million. As of
December 31, 2011, unrecognized stock-based compensation
costs to be recognized over future periods was equal to $2.1
million. This amount will be recognized as expense over a
weighted-average period of 2.6 years.
At
December 31, 2011, the options outstanding and exercisable
had intrinsic values of $149,000 and $72,000, respectively.
The total intrinsic value of options exercised was $4,000 for
the year ended December 31, 2011. No options were exercised
in 2010. New shares were issued for all options exercised
during the year ended December 2011 and cash of $7,000 was
received. No tax benefit was recorded for the options
exercised in 2011. At December 31, 2011, there were a total
of 577,000 additional shares available for grant under the
2006 Plan.
Stock
option activity for the year ended December 31, 2011 for
stock options under the 2006 and 1997 plans is as
follows:
The
per share weighted average fair value of stock options
granted whose exercise price was equal to the market price of
the stock on the grant date during the years ended December
31, 2011 and 2010, was $1.01 and $1.11, respectively.
The
per share weighted average exercise price of stock options
granted whose exercise price was above the market price of
the stock on the grant date during the year ended December
31, 2011 and 2010 was $1.67 and $1.50, respectively.
We
have not issued any stock options with an exercise price
below the market price of the stock on the grant date.
On
June 30, 2008, we entered into a series of agreements
pursuant to which a lender purchased a $10 million five-year,
fixed rate, senior secured note from us. In July
2008, in conjunction with the amendment of the combination
term and revolving residual credit facility as discussed
above, the lender purchased an additional $15 million note
with substantially the same terms as the $10 million
note. Pursuant to the June 30, 2008 securities
purchase agreement, we issued to the lender 1,225,000 shares
of common stock. In addition, we issued the lender
two warrants: (i) warrants that we refer to as the FMV
Warrants, which are exercisable for 1,611,114 shares of our
common stock, at an exercise price of $1.39818 per share, and
(ii) warrants that we refer to as the N Warrants, which are
exercisable for 285,781 shares of our common stock, at a
nominal exercise price. Both the FMV Warrants and the N
Warrants are exercisable in whole or in part and at any time
up to and including June 30, 2018.
In
connection with the amendment to our residual credit facility
discussed in Note 16, we issued warrants valued as being
equivalent to 2,500,000 common shares, or
$4,071,429. The warrants represented the right to
purchase 2,500,000 CPS common shares at a nominal exercise
price, at any time prior to July 10, 2018. In March 2010 we
re-purchased 500,000 shares for $1.0 million.
A
warrant to purchase 1,158,087 shares of our common stock at
an exercise price of $0.879 per share is outstanding at
December 31, 2011 which was issued in connection with our $50
million secured revolving credit facility established in
September 2009. Warrants to purchase 500,000 of our common
shares at an exercise price of $1.41 per share are
outstanding. These warrants were issued to the note
purchasers in our March 2010 $50 million term funding
facility.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| X | ||||||||||
|
- Definition
The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
(10) Interest Income
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Dec. 31, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest and Other Income [Text Block] |
(10)
Interest Income
The
following table presents the components of interest
income:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| X | ||||||||||
|
- Definition
The entire disclosure for interest and other income. No definition available.
|
|
(11) Income Taxes
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Dec. 31, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Text Block] |
(11) Income
Taxes
Income
taxes consist of the following:
Income
tax expense/(benefit) for the years ended December 31, 2011
and 2010 differs from the amount determined by applying the
statutory federal rate of 35% to income before income taxes
as follows:
The
tax effected cumulative temporary differences that give rise
to deferred tax assets and liabilities as of December 31,
2011 and 2010 are as follows:
As
part of the MFN and TFC Mergers, CPS acquired certain net
operating losses and built-in loss assets. Moreover, both MFN
and TFC have undergone an ownership change for purposes of
Internal Revenue Code (“IRC”) Section 382. In
general, IRC Section 382 imposes an annual limitation on the
ability of a loss corporation (that is, a corporation with a
net operating loss (“NOL”) carryforward, credit
carryforward, or certain built-in losses (“BILs”)
to utilize its pre-change NOL carryforwards or BILs to offset
taxable income arising after an ownership change.
In
determining the possible future realization of deferred tax
assets, we have considered 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 which may significantly impact
actual net proceeds we may receive from executing our tax
planning strategies. A summary of the assets, key
assumptions and estimated taxable income is shown in the
table below:
We
believe such asset sales can produce at least $61.2 million
in taxable income within the relevant carryforward period.
Such strategies could be implemented without significant
impact 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.
At
December 31, 2011 we have established a $61.7 million
valuation allowance against that portion of the deferred tax
asset whose utilization in future periods is not more than
likely.
As
of December 31, 2011, we had net operating loss carryforwards
for federal and state income tax purposes of $132.6 million
and $215.2 million, respectively. The federal net
operating losses begin to expire in 2022. The state net
operating losses begin to expire in 2013.
The
following is a tabular reconciliation of the total amounts of
unrecognized tax benefits including interest and penalties
for the year:
Included
in the balance of unrecognized tax benefits at December 31,
2011, are $2.0 million of tax benefits that, if recognized,
would affect the effective tax rate.
We
recognize a tax position as a benefit only if it is
“more likely than not” that the tax position
would be sustained in a tax examination, with a tax
examination being presumed to occur. The amount recognized is
the largest amount of tax benefit that is greater than 50%
likely of being realized on examination. For tax positions
not meeting the “more likely than not” test, no
tax benefit is recorded.
We
recognize potential interest and penalties related to
unrecognized tax benefits as income tax expense. Related to
the uncertain tax benefits noted above, we reduced penalties
by $120,000 and increased gross interest by $2,000 during
2011 and in total, as of December 31, 2011, have recognized a
liability for penalties of $160,000 and gross interest of
$696,000.
We
do not anticipate a significant change in unrecognized tax
positions within the coming year. In addition, we
believe that it is reasonably possible that none of our
currently remaining unrecognized tax positions, each of which
is individually insignificant, may be recognized by the end
of 2011 as a result of a lapse of the statute of
limitations.
We
are subject to taxation in the US and various states and
foreign jurisdictions. The Company’s tax
years for 2007 through 2010 are subject to examination by the
tax authorities. With few exceptions, we are no
longer subject to U.S. federal, state, or local examinations
by tax authorities for years before 2007.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| X | ||||||||||
|
- 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
|
|
(12) Related Party Transactions
|
12 Months Ended |
|---|---|
|
Dec. 31, 2011
|
|
| Related Party Transactions Disclosure [Text Block] |
(12)
Related Party Transactions
Director
Purchase of Retail Note
In
December 2007, one of our directors purchased a $4.0 million
subordinated renewable note pursuant to our ongoing program
of issuing such notes to the public. The note was
purchased through the registered agent and under the same
terms and conditions, including the interest rate, that were
offered to other purchasers at the time the note was issued.
As of December 31, 2011, $4.0 million remains outstanding on
this note.
|
| X | ||||||||||
|
- Definition
The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
(13) Commitments and Contingencies
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Dec. 31, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Text Block] |
(13)
Commitments and Contingencies
Leases
The
Company leases its facilities and certain computer equipment
under non-cancelable operating leases, which expire through
2018. Future minimum lease payments at December 31, 2011,
under these leases are due during the years ended December 31
as follows:
Rent
expense for the years ended December 31, 2011 and 2010, was
$3.2 million and $3.6 million, respectively.
Our
facility leases contain certain rental concessions and
escalating rental payments, which are recognized as
adjustments to rental expense and are amortized on a
straight-line basis over the terms of the leases.
Litigation
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”)
pursuant to earlier settlements of claims, generally personal
injury claims, against unrelated defendants. Stanwich
Financial Services Corp. (“Stanwich”), an
affiliate of the former chairman of our board of directors,
is the entity that was obligated to pay the Settlement
Payments. Stanwich defaulted on its payment obligations to
the plaintiffs and in June 2001 filed for reorganization
under the Bankruptcy Code, in the federal bankruptcy court in
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. The litigation between Mr.
Pardee and us was stayed for several years through September
2011, awaiting resolution of an adversary action brought
against Mr. Pardee in the bankruptcy court, which is hearing
the bankruptcy of Stanwich.
Pursuant
to an agreement with the representative of creditors in the
Stanwich bankruptcy, that adversary action has
been dismissed. Under that agreement, we paid the
bankruptcy estate $800,000 and abandoned our claims against
the estate, while the estate has abandoned its adversary
action against Mr. Pardee. 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 an adverse judgment against us in
the Rhode Island case for indemnification, if in an amount
materially in excess of any liability already recorded in
respect thereof, could have a material adverse effect on our
financial condition.
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 their outcomes. We have recorded a liability as of
December 31, 2011 that we believe represents a sufficient
allowance for legal contingencies. The amount of losses that
are at least reasonably possible above what has already been
accrued for cannot be estimated. 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 or results of operations.
|
|||||||||||||||||||||||||||||||||||||||||||||
| X | ||||||||||
|
- Definition
The entire disclosure for commitments and contingencies. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
(14) Employee Benefits
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Dec. 31, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pension and Other Postretirement Benefits Disclosure [Text Block] |
(14) Employee
Benefits
The
Company sponsors a pretax savings and profit sharing plan
(the “401(k) Plan”) qualified under Section
401(k) of the Internal Revenue Code. Under the 401(k) Plan,
eligible employees are able to contribute up to 15% of their
compensation (subject to stricter limitation in the case of
highly compensated employees). We may, at our discretion,
match 100% of employees’ contributions up to $1,500 per
employee per calendar year. Our contributions to the 401(k)
Plan were $10,000 and $74,000 for the year ended December 31,
2011 and 2010, respectively.
We
also sponsor a defined benefit plan, the MFN Financial
Corporation Pension Plan (the “Plan”). The Plan
benefits were frozen on June 30, 2001.
The
following tables represents a reconciliation of
the change in the plan’s benefit obligations, fair
value of plan assets, and funded status at December 31, 2011
and 2010:
Additional
Information
Weighted
average assumptions used to determine benefit obligations and
cost at December 31, 2011 and 2010 were as follows:
Our
overall expected long-term rate of return on assets is 8.50%
per annum as of December 31, 2011. The expected long-term
rate of return is based on the weighted average of historical
returns on individual asset categories, which are described
in more detail below.
The
amount included in accumulated other comprehensive income to
be recognized as components of net periodic benefit cost in
2012 is $600,000.
The
weighted average asset allocation of our pension benefits at
December 31, 2011 and 2010 were as follows:
Our
investment policies and strategies for the pension benefits
plan utilize a target allocation of 75% equity securities
and 25% fixed income securities. Our investment goals are
to maximize returns subject to specific risk management
policies. We address risk management and diversification by
the use of a professional investment advisor and several
sub-advisors which invest in domestic and international
equity securities and domestic fixed income securities.
Each sub-advisor focuses its investments within a specific
sector of the equity or fixed income market. For the
sub-advisors focused on the equity markets, the sectors are
differentiated by the market capitalization and the
relative valuation of the underlying issuer. For the
sub-advisors focused on the fixed income markets, the
sectors are differentiated by the credit quality and the
maturity of the underlying fixed income investment. The
investments made by the sub-advisors are readily marketable
and can be sold to fund benefit payment obligations as they
become payable.
The
fair value of plan assets at December 31, 2011, by asset
category, is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| X | ||||||||||
|
- Definition
The entire disclosure for pension and other postretirement benefits. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
(15) Fair Value Measurements
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Dec. 31, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Text Block] |
(15) 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 classify these
warrants as level 3 in the three-level
valuation hierarchy as the inputs to its valuation
methodology are unobservable and significant. We valued these
warrants using a binomial valuation model using a weighted
average volatility assumption of 39%, weighted average term
of 7 years and a risk free rate of 1.4%. We estimated the
value of these warrants to be $967,000, which is classified
as a liability on our consolidated balance sheet as of
December 31, 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 $4.4 million as of December 31, 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.
In
September 2011, we acquired $217.8 million of finance
receivables from Fireside Bank for a purchase price of $199.6
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. Our estimate of the fair
values of the Fireside receivables is performed on a pool
basis, rather than separately on each individual
receivable.
The
table below presents a reconciliation for Level 3 assets
measured at fair value on a recurring basis using significant
unobservable inputs:
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 December 31, 2011, the finance
receivables related to the repossessed vehicles in
inventory totaled $9.3 million. We have applied a valuation
adjustment of $4.8 million, resulting in an estimated fair
value and carrying amount of $4.5 million. There were no
transfers in or out of Level 2 during the year.
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,
considerable judgments 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 December 31, 2011 and 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
December 31, 2011 and 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.
Finance
Receivables at Fair Value and Debt Secured by Receivables at
Fair Value
The
carrying value equals fair value.
Residual
Interest in Securitizations
The
fair value is estimated by discounting future cash flows
using credit and discount rates that we believe reflect the
estimated credit, interest rate and prepayment risks
associated with similar types of instruments.
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, Notes Payable, 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.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| X | ||||||||||
|
- Definition
The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
(16) Liquidity, Results of Operations and Management's Plans
|
12 Months Ended |
|---|---|
|
Dec. 31, 2011
|
|
| Liquidity Disclosure [Policy Text Block] |
(16) Liquidity,
Results of Operations and Management’s
Plans
Our
business requires substantial cash to support purchases of
automobile contracts and other operating activities.
Our primary sources of cash have been cash flows
from operating activities, including proceeds from term
securitization transactions and other sales of automobile
contracts, amounts borrowed under warehouse credit
facilities, servicing fees on portfolios of automobile
contracts previously sold in securitization transactions or
serviced for third parties, customer payments of principal
and interest on finance receivables, fees for origination of
automobile contracts, and releases of cash from securitized
portfolios of automobile contracts in which we have retained
a residual ownership interest and from the spread accounts
associated with such pools. Our primary uses of cash have
been the purchases of automobile contracts, repayment of
amounts borrowed under warehouse credit facilities and
otherwise, operating expenses such as employee, interest,
occupancy expenses and other general and administrative
expenses, the establishment of spread accounts and initial
overcollateralization, if any, and the increase of credit
enhancement to required levels in securitization
transactions, and income taxes. There can be no assurance
that internally generated cash will be sufficient to meet our
cash demands. The sufficiency of internally generated cash
will depend on the performance of securitized pools (which
determines the level of releases from those portfolios and
their related spread accounts), the rate of expansion or
contraction in our managed portfolio, and the terms upon
which we are able to purchase, sell, and borrow against
automobile contracts.
We
purchase automobile contracts from dealers for a cash price
approximating their principal amount, adjusted for an
acquisition fee which may either increase or decrease the
automobile contract purchase price. Those automobile
contracts generate cash flow, however, over a period of
years. As a result, we have been dependent on warehouse
credit facilities to purchase automobile contracts, and on
the availability of cash from outside sources in order to
finance our continuing operations, as well as to fund the
portion of automobile contract purchase prices not financed
under revolving warehouse credit facilities.
The
acquisition of automobile contracts for subsequent sale in
securitization transactions, and the need to fund spread
accounts and initial overcollateralization, if any, and
increase credit enhancement levels when those transactions
take place, results in a continuing need for capital. The
amount of capital required is most heavily dependent on the
rate of our automobile contract purchases, the required level
of initial credit enhancement in securitizations, and the
extent to which the previously established trusts and their
related spread accounts either release cash to us or capture
cash from collections on securitized automobile contracts. Of
those, the factor most subject to our control is the rate at
which we purchase automobile contracts.
We
are and may in the future be limited in our ability to
purchase automobile contracts due to limits on our
capital. As of December 31, 2011, we had
unrestricted cash of $10.1 million. We had $74.6
million available under one warehouse credit facility and
$100 million available under our other warehouse credit
facility (in both facilities advances are subject to
available eligible collateral). During 2011 we
completed three securitizations aggregating $335.6 million of
newly originated receivables, and we intend to complete
securitizations regularly during in 2012, although there can
be no assurance that we will be able to so. Our
plans to manage our liquidity include maintaining our rate of
automobile contract purchases at a level that matches our
available capital, and, wherever appropriate, reducing our
operating costs. If we are unable to complete such
securitizations, we may be unable to increase our rate of
automobile contract purchases, in which case our interest
income and other portfolio related income would
decrease.
Our
liquidity will also be affected by releases of cash from the
trusts established with our securitizations. While
the specific terms and mechanics of each spread account vary
among transactions, our securitization agreements generally
provide that we will receive excess cash flows, if any, only
if the amount of credit enhancement has reached specified
levels and/or the delinquency, defaults or net losses related
to the automobile contracts in the pool are below certain
predetermined levels. In the event delinquencies, defaults or
net losses on the automobile contracts exceed such levels,
the terms of the securitization: (i) may require increased
credit enhancement to be accumulated for the particular pool;
(ii) may restrict the distribution to us of excess cash flows
associated with other pools; or (iii) in certain
circumstances, may permit the insurers to require the
transfer of servicing on some or all of the automobile
contracts to another servicer. There can be no assurance that
collections from the related trusts will continue to generate
sufficient cash. Moreover, most of our
spread account balances are pledged as collateral to our
residual interest financing. As such, most of the
current releases of cash from our securitization trusts are
directed to pay the obligations of our residual interest
financing.
Our
plan for future operations and meeting the obligations of our
financing arrangements includes returning to profitability
and eliminating our shareholders’ deficit by gradually
increasing the amount of our contract purchases with the goal
of increasing the balance of our outstanding managed
portfolio. Our plans also include financing future
contract purchases with credit facilities and term
securitizations that offer a lower overall cost of funds
compared to the facilities we used in 2009 and
2010. To illustrate, in the last six months of
2009 we purchased $6.1 million in contracts and our sole
credit facility had a minimum interest rate of 14.00% per
annum. By comparison, in 2010, we purchased $113.0
million in contracts and, in March 2010, entered into the $50
million term funding facility which had an interest rate of
11.00% per annum and the ability to decrease such rate to
9.00% per annum if certain conditions are met. In
December 2010 we entered into a $100 million credit facility
with an interest rate of one-month LIBOR plus 5.00% per
annum, with a minimum rate of 6.5% per annum, and in February
2011 we added another $100 million credit facility with an
interest rate of one-month LIBOR plus 6.00% per
annum. During 2011, we used the two $100 million
credit facilities to purchase $284.2 million in new
contracts.
Moreover,
the weighted average effective coupons of our April 2011,
September 2011 and December 2011 term securitizations were
3.77%, 4.51% and 4.93%, respectively and did not include
financial guaranty policies. These transactions
demonstrate our ability to access the lower cost of funds
available in the current market environment without the
financial guaranties we historically incorporated into our
term securitization structures. We expect to
complete more term securitizations in 2012. In
addition, less competition in the auto financing marketplace
has resulted in better terms for our recent contract
purchases compared to years before 2009. For the
years ended December 31, 2011, 2010 and 2009, the average
acquisition fee we charged per automobile contract purchased
under our CPS programs was $1,155, $1,382 and $1,508,
respectively, or 7.36%, 9.2%, and 11.7%, respectively, of the
amount financed. For the year ended December 31,
2008, the average acquisition fee was $592 and represented
3.9% of the amount financed. Similarly, the
weighted average annual percentage rate of interest payable
by our customers on newly purchased contracts has
increased to 20.07%, 20.05%, and 19.9% in 2011,
2010 and 2009, respectively, compared to 18.5% in
2008.
We
have and will continue to have a substantial amount of
indebtedness. At December 31, 2011, we had approximately
$876.3 million of debt outstanding. Such debt consisted
primarily of $583.1 million of securitization trust debt, and
also included $166.8 million in debt for the acquisition of
the Fireside portfolio, $25.4 million of a warehouse line of
credit, $21.9 million of residual interest financing, $58.3
million of senior secured related party debt and $20.8
million in subordinated notes. We are also
currently offering the subordinated notes to the public on a
continuous basis, and such notes have maturities that range
from three months to 10 years.
As
of December 31, 2011 we have a shareholders’ deficit of
$14.2 million and our recent operating results include net
losses of $14.5 million and $33.2 million in 2011 and 2010,
respectively. We believe that our results have
been materially and adversely affected by the disruption in
the capital markets that began in the fourth quarter of 2007,
by the recession that began in December 2007, and by related
high levels of unemployment. Our ability to repay
or refinance maturing debt may be adversely affected by
prospective lenders’ consideration of our recent
operating losses.
Although
we believe we are able to service and repay our debt, there
is no assurance that we will be able to do so. If our plans
for future operations do not generate sufficient cash flows
and operating profits, our ability to make required payments
on our debt would be impaired. Failure to pay our
indebtedness when due could have a material adverse effect
and may require us to issue additional debt or equity
securities.
|
| X | ||||||||||
|
- Definition
Disclosure of accounting policy for reporting when there is a substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time (generally a year from the balance sheet date). Disclose: (a) pertinent conditions and events giving rise to the assessment of substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time, (b) the possible effects of such conditions and events, (c) management's evaluation of the significance of those conditions and events and any mitigating factors, (d) possible discontinuance of operations, (e) management's plans (including relevant prospective financial information), and (f) information about the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities. If management's plans alleviate the substantial doubt about the entity's ability to continue as a going concern, disclosure of the principal conditions and events that initially raised the substantial doubt about the entity's ability to continue as a going concern would be expected to be considered. Disclose whether operations for the current or prior years generated sufficient cash to cover current obligations, whether waivers were obtained from creditors relating to the company's default under the provisions of debt agreements and possible effects of such conditions and events, such as: whether there is a possible need to obtain additional financing (debt or equity) or to liquidate certain holdings to offset future cash flow deficiencies. Disclose appropriate parent company information when parent is dependent upon remittances from subsidiaries to satisfy its obligations. No definition available.
|