What changed in Enova International, Inc.'s 10-K — 2022 vs 2023
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Paragraph-level year-over-year comparison of Enova International, Inc.'s 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.
+262 added−288 removedSource: 10-K (2024-02-23) vs 10-K (2023-02-24)
Top changes in Enova International, Inc.'s 2023 10-K
262 paragraphs added · 288 removed · 204 edited across 1 sections
- Item 7A. Quantitative and Qualitative Disclosures About Market Risk+262 / −288 · 204 edited
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Market Risk — interest-rate, FX, commodity exposure
204 edited+58 added−84 removed159 unchanged
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Market Risk — interest-rate, FX, commodity exposure
204 edited+58 added−84 removed159 unchanged
2022 filing
2023 filing
Biggest changeTotal Common Stock Paid in Retained Comprehensive Treasury Stock, at cost Stockholders' Noncontrolling Stockholders' Shares Amount Capital Earnings Loss Shares Amount Equity Interest Equity Balance at December 31, 2019 35,765 $ — $ 63,791 $ 372,681 $ ( 3,066 ) ( 2,790 ) $ ( 56,793 ) $ 376,613 $ — $ 376,613 Stock-based compensation expense — — 18,041 — — — — 18,041 — 18,041 Acquisition of OnDeck 5,566 — 105,960 — — — — 105,960 1,321 107,281 Shares issued for vested RSUs 589 — — — — — — — — — Shares issued for stock option exercises 17 — 189 — — — — 189 — 189 Net income attributable to Enova International, Inc. — — — 377,844 — — — 377,844 — 377,844 Foreign currency translation loss, net of tax — — — — ( 3,832 ) — — ( 3,832 ) 80 ( 3,752 ) Purchases of treasury shares, at cost — — — — — ( 3,384 ) ( 56,408 ) ( 56,408 ) — ( 56,408 ) Net income attributable to noncontrolling interest — — — — — — — — 85 85 Cumulative effect of accounting change — — — 98,941 — — — 98,941 — 98,941 Balance at December 31, 2020 41,937 $ — $ 187,981 $ 849,466 $ ( 6,898 ) ( 6,174 ) $ ( 113,201 ) $ 917,348 $ 1,486 $ 918,834 Stock-based compensation expense — — 21,179 — — — — 21,179 — 21,179 Shares issued for vested RSUs 793 — — — — — — — — — Shares issued for stock option exercises 694 — 15,457 — — — — 15,457 — 15,457 Net income attributable to Enova International, Inc. — — — 256,295 — — — 256,295 — 256,295 Foreign currency translation loss, net of tax — — — — ( 1,478 ) — — ( 1,478 ) ( 126 ) ( 1,604 ) Purchases of treasury shares, at cost — — — — — ( 3,106 ) ( 116,657 ) ( 116,657 ) — ( 116,657 ) Net income attributable to noncontrolling interest — — — — — — — — 773 773 Ownership change in noncontrolling interest — — 1,072 — ( 270 ) — — 802 ( 802 ) — OnDeck Australia deconsolidation — — — — 106 — — 106 ( 1,331 ) ( 1,225 ) Balance at December 31, 2021 43,424 $ — $ 225,689 $ 1,105,761 $ ( 8,540 ) ( 9,280 ) $ ( 229,858 ) $ 1,093,052 $ — $ 1,093,052 Stock-based compensation expense — — 21,950 — — — — 21,950 — 21,950 Shares issued for vested RSUs 640 — — — — — — — — — Shares issued for stock option exercises 263 — 4,239 — — — — 4,239 — 4,239 Net income attributable to Enova International, Inc. — — — 207,424 — — — 207,424 — 207,424 Unrealized gain on investments, net of tax — — — — 1,761 — — 1,761 — 1,761 Foreign currency translation gain, net of tax — — — — 789 — — 789 — 789 Purchases of treasury shares, at cost — — — — — ( 3,826 ) ( 143,070 ) ( 143,070 ) — ( 143,070 ) Balance at December 31, 2022 44,327 $ — $ 251,878 $ 1,313,185 $ ( 5,990 ) ( 13,106 ) $ ( 372,928 ) $ 1,186,145 $ — $ 1,186,145 See Notes to Consolidated Financial Statements 69 ENOVA INTERNATIONAL, INC.
Biggest changeTotal Common Stock Paid in Retained Comprehensive Treasury Stock, at cost Stockholders' Noncontrolling Stockholders' Shares Amount Capital Earnings Loss Shares Amount Equity Interest Equity Balance at December 31, 2020 41,937 $ — $ 187,981 $ 849,466 $ ( 6,898 ) ( 6,174 ) $ ( 113,201 ) $ 917,348 $ 1,486 $ 918,834 Stock-based compensation expense — — 21,179 — — — — 21,179 — 21,179 Shares issued for vested RSUs 793 — — — — — — — — — Shares issued for stock option exercises 694 — 15,457 — — — — 15,457 — 15,457 Net income attributable to Enova International, Inc. — — — 256,295 — — — 256,295 — 256,295 Foreign currency translation loss, net of tax — — — — ( 1,478 ) — — ( 1,478 ) ( 126 ) ( 1,604 ) Purchases of treasury shares, at cost — — — — — ( 3,106 ) ( 116,657 ) ( 116,657 ) — ( 116,657 ) Net income attributable to noncontrolling interest — — — — — — — — 773 773 Ownership change in noncontrolling interest — — 1,072 — ( 270 ) — — 802 ( 802 ) — OnDeck Australia deconsolidation — — — — 106 — — 106 ( 1,331 ) ( 1,225 ) Balance at December 31, 2021 43,424 $ — $ 225,689 $ 1,105,761 $ ( 8,540 ) ( 9,280 ) $ ( 229,858 ) $ 1,093,052 $ — $ 1,093,052 Stock-based compensation expense — — 21,950 — — — — 21,950 — 21,950 Shares issued for vested RSUs 640 — — — — — — — — — Shares issued for stock option exercises 263 — 4,239 — — — — 4,239 — 4,239 Net income attributable to Enova International, Inc. — — — 207,424 — — — 207,424 — 207,424 Unrealized gain on investments, net of tax — — — — 1,761 — — 1,761 — 1,761 Foreign currency translation gain, net of tax — — — — 789 — — 789 — 789 Purchases of treasury shares, at cost — — — — — ( 3,826 ) ( 143,070 ) ( 143,070 ) — ( 143,070 ) Balance at December 31, 2022 44,327 $ — $ 251,878 $ 1,313,185 $ ( 5,990 ) ( 13,106 ) $ ( 372,928 ) $ 1,186,145 $ — $ 1,186,145 Stock-based compensation expense — — 26,738 — — — — 26,738 — 26,738 Shares issued for vested RSUs 624 — — — — — — — — — Shares issued for stock option exercises 389 — 5,640 — — — — 5,640 — 5,640 Net income attributable to Enova International, Inc. — — — 175,121 — — — 175,121 — 175,121 Unrealized loss on investments, net of tax — — — — ( 2,253 ) — — ( 2,253 ) — ( 2,253 ) Foreign currency translation gain, net of tax — — — — 1,979 — — 1,979 — 1,979 Purchases of treasury shares, at cost — — — — — ( 3,145 ) ( 153,187 ) ( 153,187 ) — ( 153,187 ) Balance at December 31, 2023 45,340 $ — $ 284,256 $ 1,488,306 $ ( 6,264 ) ( 16,251 ) $ ( 526,115 ) $ 1,240,183 $ — $ 1,240,183 See Notes to Consolidated Financial Statements 71 ENOVA INTERNATIONAL, INC.
The Company has issued a limited indemnity to the lenders for certain “bad acts,” and the Company has agreed for the benefit of the lenders to meet certain ongoing financial performance covenants.
The Company has issued a limited indemnity to the lenders for certain “bad acts,” and the Company has agreed for the benefit of the lenders to meet certain ongoing financial performance covenants.
Through the acquisition of Pangea, which is described in more detail in Note 2 to the consolidated financial statements, the Company now operates a money transfer platform that allows customers to send money from the United States to Mexico, other Latin American countries and Asia. Revenue is generated through fees per transfer and an exchange rate spread.
Through the acquisition of Pangea in 2021, which is described in more detail in Note 2 to the consolidated financial statements, the Company now operates a money transfer platform that allows customers to send money from the United States to Mexico, other Latin American countries and Asia. Revenue is generated through fees per transfer and an exchange rate spread.
With the acquisition of OnDeck, the Company owned a 55 % controlling interest in On Deck Capital Australia PTY LTD (“OnDeck Australia”). The remaining interests were owned by an unrelated third party. Prior to December 2021, we consolidated the financial position and results of operations of this entity under the voting interest model.
With the acquisition of OnDeck in 2020, the Company owned a 55 % controlling interest in On Deck Capital Australia PTY LTD (“OnDeck Australia”). The remaining interests were owned by an unrelated third party. Prior to December 2021, we consolidated the financial position and results of operations of this entity under the voting interest model.
The notes have a revolving period through October 21, 2024 and a final maturity date of October 21, 2026 . The NCR 2022 Securitization Facility is non-recourse to the Company. As of December 31, 2022 , the total outstanding amount of the NCR 2022 Securitization Facility was $ 44.0 million.
The notes have a revolving period through October 21, 2024 and a final maturity date of October 21, 2026 . The NCR 2022 Securitization Facility is non-recourse to the Company. As of December 31, 2023 and 2022 , the total outstanding amount of the NCR 2022 Securitization Facility was $ 44.0 million.
It does not include the impact of the amortization of deferred loan origination costs or debt discounts. (2) The period during which new borrowings may be made under this facility expires in March 2025. (3) The period during which new borrowings may be made under this facility expires in July 2023.
It does not include the impact of the amortization of deferred loan origination costs or debt discounts. (2) The period during which new borrowings may be made under this facility expires in March 2025. (3) The period during which new borrowings may be made under this facility expired in July 2023.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 62 Critical Audit Matter The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 65 Critical Audit Matter The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.
The Company has established a tax-effected valuation allowance of $ 0.7 million as of December 31, 2022 , against the net operating losses that will expire prior to their utilization. Following the acquisition of OnDeck, the Company is subject to a Section 382 limitation associated with the built-in losses and other attributes of the acquired OnDeck assets.
The Company has established a tax-effected valuation allowance of $ 0.7 million as of December 31, 2023 , against the net operating losses that will expire prior to their utilization. Following the acquisition of OnDeck, the Company is subject to a Section 382 limitation associated with the built-in losses and other attributes of the acquired OnDeck assets.
Changes in Internal Control over Financial Reporting There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended December 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. I TEM 9B.
Changes in Internal Control over Financial Reporting There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended December 31, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. I TEM 9B.
The financial information included herein may not be indicative of the consolidated financial position, operating results, changes in stockholders’ equity and cash flows of the Company in the future. Intercompany transactions are eliminated. Certain prior year amounts have been reclassified to conform to current year presentation. 71 ENOVA INTERNATIONAL, INC.
The financial information included herein may not be indicative of the consolidated financial position, operating results, changes in stockholders’ equity and cash flows of the Company in the future. Intercompany transactions are eliminated. Certain prior year amounts have been reclassified to conform to current year presentation. 73 ENOVA INTERNATIONAL, INC.
ODR 2022-1 Securitization Facility On June 30, 2022 (the “ODR 2022-1 Closing Date”), the Company and several of its subsidiaries entered into a receivables securitization (the “ODR 2022-1 Securitization Facility”) with lenders party thereto from time to time, BMO Capital Markets Corp. as administrative agent and collateral agent and Deutsche Bank Trust Company Americas, as paying agent.
ODR 2022-1 Securitization Facility On June 30, 2022, the Company and several of its subsidiaries entered into a receivables securitization (the “ODR 2022-1 Securitization Facility”) with lenders party thereto from time to time, BMO Capital Markets Corp. as administrative agent and collateral agent and Deutsche Bank Trust Company Americas, as paying agent.
Operating Segment Information During the three years ended December 31, 2022 , the Company primarily provided online financial services to non-prime credit consumers and small businesses in the United States, Australia and Brazil. The Company has one reportable segment, which is composed of the Company’s domestic and international operations and corporate services.
Operating Segment Information During the three years ended December 31, 2023 , the Company primarily provided online financial services to non-prime credit consumers and small businesses in the United States, Australia and Brazil. The Company has one reportable segment, which is composed of the Company’s domestic and international operations and corporate services.
ODR 2021-1 Securitization Facility On November 17, 2021 (the “ODR 2021-1 Closing Date”), the Company and several of its subsidiaries entered into a receivables securitization (the “ODR 2021-1 Securitization Facility”) with the lenders party thereto from time to time, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, and Deutsche Bank Trust Company Americas, as paying agent.
ODR 2021-1 Securitization Facility On November 17, 2021, the Company and several of its subsidiaries entered into a receivables securitization (the “ODR 2021-1 Securitization Facility”) with the lenders party thereto from time to time, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, and Deutsche Bank Trust Company Americas, as paying agent.
The Credit Agreement contains certain prepayment penalties if it is terminated on or before the first and second anniversary dates, subject to certain exceptions. The loans mature on June 30, 2026 . The Company had outstanding letters of credit under the Credit Agreement of $ 0.8 million as of December 31, 2022 and 2021.
The Credit Agreement contains certain prepayment penalties if it is terminated on or before the first and second anniversary dates, subject to certain exceptions. The loans mature on June 30, 2026 . The Company had outstanding letters of credit under the Credit Agreement of $ 0.8 million as of December 31, 2023 and 2022.
A decrease of 100 basis points to the discount rates used in our valuations would increase the balance of Loans and finance receivables at fair value by approximately 0.7% at December 31, 2022 and 2021. Expectations of future credit losses are a significant input to the valuation of our loans and finance receivables.
A decrease of 100 basis points to the discount rates used in our valuations would increase the balance of loans and finance receivables at fair value by approximately 0.7% at December 31, 2023 and 2022. Expectations of future credit losses are a significant input to the valuation of our loans and finance receivables.
CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures Under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, our management has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of December 31, 2022 (the “Evaluation Date”).
CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures Under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, our management has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of December 31, 2023 (the “Evaluation Date”).
Under the CSO programs, the Company guarantees consumer loan payment obligations to the third-party lender in the event that the customer defaults on the loan, at which point, the loan is purchased by the Company. Prior to any potential purchase, CSO loans are not included in the Company’s consolidated balance sheets.
Under the CSO program, the Company guarantees consumer loan payment obligations to the third-party lender in the event that the customer defaults on the loan, at which point, the loan is purchased by the Company. Prior to any potential purchase, CSO loans are not included in the Company’s consolidated balance sheets.
Interest payments on the ODR 2022-1 Securitization Facility will be made monthly. All amounts due under the ODR 2022-1 Securitization Facility are secured by all of the ODR 2022-1 Debtor’s assets, which include the eligible securitization receivables transferred to the ODR 2022-1 Debtor, related rights under the eligible securitization receivables, a bank account and certain other related collateral.
Interest payments on the ODR 2022-1 Securitization Facility are made monthly. All amounts due under the ODR 2022-1 Securitization Facility are secured by all of the ODR 2022-1 Debtor’s assets, which include the eligible securitization receivables transferred to the ODR 2022-1 Debtor, related rights under the eligible securitization receivables, a bank account and certain other related collateral.
Restricted Stock Units During the years ended December 31, 2022, 2021 and 2020 , the Company granted RSUs to Company officers, certain employees and to the non-management members of the Board of Directors under the Enova LTIP. Each vested RSU entitles the holder to receive a share of the common stock of the Company.
Restricted Stock Units During the years ended December 31, 2023, 2022 and 2021 , the Company granted RSUs to Company officers, certain employees and to the non-management members of the Board of Directors under the Enova LTIP. Each vested RSU entitles the holder to receive a share of the common stock of the Company.
The Company has recorded a full valuation allowance related to the Brazilian net operating loss carryforwards, as they are not more likely than not to be utilized. As of December 31, 2022, we currently have insignificant accumulated earnings in foreign jurisdictions.
The Company has recorded a full valuation allowance related to the Brazilian net operating loss carryforwards, as they are not more likely than not to be utilized. As of December 31, 2023, we currently have insignificant accumulated earnings in foreign jurisdictions.
During the years ended December 31, 2022 and 2021 , there were no transfers of assets or liabilities between Level 1, 2 or 3. It is the Company’s policy to value any transfers between levels of the fair value hierarchy based on end of period values.
During the years ended December 31, 2023 and 2022 , there were no transfers of assets or liabilities between Level 1, 2 or 3. It is the Company’s policy to value any transfers between levels of the fair value hierarchy based on end of period values.
The effectiveness of our internal control over financial reporting as of December 31, 2022 has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report which appears in this Form 10-K.
The effectiveness of our internal control over financial reporting as of December 31, 2023 has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report which appears in this Form 10-K.
Loan Securitization Facilities NCR 2022 Securitization Facility On October 21, 2022, the Company and several of its subsidiaries entered into a receivables funding agreement (the “NCR 2022 Securitization Facility”) with Jefferies Funding LLC, as the initial note purchaser and administrative agent (the “NCR 2022 Administrative Agent”).
NCR 2022 Securitization Facility On October 21, 2022, the Company and several of its subsidiaries entered into a receivables funding agreement (the “NCR 2022 Securitization Facility”) with Jefferies Funding LLC, as the initial note purchaser and administrative agent (the “NCR 2022 Administrative Agent”).
Based on our evaluation under the framework in “Internal Control — Integrated Framework” (2013), management, with the participation of our Chief Executive Officer and Chief Financial Officer, concluded that our internal control over financial reporting was effective as of December 31, 2022.
Based on our evaluation under the framework in “Internal Control — Integrated Framework” (2013), management, with the participation of our Chief Executive Officer and Chief Financial Officer, concluded that our internal control over financial reporting was effective as of December 31, 2023.
An increase of 100 basis points to the discount rates used in our valuations would decrease the balance of loans and finance receivables at fair value by approximately 0.7% at December 31, 2022 and 2021.
An increase of 100 basis points to the discount rates used in our valuations would decrease the balance of loans and finance receivables at fair value by approximately 0.7% at December 31, 2023 and 2022.
We also have audited the Company’s internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
We also have audited the Company’s internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Leases The Company has operating leases primarily for its corporate headquarters, other offices located in the U.S. and certain equipment. The Company’s leases have remaining lease terms of less than one year to six years .
Leases The Company has operating leases primarily for its corporate headquarters, other offices located in the U.S. and certain equipment. The Company’s leases have remaining lease terms of less than one year to eleven years .
Commitments and Contingencies Guarantees of Consumer Loans In connection with its CSO programs, the Company guarantees consumer loan payment obligations to unrelated third-party lenders for consumer loans and is required to purchase any defaulted loans it has guaranteed.
Commitments and Contingencies Guarantees of Consumer Loans In connection with its CSO program, the Company guarantees consumer loan payment obligations to unrelated third-party lenders for consumer loans and is required to purchase any defaulted loans it has guaranteed.
Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
Restricted stock units issued under the Company’s stock-based employee compensation plans are included in diluted shares upon the granting of the awards even though the vesting of shares will occur over time. 76 ENOVA INTERNATIONAL, INC.
Restricted stock units issued under the Company’s stock-based employee compensation plans are included in diluted shares upon the granting of the awards even though the vesting of shares will occur over time. 77 ENOVA INTERNATIONAL, INC.
The 2025 Senior Notes were sold to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and outside the United States pursuant to Regulation S under the Securities Act.
The 2024 Senior Notes were sold to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and outside the United States pursuant to Regulation S under the Securities Act.
In addition, the 2018-2 Debtor paid certain customary upfront closing fees to the 2018-2 Agent. Interest payments on the 2018-2 Securitization Facility will be made monthly . The 2018-2 Debtor shall be permitted to prepay the 2018-2 Securitization Facility, subject to certain fees and conditions.
In addition, the 2018-2 Debtor paid certain customary upfront closing fees to the 2018-2 Agent. Interest payments on the 2018-2 Securitization Facility are made monthly . The 2018-2 Debtor shall be permitted to prepay the 2018-2 Securitization Facility, subject to certain fees and conditions.
Decreasing our estimates for future credit losses used in our valuations to 90% of current expectations would increase the balance of loans and finance receivables at fair value by approximately 3.3% and 4.0% at December 31, 2022 and 2021, respectively. The expected rate of future customer prepayments can also impact the fair value of our loans and finance receivables.
Decreasing our estimates for future credit losses used in our valuations to 90% of current expectations would increase the balance of loans and finance receivables at fair value by approximately 3.0% and 3.3% at December 31, 2023 and 2022, respectively. The expected rate of future customer prepayments can also impact the fair value of our loans and finance receivables.
Services offered under the CSO programs include credit-related services such as arranging loans with independent third-party lenders and assisting in the preparation of loan applications and loan documents (“CSO loans”).
Services offered under the CSO program include credit-related services such as arranging loans with independent third-party lenders and assisting in the preparation of loan applications and loan documents (“CSO loans”).
Investments in Unconsolidated Investees In December 2021, the Company sold a portion of its interest in OnDeck Australia, recognizing a loss of $ 0.8 million that has been included in "Other nonoperating expense." Prior to this, the Company had consolidated the financial position and results of operations of OnDeck Australia under the voting interest model.
Investments in Unconsolidated Investees In December 2021, the Company sold a portion of its interest in OnDeck Australia, recognizing a loss of $ 0.8 million that was included in "Other nonoperating expense." Prior to this, the Company had consolidated the financial position and results of operations of OnDeck Australia under the voting interest model.
The Company has gross foreign net operating loss carryforwards from Brazilian operations of $ 22.0 million, $ 19.3 million and $ 19.5 million as of December 31, 2022, 2021 and 2020, respectively. These net operating loss carryforwards are subject to annual limitations and have an unlimited carryforward period.
The Company has gross foreign net operating loss carryforwards from Brazilian operations of $ 29.5 million, $ 22.0 million and $ 19.3 million as of December 31, 2023, 2022 and 2021, respectively. These net operating loss carryforwards are subject to annual limitations and have an unlimited carryforward period.
As of December 31, 2022, the Company offered or arranged loans to consumers under the names “CashNetUSA” and “NetCredit” in 37 states in the United States and under the name “Simplic” in Brazil.
As of December 31, 2023, the Company offered or arranged loans to consumers under the names “CashNetUSA” and “NetCredit” in 37 states in the United States and under the name “Simplic” in Brazil.
RPAs represent a right to receive future receivables from a small business. Small businesses receive funds in exchange for a portion of the business’ future receivables at an agreed upon discount. In contrast, lending is a commitment to repay principal and interest. “Loans and finance receivables” include consumer loans, small business loans and RPAs.
Small businesses receive funds in exchange for a portion of the business’ future receivables at an agreed upon discount. In contrast, lending is a commitment to repay principal and interest. “Loans and finance receivables” include consumer loans, small business loans and RPAs.
The Company classifies the inputs used to measure fair value into one of three levels as follows: • Level 1: Quoted prices in active markets for identical assets or liabilities. • Level 2: Inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable. • Level 3: Unobservable inputs for the asset or liability measured. 98 ENOVA INTERNATIONAL, INC.
The Company classifies the inputs used to measure fair value into one of three levels as follows: • Level 1: Quoted prices in active markets for identical assets or liabilities. • Level 2: Inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable. • Level 3: Unobservable inputs for the asset or liability measured.
In addition, prior to September 15, 2021, at its option, the Company may redeem up to 40 % of the aggregate principal amount of the 2025 Senior Notes at a redemption price of 108.5 % of the aggregate principal amount of 2025 Senior Notes redeemed, plus accrued and unpaid interest, if any, to the redemption date, with the proceeds of certain equity offerings as described in the 2025 Senior Notes Indenture. 85 ENOVA INTERNATIONAL, INC.
In addition, prior to September 15, 2021, at its option, the Company may redeem up to 40 % of the aggregate principal amount of the 2025 Senior Notes at a redemption price of 108.5 % of the aggregate principal amount of 2025 Senior Notes redeemed, plus accrued and unpaid interest, if any, to the redemption date, with the proceeds of certain equity offerings as described in the 2025 Senior Notes Indenture.
Increasing our estimates for future credit losses used in our valuations to 110% of current expectations would decrease the balance of loans and finance receivables at fair value by approximately 3.2% and 4.1% at December 31, 2022 and 2021, respectively. Conversely, credit losses may decrease as the economy strengthens or with increased government assistance.
Increasing our estimates for future credit losses used in our valuations to 110% of current expectations would decrease the balance of loans and finance receivables at fair value by approximately 3.2% and 3.3% at December 31, 2023 and 2022, respectively. Conversely, credit losses may decrease as the economy strengthens or with increased government assistance.
See Notes to Consolidated Financial Statements 68 ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES C ONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (in thousands) Total Enova Accumulated International, Additional Other Inc.
See Notes to Consolidated Financial Statements 70 ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES C ONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (in thousands) Total Enova Accumulated International, Additional Other Inc.
(2) The non-qualified savings plan assets are included in “Other receivables and prepaid expenses” in the Company’s consolidated balance sheets and have an offsetting liability of equal amount, which is included in “Accounts payable and accrued expenses” in the Company’s consolidated balance sheets. (3) Investment in trading security is included in “Other assets” in the Company’s consolidated balance sheets.
(2) The non-qualified savings plan assets are included in “Other receivables and prepaid expenses” in the Company’s consolidated balance sheets and have an offsetting liability, which is included in “Accounts payable and accrued expenses” in the Company’s consolidated balance sheets. (3) Investment in trading security is included in “Other assets” in the Company’s consolidated balance sheets.
The Company recorded compensation expense for combined contributions to these three plans of $ 2.7 million, $ 3.6 million and $ 3.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company also sponsors the Enova International, Inc. Supplemental Executive Retirement Plan (“SERP”) in which certain officers and certain other employees of the Company participate.
The Company recorded compensation expense for combined contributions to these three plans of $ 4.1 million, $ 2.7 million and $ 3.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. The Company also sponsors the Enova International, Inc. Supplemental Executive Retirement Plan (“SERP”) in which certain officers and certain other employees of the Company participate.
Depreciation expense is generally provided on a straight-line basis, using the following estimated useful lives: Computer hardware and software 3 to 5 years Furniture, fixtures and equipment 3 to 7 years Leasehold improvements (1) 3 to 10 years (1) Leasehold improvements are depreciated over the lesser of the estimated useful life, remaining lease term, or 10 years.
Depreciation expense is generally provided on a straight-line basis, using the following estimated useful lives: Computer hardware and software 3 to 5 years Furniture, fixtures and equipment 3 to 7 years Leasehold improvements (1) 3 to 10 years (1) Leasehold improvements are depreciated over the lesser of the estimated useful life, remaining lease term, or 10 years. 75 ENOVA INTERNATIONAL, INC.
(4) The period during which new borrowings may be made under this facility expires in October 2024. (5) The period during which new borrowings may be made under this facility expires in November 2023. (6) The period during which new borrowings may be made under this facility expires in June 2024.
(4) The period during which new borrowings may be made under this facility expires in October 2024. (5) The period during which new borrowings may be made under this facility expires in November 2025. (6) The period during which new borrowings may be made under this facility expires in June 2024.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2022 and 2021, in conformity with accounting principles generally accepted in the United States of America.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.
As discussed in Note 1 in the Notes to Consolidated Financial Statements, in December 2021, the Company divested a portion of its interest in OnDeck Australia and began recording its remaining interest utilizing the equity method of accounting.
Related Party Transactions As discussed in Note 1 in the Notes to Consolidated Financial Statements, in December 2021, the Company divested a portion of its interest in OnDeck Australia and began recording its remaining interest utilizing the equity method of accounting.
(2) Included in “Change in Fair Value” in the consolidated statements of income. In connection with its CSO programs, the Company guarantees consumer loan payment obligations to unrelated third-party lenders for consumer loans and is required to purchase any defaulted loans it has guaranteed.
(2) Included in “Revenue” in the consolidated statements of income. (3) Included in “Change in Fair Value” in the consolidated statements of income. In connection with its CSO program, the Company guarantees consumer loan payment obligations to unrelated third-party lenders for consumer loans and is required to purchase any defaulted loans it has guaranteed.
We identified loans and finance receivables at fair value as a critical audit matter because of the subjective process in determining significant inputs and judgments used to estimate the fair value.
We identified the valuation assertion relating to loans and finance receivables at fair value as a critical audit matter because of the subjective process in determining significant inputs and judgments used to estimate the fair value.
Compensation expense related to stock options totaling $ 4.1 million ($ 3.1 million net of related taxes), $ 3.2 million ($ 2.4 million net of related taxes) and $ 4.3 million ($ 3.2 million net of related taxes) was recognized for the years ended December 31, 2022, 2021 and 2020, respectively.
Compensation expense related to stock options totaling $ 4.6 million ($ 3.4 million net of related taxes), $ 4.1 million ($ 3.1 million net of related taxes) and $ 3.2 million ($ 2.4 million net of related taxes) was recognized for the years ended December 31, 2023, 2022 and 2021, respectively.
At December 31, 2022 and 2021 , there were no assets or liabilities recorded at fair value on a nonrecurring basis.
At December 31, 2023 and 2022 , there were no assets or liabilities recorded at fair value on a nonrecurring basis.
The Credit Agreement also contains environmental, social, and governance provisions allowing amendment of the Credit Agreement to reflect subsequently agreed upon key performance indicators with respect to sustainability targets, achievement of which would result in adjustments to the commitment fee and applicable margins.
The Credit Agreement also contains environmental, social, and governance provisions allowing amendment of the Credit Agreement to reflect subsequently agreed upon key performance indicators with respect to sustainability targets, achievement of which would result in adjustments to the commitment fee and applicable margins. 91 ENOVA INTERNATIONAL, INC.
Increasing our estimates for future prepayments used in our valuations to 110% of current expectations would decrease the balance of Loans and finance receivables at fair value by 0.9% and 1.2% at December 31, 2022 and 2021, respectively. Conversely, prepayment speeds may decrease as the economy weakens or inflation increases.
Increasing our estimates for future prepayments used in our valuations to 110% of current expectations would decrease the balance of loans and finance receivables at fair value by 0.8% and 1.0% at December 31, 2023 and 2022, respectively. Conversely, prepayment speeds may decrease as the economy weakens or inflation increases.
Installment loans are loans written by the Company, by a third-party lender through the Company’s credit services organization and credit access business programs (“CSO programs” as further described below) that the Company guarantees or by a bank partner. Installment loans includes longer-term loans that require the outstanding principal balance to be paid down in multiple installments.
Installment loans are loans written by the Company, by a third-party lender through the Company’s credit services organization or credit access business program (“CSO program” as further described below) that the Company guarantees or by a bank partner. Installment loans includes longer-term loans that require the outstanding principal balance to be paid down in multiple installments.
The Company operates programs with certain banks to provide marketing services and loan servicing for near-prime unsecured consumer installment loans and, beginning in January 2021, line of credit accounts. Under the programs, the Company receives marketing and servicing fees while the bank receives an origination fee.
The Company operates programs with certain banks to provide marketing services and loan servicing for near-prime unsecured consumer installment loans and line of credit accounts. Under the programs, the Company receives marketing and servicing fees while the bank receives an origination fee.
The Company has gross state net operating loss carryforwards of $ 341.6 million, $ 59.7 million and $ 35.2 million as of December 31, 2022, 2021 and 2020 , respectively, that, if unused, will expire between calendar years 2023 and 2042 .
The Company has gross state net operating loss carryforwards of $ 178.6 million, $ 341.6 million and $ 59.7 million as of December 31, 2023, 2022 and 2021 , respectively, that, if unused, will expire between calendar years 2023 and 2042 .
Line of credit accounts include draws made through the Company’s line of credit products. Through the Company’s CSO programs, the Company provides services related to a third-party lender’s consumer loan products in some markets by acting as a credit services organization or credit access business on behalf of consumers in accordance with applicable state laws.
Line of credit accounts include draws made through the Company’s line of credit products. Through the Company’s CSO program, the Company provides services related to a third-party lender’s consumer loan products in Texas by acting as a credit services organization or credit access business on behalf of consumers in accordance with applicable state laws.
The Company measures the fair value of its investment in unconsolidated investee using Level 3 inputs. Because the unconsolidated investee is a private company and financial information is limited, the Company estimates the fair value based on the best available information at the measurement date.
The Company measures the fair value of its investment in unconsolidated investee using Level 3 inputs. Because the unconsolidated investee is a private company and financial information is limited, the Company estimates the fair value based on the best available information at the measurement date. 100 ENOVA INTERNATIONAL, INC.
The liability for unrecognized tax benefits as of December 31, 2022 and 2021 includes $ 3.7 million and $ 3.5 million, respectively, for accrued interest and penalties related to unrecognized tax benefits.
The liability for unrecognized tax benefits as of December 31, 2023 and 2022 includes $ 5.6 million and $ 3.7 million, respectively, for accrued interest and penalties related to unrecognized tax benefits.
For the years ended December 31, 2022 and 2021 , there were no shares and for the year ended December 31, 2020 , there were 627,804 shares of common stock underlying restricted stock units that were excluded from the calculation of diluted net earnings per share because their effect would have been antidilutive. 2 .
For the year ended December 31, 2023 , there were 235,237 shares, for the year ended December 31, 2022 , there were no shares and for the year ended December 31, 2021 , there were 627,804 shares of common stock underlying restricted stock units that were excluded from the calculation of diluted net earnings per share because their effect would have been antidilutive. 2 .
As of December 31, 2022 and 2021 the amount of consumer loans, including principal, fees and interest, guaranteed by the Company were $ 15.6 million and $ 13.8 million, respectively. These loans are not included in the consolidated balance sheets as the Company does not own the loans prior to default. 4.
As of December 31, 2023 and 2022 the amount of consumer loans, including principal, fees and interest, guaranteed by the Company were $ 16.4 million and $ 15.6 million, respectively. These loans are not included in the consolidated balance sheets as the Company does not own the loans prior to default. 4.
The Company recorded compensation expense of $ 0.8 million, $ 0.7 million and $ 0.6 million for SERP contributions for the years ended December 31, 2022, 2021 and 2020, respectively. The NQSP and the SERP are non-qualified, unfunded, deferred compensation plans for which the Company holds securities in rabbi trusts to pay benefits.
The Company recorded compensation expense of $ 0.5 million, $ 0.8 million and $ 0.7 million for SERP contributions for the years ended December 31, 2023, 2022 and 2021, respectively. The NQSP and the SERP are non-qualified deferred compensation plans for which the Company holds securities in rabbi trusts to pay benefits.
Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of Enova International, Inc. and subsidiaries (the "Company") as of December 31, 2022 and 2021, the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows, for each of the two years in the period ended December 31, 2022, and the related notes (collectively referred to as the "financial statements").
Opinion on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of Enova International, Inc. and subsidiaries (the "Company") as of December 31, 2023 and 2022, the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows, for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the "financial statements").
The 2023-A Notes will be offered only to “qualified institutional buyers” pursuant to Rule 144A under the Securities Act and to certain persons outside of the United States in compliance with Regulation S under the Securities Act.
The 2023-A Notes were offered and sold only to “qualified institutional buyers” pursuant to Rule 144A under the Securities Act and to certain persons outside of the United States in compliance with Regulation S under the Securities Act.
In 2022, the Company recognized a gain of $ 11.0 million related to the sale by Linear of its operating company. As of December 31, 2022 and 2021 , the carrying value of the Company’s investment in Linear was $ 18.3 million and $ 5.6 million, respectively, which the Company has included in “Other assets” on the consolidated balance sheets.
In 2022, the Company recognized a gain of $ 11.0 million related to the sale by Linear of its operating company. As of December 31, 2023 and 2022 , the carrying value of the Company’s investment in Linear was $ 16.1 million and $ 18.3 million, respectively, which the Company has included in “Other assets” on the consolidated balance sheets.
AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The 2025 Senior Notes and the related guarantees have not been and will not be registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities or blue sky laws and foreign securities laws.
The 2025 Senior Notes and the related guarantees have not been and will not be registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities or blue sky laws and foreign securities laws.
The 2024 Senior Notes bear interest at a rate of 8.50 % annually on the principal amount payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2018. The 2024 Senior Notes were sold at a price of 100 %. The 2024 Senior Notes will mature on September 1, 2024 .
The 2024 Senior Notes bear interest at a rate of 8.50 % annually on the principal amount payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2018. The 2024 Senior Notes were sold at a price of 100 % with a maturity date of September 1, 2024.
The NCR 2022 Securitization Facility bears interest at a rate per annum equal to the Secured Overnight Financing Rate (“SOFR”) (subject to a floor) plus 4.75 %. Interest payments on the NCR 2022 Securitization Facility are made monthly. The NCR 2022 Debtor is permitted to prepay the NCR 2022 Securitization Facility, subject to certain fees and conditions.
The NCR 2022 Securitization Facility bears interest at a rate per annum equal to the SOFR (subject to a floor) plus 4.75 %. Interest payments on the NCR 2022 Securitization Facility are made monthly. The NCR 2022 Debtor is permitted to prepay the NCR 2022 Securitization Facility, subject to certain fees and conditions.
On March 14, 2022 the 2018-2 Securitization facility was amended to, among other changes, increase the commitment amount from $ 150.0 million to $ 225.0 million. As of December 31, 2022 and 2021 , the outstanding amount of the 2018-2 Securitization Facility was $ 179.7 million and $ 75.0 million, respectively.
On March 14, 2022 the 2018-2 Securitization facility was amended to, among other changes, increase the commitment amount from $ 150.0 million to $ 225.0 million. As of December 31, 2023 and 2022 , the outstanding amount of the 2018-2 Securitization Facility was $ 66.1 million and $ 179.7 million, respectively.
The ODR 2021-1 Securitization Facility is governed by a credit agreement, dated as of the ODR 2021-1 Closing Date, and amended on March 29, 2022 and November 18, 2022, among the ODR 2021-1 Debtor, the administrative and collateral agent, the lenders, and the paying agent.
The ODR 2021-1 Securitization Facility is governed by a credit agreement, dated as of November 17, 2021, and amended on March 29, 2022, November 18, 2022 and November 15, 2023, among the ODR 2021-1 Debtor, the administrative and collateral agent, the lenders, and the paying agent.
The 2018‑1 Facility documents contain customary provisions for securitizations, including: representations and warranties as to the eligibility of the Securitization Receivables and other matters; indemnification for specified losses not including losses due to the inability of consumers to repay their loans; covenants regarding special purpose entity matters; and default and termination provisions which provide for the acceleration of the 2018‑1 Facility in circumstances including, but not limited to, failure to make payments when due, servicer defaults, certain insolvency events, breaches of representations, warranties or covenants, failure to maintain the security interest in the receivables and defaults under other material indebtedness of the 2018‑1 Debtor.
The HWCR 2023 Securitization Facility documents contain customary provisions for securitizations, including representations and warranties as to the eligibility of the eligible securitization receivables and other matters; indemnification for specified losses not including losses due to the inability of customers to repay their loans or lines of credit; covenants regarding special purpose entity matters; and default and termination provisions which provide for the acceleration of the HWCR 2023 Securitization Facility in circumstances including, but not limited to, failure to make payments when due, certain insolvency events, breaches of representations, warranties or covenants, failure to maintain the security interest in the eligible securitization receivables, and defaults under other material indebtedness of the HWCR 2023 Debtor.
These securities are classified as trading securities, and the unrealized gains and losses on these securities are netted with the costs of the plans in “General and administrative expenses” in the consolidated statements of income.
These securities are classified as trading securities, and the unrealized gains and losses on these securities are netted with the costs of the plans in “General and administrative expenses” in the consolidated statements of income. 95 ENOVA INTERNATIONAL, INC.
For the year ended December 31, 2022 , the Company estimated the fair value of the stock option grants using the Black-Scholes option-pricing model based on the following weighted average assumptions: risk-free interest rate of 3.0 %, expected term (life) of options of 4.5 years, expected volatility of 59.1 % and no expected dividends.
For the year ended December 31, 2023 , the Company estimated the fair value of the stock option grants using the Black-Scholes option-pricing model based on the following weighted average assumptions: risk-free interest rate of 4.1 %, expected term (life) of options of 4.5 years, expected volatility of 58.9 % and no expected dividends.
Decreasing our estimates for future prepayments used in our valuations to 90% of current expectations would increase the balance of Loans and finance receivables at fair value by 0.8% and 1.2% at December 31, 2022 and 2021, respectively. 60 I TEM 8.
Decreasing our estimates for future 62 prepayments used in our valuations to 90% of current expectations would increase the balance of loans and finance receivables at fair value by 0.8% and 1.0% at December 31, 2023 and 2022, respectively. 63 I TEM 8.
The aggregate unpaid principal balance for loans and finance receivables that are 90 days or more past due was $ 17.9 million and $ 12.4 million, respectively.
The aggregate unpaid principal balance for loans and finance receivables that are 90 days or more past due was $ 43.6 million and $ 17.9 million, respectively.
AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company’s market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability may fall into different levels of the fair value hierarchy.
Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company’s market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability may fall into different levels of the fair value hierarchy.
AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Fair Value Measurements on a Non-Recurring Basis The Company measures non-financial assets and liabilities such as property and equipment and intangible assets at fair value on a nonrecurring basis or when events or circumstances indicate that the carrying amount of the assets may be impaired.
Fair Value Measurements on a Non-Recurring Basis The Company measures non-financial assets and liabilities such as property and equipment and intangible assets at fair value on a nonrecurring basis or when events or circumstances indicate that the carrying amount of the assets may be impaired.
The operating results of Pangea, which were not material, have been included in the Company’s consolidated financial statements from the date of acquisition. Its revenues and cost of revenues are included in “Revenues” and “Change in Fair Value,” respectively, in the Consolidated Statements of Income.
The operating results of Pangea have been included in the Company’s consolidated financial statements from the date of acquisition. Its revenues and cost of revenues are included in “Revenues” and “Change in Fair Value,” respectively, in the Consolidated Statements of Income. 3 .
The Class A commitment amount and advance rate remained the same at $ 200.0 million and 76 %, respectively. As of December 31, 2022 and 2021 , the carrying amount of the RAOD Securitization Facility was $ 230.3 million and $ 101.0 million, respectively.
The Class A commitment amount and advance rate remained the same at $ 200.0 million and 76 %, respectively. As of December 31, 2023 and 2022 , the carrying amount of the RAOD Securitization Facility was $ 142.1 million and $ 230.3 million, respectively.
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