Variable Interest Entities (Tables)

9 Months Ended

Oct. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of assets and liabilities held by the VIE

The following table presents the assets and liabilities held by the VIEs (for legal purposes, the assets and liabilities of the VIEs will remain distinct from Conn’s, Inc.):


(in thousands)	October 31, 2022		January 31, 2022
Assets:
Restricted cash	$	43,394	$	29,872
Due from Conn’s, Inc., net	964		—
Customer accounts receivable:
Customer accounts receivable	652,778		463,411
Restructured accounts	37,270		29,621
Allowance for uncollectible accounts	(131,724)		(97,560)
Allowance for no-interest option credit programs	(13,670)		(10,275)
Deferred fees and origination costs	(6,788)		(5,033)
Total customer accounts receivable, net	537,866		380,164
Total assets	$	582,224	$	410,036
Liabilities:
Accrued expenses	$	4,194	$	2,638
Other liabilities	5,754		3,930
Due to Conn’s, Inc., net	—		12,755

Long-term debt:
2020-A Class A Notes	—		9,184
2020-A Class B Notes	—		18,342
2020-A Class C Notes	—		17,695
2021-A Class A Notes	24,287		195,595
2021-A Class B Notes	66,090		66,090
2021-A Class C Notes	63,890		63,890
2022-A Class A Notes	191,174		—
2022-A Class B Notes	132,090		—
	477,531		370,796
Less: deferred debt issuance costs	(4,375)		(2,871)
Total debt	473,156		367,925
Total liabilities	$	483,104	$	387,248

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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