Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company conducts business primarily through two reportable segments: portfolio purchasing and recovery and tax lien business. The Company’s management relies on internal management reporting processes that provide segment revenue, segment operating income, and segment asset information in order to make financial decisions and allocate resources. The operating results from the Company’s tax lien business segment are immaterial to the Company’s total consolidated operating results. However, total assets from the tax lien business segment are significant as compared to the Company’s total consolidated assets. As a result, in accordance with authoritative guidance on segment reporting, the Company’s tax lien business segment is determined to be a reportable segment.

Segment operating income includes income from operations before depreciation, amortization of intangible assets, and stock-based compensation expense. The following table provides a reconciliation of revenue and segment operating income by reportable segment to consolidated results and was derived from the segments’ internal financial information as used for corporate management purposes (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Revenues:
Portfolio purchasing and recovery	$	264,800		$	230,885		$	775,476		$	523,659
Tax lien business	8,482			4,673			20,742			12,606
	$	273,282		$	235,558		$	796,218		$	536,265
Operating income:
Portfolio purchasing and recovery	$	91,470		$	67,803		$	256,756		$	143,961
Tax lien business	3,794			1,832			7,780			3,455
	95,264			69,635			264,536			147,416
Depreciation and amortization	(6,933		)	(4,523		)	(19,879		)	(8,527		)
Stock-based compensation	(4,009		)	(3,983		)	(13,560		)	(9,163		)
Other expense	(44,030		)	(29,485		)	(124,870		)	(47,784		)
Income from operations before income taxes	$	40,292		$	31,644		$	106,227		$	81,942

Additionally, assets are allocated to operating segments for management review. As of September 30, 2014, total segment assets were $3.3 billion and $386.1 million for the portfolio purchasing and recovery segment and tax lien business segment, respectively.

The following presents information about geographic areas in which the Company operates (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Revenues(1) :
Domestic	$	190,581	$	189,086	$	565,134	$	489,793
International	82,701		46,472		231,084		46,472
	$	273,282	$	235,558	$	796,218	$	536,265

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(1) Revenues are attributed to countries based on location of customer.