XML 89 R27.htm IDEA: XBRL DOCUMENT v2.4.0.8
Investment in Receivable Portfolios, Net (Tables)
 9 Months Ended
Sep. 30, 2014
Receivables [Abstract]  
Summary of Accretable Yield and an Estimate of Zero Basis Future Cash Flows
The following table summarizes the Company’s accretable yield and an estimate of zero basis future cash flows at the beginning and end of the period presented (in thousands):
 
Accretable
Yield
 
Estimate of
Zero Basis
Cash Flows
 
Total
Balance at December 31, 2013
$
2,391,471

 
$
8,465

 
$
2,399,936

Revenue recognized, net
(231,057
)
 
(6,511
)
 
(237,568
)
Net additions on existing portfolios
92,325

 
8,555

 
100,880

Additions for current purchases(1)
591,205

 
—

 
591,205

Balance at March 31, 2014
2,843,944

 
10,509

 
2,854,453

Revenue recognized, net
(241,523
)
 
(6,708
)
 
(248,231
)
Net additions on existing portfolios
80,582

 
6,135

 
86,717

Additions for current purchases
218,047

 
—

 
218,047

Balance at June 30, 2014
2,901,050

 
9,936

 
2,910,986

Revenue recognized, net
(244,561
)
 
(7,224
)
 
(251,785
)
Net additions on existing portfolios
161,622

 
54,184

 
215,806

Additions for current purchases(2)
179,604

 
—

 
179,604

Balance at September 30, 2014
$
2,997,715

 
$
56,896

 
$
3,054,611

 
Accretable
Yield
 
Estimate of
Zero Basis
Cash Flows
 
Total
Balance at December 31, 2012
$
984,944

 
$
17,366

 
$
1,002,310

Revenue recognized, net
(135,072
)
 
(5,611
)
 
(140,683
)
Net additions on existing portfolios
173,634

 
7,061

 
180,695

Additions for current purchases
66,808

 
—

 
66,808

Balance at March 31, 2013
1,090,314

 
18,816

 
1,109,130

Revenue recognized, net
(144,186
)
 
(7,838
)
 
(152,024
)
Net additions on existing portfolios
30,458

 
10,784

 
41,242

Additions for current purchases(3)
645,865

 
—

 
645,865

Balance at June 30, 2013
1,622,451

 
21,762

 
1,644,213

Revenue recognized, net
(218,182
)
 
(7,205
)
 
(225,387
)
Net additions on existing portfolios
29,101

 
3,048

 
32,149

Additions for current purchases(4)
975,380

 
—

 
975,380

Balance at September 30, 2013
$
2,408,750

 
$
17,605

 
$
2,426,355

________________________
(1)
Includes $208.5 million of portfolios acquired in connection with the Marlin Acquisition discussed in Note 2, “Business Combinations.”
(2)
Includes $105.4 million of portfolios acquired in connection with the Atlantic Acquisition discussed in Note 2, “Business Combinations.”
(3)
Includes $383.4 million of portfolios acquired in connection with the merger with AACC.
(4)
Includes $559.0 million of portfolios acquired in connection with the Cabot Acquisition.
Summary of Changes in Balance of the Investment in Receivable Portfolios
The following tables summarize the changes in the balance of the investment in receivable portfolios during the following periods (in thousands, except percentages):
 
Three Months Ended September 30, 2014
 
Accrual Basis
Portfolios
 
Cost Recovery
Portfolios
 
Zero Basis
Portfolios
 
Total
Balance, beginning of period
$
1,978,493

 
$
9,492

 
$
—

 
$
1,987,985

Purchases of receivable portfolios(1)
297,800

 
1,709

 
—

 
299,509

Transfer of portfolios
(11,519
)
 
11,519

 
—

 
—

Gross collections(2)
(395,945
)
 
(4,056
)
 
(7,219
)
 
(407,220
)
Put-backs and recalls
(2,817
)
 
1,278

 
(5
)
 
(1,544
)
Foreign currency adjustments
(55,865
)
 
(1,418
)
 
—

 
(57,283
)
Revenue recognized
241,502

 
—

 
4,480

 
245,982

Portfolio allowance reversals, net
3,059

 
—

 
2,744

 
5,803

Balance, end of period
$
2,054,708

 
$
18,524

 
$
—

 
$
2,073,232

Revenue as a percentage of collections(3)
61.0
%
 
0.0
%
 
62.1
%
 
60.4
%
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2013
 
Accrual Basis
Portfolios
 
Cost Recovery
Portfolios
 
Zero Basis
Portfolios
 
Total
Balance, beginning of period
$
1,090,922

 
$
5,776

 
$
—

 
$
1,096,698

Purchases of receivable portfolios(4)
616,779

 
1,073

 
—

 
617,852

Transfer of portfolios
—

 
—

 
—

 
—

Gross collections(2)
(371,482
)
 
(983
)
 
(7,205
)
 
(379,670
)
Put-backs and recalls
(755
)
 
(242
)
 
—

 
(997
)
Foreign currency adjustments
36,372

 
—

 
—

 
36,372

Revenue recognized
218,182

 
—

 
4,227

 
222,409

Portfolio allowance reversals, net
—

 
—

 
2,978

 
2,978

Balance, end of period
$
1,590,018

 
$
5,624

 
$
—

 
$
1,595,642

Revenue as a percentage of collections(3)
58.7
%
 
0.0
%
 
58.7
%
 
58.6
%

 
Nine Months Ended September 30, 2014
 
Accrual Basis
Portfolios
 
Cost Recovery
Portfolios
 
Zero Basis
Portfolios
 
Total
Balance, beginning of period
$
1,585,587

 
$
4,662

 
$
—

 
$
1,590,249

Purchases of receivable portfolios(1)(5)
991,127

 
1,709

 
—

 
992,836

Transfer of portfolios
(18,682
)
 
18,682

 
—

 
—

Gross collections(2)
(1,186,431
)
 
(6,305
)
 
(20,438
)
 
(1,213,174
)
Put-backs and recalls
(11,640
)
 
875

 
(5
)
 
(10,770
)
Foreign currency adjustments
(22,394
)
 
(1,099
)
 
—

 
(23,493
)
Revenue recognized
713,656

 
—

 
11,473

 
725,129

Portfolio allowance reversals, net
3,485

 
—

 
8,970

 
12,455

Balance, end of period
$
2,054,708

 
$
18,524

 
$
—

 
$
2,073,232

Revenue as a percentage of collections(3)
60.2
%
 
0.0
%
 
56.1
%
 
59.8
%
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2013
 
Accrual Basis
Portfolios
 
Cost Recovery
Portfolios
 
Zero Basis
Portfolios
 
Total
Balance, beginning of period
$
873,119

 
$
—

 
$
—

 
$
873,119

Purchases of receivable portfolios (4)(6)
1,098,663

 
1,073

 
—

 
1,099,736

Transfer of portfolios
(6,649
)
 
6,649

 
—

 
—

Gross collections(2)
(905,751
)
 
(1,825
)
 
(20,652
)
 
(928,228
)
Put-backs and recalls
(2,512
)
 
(273
)
 
(2
)
 
(2,787
)
Foreign currency adjustments
35,708

 
—

 
—

 
35,708

Revenue recognized
496,804

 
—

 
13,632

 
510,436

Portfolio allowance reversals, net
636

 
—

 
7,022

 
7,658

Balance, end of period
$
1,590,018

 
$
5,624

 
$
—

 
$
1,595,642

Revenue as a percentage of collections(3)
54.8
%
 
0.0
%
 
66.0
%
 
55.0
%
________________________
(1)
Purchases of portfolio receivables include $105.4 million acquired in connection with the Atlantic Acquisition in August 2014 discussed in Note 2, “Business Combinations.”
(2)
Does not include amounts collected on behalf of others.
(3)
Revenue as a percentage of collections excludes the effects of net portfolio allowances or net portfolio allowance reversals.
(4)
Includes $559.0 million of portfolios acquired in connection with the Cabot Acquisition.
(5)
Includes $208.5 million acquired in connection with the Marlin Acquisition in February 2014 discussed in Note 2, “Business Combinations.”
(6)
Includes $383.4 million of portfolios acquired in connection with the merger with AACC.
Summary of Change in the Valuation Allowance for Investment in Receivable Portfolios
The following table summarizes the change in the valuation allowance for investment in receivable portfolios during the periods presented (in thousands):
 
Valuation Allowance
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2014
 
2013
 
2014
 
2013
Balance at beginning of period
$
86,428

 
$
100,593

 
$
93,080

 
$
105,273

Provision for portfolio allowances
—

 
—

 
—

 
479

Reversal of prior allowances
(5,803
)
 
(2,978
)
 
(12,455
)
 
(8,137
)
Balance at end of period
$
80,625

 
$
97,615

 
$
80,625

 
$
97,615