Segment Information

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company conducts business through several operating segments that meet the aggregation criteria under the authoritative guidance related to segment reporting. The Company has determined that it has 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 March 31,
	2015			2014
Revenues:
Portfolio purchasing and recovery	$	277,783		$	248,589
Tax lien business	7,880			5,152
	$	285,663		$	253,741
Operating income:
Portfolio purchasing and recovery	$	96,929		$	77,568
Tax lien business	3,362			1,654
	100,291			79,222
Depreciation and amortization	(8,350		)	(6,117		)
Stock-based compensation	(5,905		)	(4,836		)
Other expense	(40,186		)	(37,697		)
Income before income taxes	$	45,850		$	30,572

Additionally, assets are allocated to operating segments for management review. As of March 31, 2015, total segment assets were $3.3 billion and $374.3 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 March 31,
	2015		2014
Revenues(1) :
Domestic	$	190,042	$	184,745
International	95,621		68,996
	$	285,663	$	253,741

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