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Investment in Receivable Portfolios, Net (Tables)
 3 Months Ended
Mar. 31, 2015
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
December 31, 2014
$
2,993,321

 
$
66,392

 
$
3,059,713

Revenue recognized, net(1)
(248,539
)
 
(15,571
)
 
(264,110
)
Net additions on existing portfolios
120,729

 
39,607

 
160,336

Additions for current purchases
85,692

 
—

 
85,692

Balance at March 31, 2015
$
2,951,203

 
$
90,428

 
$
3,041,631

 
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(1)
(231,057
)
 
(6,511
)
 
(237,568
)
Net additions on existing portfolios
92,325

 
8,555

 
100,880

Additions for current purchases(2)
591,205

 
—

 
591,205

Balance at March 31, 2014
$
2,843,944

 
$
10,509

 
$
2,854,453

________________________
(1)
Revenue recognized on Zero Basis Portfolios includes portfolio allowance reversals.
(2)
Includes $208.5 million of portfolios acquired in connection with the Marlin 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 March 31, 2015
 
Accrual Basis
Portfolios
 
Cost Recovery
Portfolios
 
Zero Basis
Portfolios
 
Total
Balance, beginning of period
$
2,131,084

 
$
12,476

 
$
—

 
$
2,143,560

Purchases of receivable portfolios
125,154

 
—

 
—

 
125,154

Gross collections(1)
(407,556
)
 
(1,972
)
 
(15,543
)
 
(425,071
)
Put-backs and Recalls(2)
(2,517
)
 
(18
)
 
(28
)
 
(2,563
)
Foreign currency adjustments
(65,369
)
 
(1,414
)
 
—

 
(66,783
)
Revenue recognized
248,539

 
—

 
12,712

 
261,251

Portfolio allowance reversals, net
—

 
—

 
2,859

 
2,859

Balance, end of period
$
2,029,335

 
$
9,072

 
$
—

 
$
2,038,407

Revenue as a percentage of collections(3)
61.0
%
 
0.0
%
 
81.8
%
 
61.5
%
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 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 (4)
467,565

 
—

 
—

 
467,565

Gross collections(1)
(389,503
)
 
(660
)
 
(6,511
)
 
(396,674
)
Put-backs and Recalls(2)
(3,235
)
 
(149
)
 
—

 
(3,384
)
Foreign currency adjustments
8,706

 
—

 
—

 
8,706

Revenue recognized
230,747

 
—

 
3,591

 
234,338

Portfolio allowance reversals, net
310

 
—

 
2,920

 
3,230

Balance, end of period
$
1,900,177

 
$
3,853

 
$
—

 
$
1,904,030

Revenue as a percentage of collections(3)
59.2
%
 
0.0
%
 
55.2
%
 
59.1
%
________________________
(1)
Does not include amounts collected on behalf of others.
(2)
Put-backs represent accounts that are returned to the seller in accordance with the respective purchase agreement (“Put-Backs”). Recalls represent accounts that are recalled by the seller in accordance with the respective purchase agreement (“Recalls”).
(3)
Revenue as a percentage of collections excludes the effects of net portfolio allowances or net portfolio allowance reversals.
(4)
Includes $208.5 million acquired in connection with the Marlin Acquisition in February 2014.
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 March 31,
 
2015
 
2014
Balance at beginning of period
$
75,673

 
$
93,080

Reversal of prior allowances
(2,859
)
 
(3,230
)
Balance at end of period
$
72,814

 
$
89,850