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Investment in Receivable Portfolios, Net (Tables)
 9 Months Ended
Sep. 30, 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 (7)
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(2)
120,729

 
39,607

 
160,336

Additions for current purchases, net(2)
85,692

 
—

 
85,692

Balance at March 31, 2015
2,951,203

 
90,428

 
3,041,631

Revenue recognized, net(1)
(243,425
)
 
(26,876
)
 
(270,301
)
Net additions on existing portfolios(2)
91,294

 
74,586

 
165,880

Additions for current purchases, net(2), (3)
395,032

 
—

 
395,032

Balance at June 30, 2015
3,194,104

 
138,138

 
3,332,242

Revenue recognized, net(1)
(233,680
)
 
(31,843
)
 
(265,523
)
Net additions on existing portfolios(2), (4)
(3,548
)
 
117,918

 
114,370

Additions for current purchases, net(2)
149,255

 
—

 
149,255

Balance at September 30, 2015
$
3,106,131

 
$
224,213

 
$
3,330,344

 
Accretable
Yield
 
Estimate of
Zero Basis
Cash Flows
 
Total (7)
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(2)
92,325

 
8,555

 
100,880

Additions for current purchases, net(2), (5)
591,205

 
—

 
591,205

Balance at March 31, 2014
2,843,944

 
10,509

 
2,854,453

Revenue recognized, net(1)
(241,523
)
 
(6,708
)
 
(248,231
)
Net additions on existing portfolios(2)
80,582

 
6,135

 
86,717

Additions for current purchases, net(2)
218,047

 
—

 
218,047

Balance at June 30, 2014
2,901,050

 
9,936

 
2,910,986

Revenue recognized, net(1)
(244,561
)
 
(7,224
)
 
(251,785
)
Net additions on existing portfolios(2)
161,622

 
54,184

 
215,806

Additions for current purchases, net(2), (6)
179,604

 
—

 
179,604

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

 
$
56,896

 
$
3,054,611

________________________
(1)
Revenue recognized on Zero Basis Portfolios includes portfolio allowances and reversals.
(2)
Includes effect of foreign currency translation.
(3)
Includes $216.0 million of portfolios acquired in connection with the dlc Acquisition.
(4)
Includes impact of CFPB settlement of approximately $22.2 million.
(5)
Includes $208.5 million of portfolios acquired in connection with the Marlin Acquisition.
(6)
Includes $105.4 million of portfolios acquired in connection with the Atlantic Acquisition.
(7)
Estimated remaining collections and accretable yield include anticipated collections beyond the 120 month collection forecast for United States portfolios.
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, 2015
 
Accrual Basis
Portfolios
 
Cost Recovery
Portfolios
 
Zero Basis
Portfolios
 
Total
Balance, beginning of period
$
2,343,864

 
$
7,903

 
$
—

 
$
2,351,767

Purchases of receivable portfolios
187,180

 
—

 
—

 
187,180

Gross collections(1)
(388,822
)
 
(1,126
)
 
(31,805
)
 
(421,753
)
Put-backs and Recalls(2)
(5,677
)
 
(1
)
 
(37
)
 
(5,715
)
Foreign currency adjustments
(52,505
)
 
(1,273
)
 
—

 
(53,778
)
Revenue recognized
240,039

 
—

 
28,745

 
268,784

Portfolio (allowance) reversals, net(3)
(6,358
)
 
—

 
3,097

 
(3,261
)
Balance, end of period
$
2,317,721

 
$
5,503

 
$
—

 
$
2,323,224

Revenue as a percentage of collections(4)
61.7
%
 
0.0
%
 
90.4
%
 
63.7
%
 
 
 
 
 
 
 
 
 
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(5)
297,800

 
1,709

 
—

 
299,509

Transfer of portfolios
(11,519
)
 
11,519

 
—

 
—

Gross collections(1)
(395,945
)
 
(4,056
)
 
(7,219
)
 
(407,220
)
Put-backs and Recalls(2)
(1,530
)
 
(9
)
 
(5
)
 
(1,544
)
Foreign currency adjustments
(55,869
)
 
(1,414
)
 
—

 
(57,283
)
Revenue recognized
241,502

 
—

 
4,480

 
245,982

Portfolio allowance reversals, net
3,059

 
—

 
2,744

 
5,803

Balance, end of period
$
2,055,991

 
$
17,241

 
$
—

 
$
2,073,232

Revenue as a percentage of collections(4)
61.0
%
 
0.0
%
 
62.1
%
 
60.4
%
 
Nine Months Ended September 30, 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(6)
731,114

 
—

 
—

 
731,114

Gross collections(1)
(1,205,717
)
 
(4,351
)
 
(74,080
)
 
(1,284,148
)
Put-backs and Recalls(2)
(9,652
)
 
(20
)
 
(229
)
 
(9,901
)
Foreign currency adjustments
(54,753
)
 
(2,602
)
 
20

 
(57,335
)
Revenue recognized
731,196

 
—

 
64,780

 
795,976

Portfolio (allowance) reversals, net(3)
(5,551
)
 
—

 
9,509

 
3,958

Balance, end of period
$
2,317,721

 
$
5,503

 
$
—

 
$
2,323,224

Revenue as a percentage of collections(4)
60.6
%
 
0.0
%
 
87.4
%
 
62.0
%
 
 
 
 
 
 
 
 
 
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(5), (7)
991,127

 
1,709

 
—

 
992,836

Transfer of portfolios
(18,682
)
 
18,682

 
—

 
—

Gross collections(1)
(1,186,431
)
 
(6,305
)
 
(20,438
)
 
(1,213,174
)
Put-backs and Recalls(2)
(10,353
)
 
(412
)
 
(5
)
 
(10,770
)
Foreign currency adjustments
(22,398
)
 
(1,095
)
 
—

 
(23,493
)
Revenue recognized
713,656

 
—

 
11,473

 
725,129

Portfolio allowance reversals, net
3,485

 
—

 
8,970

 
12,455

Balance, end of period
$
2,055,991

 
$
17,241

 
$
—

 
$
2,073,232

Revenue as a percentage of collections(4)
60.2
%
 
0.0
%
 
56.1
%
 
59.8
%
________________________
(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)
Portfolio allowance reversal, net includes a portfolio allowance of $8.3 million related to the CFPB settlement as discussed in Note 13, “Commitments and Contingencies.”
(4)
Revenue as a percentage of collections excludes the effects of net portfolio allowances or net portfolio allowance reversals.
(5)
Includes $105.4 million acquired in connection with the Atlantic Acquisition in August 2014.
(6)
Includes $216.0 million acquired in connection with the dlc Acquisition in June 2015.
(7)
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 September 30,
 
Nine Months Ended September 30,
 
2015
 
2014
 
2015
 
2014
Balance at beginning of period
$
68,454

 
$
86,428

 
$
75,673

 
$
93,080

Provision for portfolio allowances
8,322

 
—

 
8,322

 
—

Reversal of prior allowances
(5,061
)
 
(5,803
)
 
(12,280
)
 
(12,455
)
Balance at end of period
$
71,715

 
$
80,625

 
$
71,715

 
$
80,625