Attention: | Michael Volley |
Re: | Encore Capital Group, Inc. |
1. | We note the table presenting collections by channel and geographic location on page 39. In future filings, please enhance Management’s Discussion and Analysis of Financial Condition and Results of Operations to include a description of each of these collection channels (i.e., legal collections, collection sites and collection agencies) and explain how these channels relate to your discussion on page 5 describing your portfolio purchasing and recovery collection approach. In addition, please discuss any material risks, opportunities or trends associated with each of these collection channels. |
2. | We note that your non-GAAP measure, adjusted EBITDA, excludes amounts applied to principal on receivables portfolios. In future filings, please clearly describe the nature of this adjustment and the underlying reasons why excluding these amounts are relevant. Also, please confirm that this adjustment is included in your debt covenants. |
3. | We note that your non-GAAP measures exclude settlement fees and related administrative expenses. In future filings, please clearly describe the nature of this adjustment and the underlying reasons why excluding these amounts are relevant. Also, please confirm that this adjustment is included in your debt covenants. |
4. | In future filings, please revise your foreign currency exchange rate risk disclosures to include quantitative information in one of the formats outlined in Item 305(a)(i) through (iii) of Regulation S-K. Alternatively, tell us how your current disclosure complies with this requirement. |
5. | In future filings, please provide an analysis of the changes in the cumulative translation adjustment, as appropriate, consistent with the guidance in ASC 830-30-45-18 through 20. |
6. | In future filings, please disclose revenues from the United States and from all foreign countries in total. If revenues attributed to an individual foreign country are material, disclose those revenues separately. You may wish to provide, in addition to this information, subtotals of geographic information about groups of countries. Refer to ASC 280-10-50-41. |
7. | In future filings, to the extent they are material, please disclose the amount of long-lived assets other than financial instruments, long-term customer relationships of a financial institution, mortgage and other servicing rights, deferred policy acquisition costs, and deferred tax assets located in the United States and from all foreign countries in total. If assets in an individual foreign country are material, disclose those assets separately. You may wish to provide, in addition to this information, subtotals of geographic information about groups of countries. Refer to ASC 280-10-50-41. |
• | the Company is responsible for the adequacy and accuracy of the disclosure in the filing; |
• | Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking any action with respect to the filing; and |
• | the Company may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States. |
!*>@!+? !,?0!-?P9.?0!.@ !.?P!0
M@@!0@P!0@P!1@P!2A@!2A@!3B !3B !5B@!5B@!6C !6C !7C@!7C@!9D !9
MD0!9D0!:D@!:D@!;DP! EE3(YD^WEE:6I6\^$FIH$7R7%FHNI4L157/C%8?K^Y6$@UEPB%F Y
M5EF6E6*:M5DL)E4NUF"F=5H01EZLI5!EA5X217#&N5[)*9HT*5>$^9R8=)C2
M^5O425_6:5\:)IO;608S15,U%6+/!9Z1)50H9E39I5U.E6#H^5WJ^6"II5KO
M>5[R&5%E5Y^UI9R!29I] T9A*9;3A)C3J9@"VDT$*E@&2D[FA* )VITW]9TD
M%IX16E03:I[GZ5U5]6):I:$1UJ'Q^:'I):)"-IKN!1']F9IZQ5 L_
M9;@$&,B )G3")X3"*)3"*:3"*K3^PBN<0AUH!!L4->)#NN-CN!WD0;*QB78P
M0R ,0B&\/R+4OR/$N$.@@#B4PSFDPSJTPSO$PSS4PSWD0PK0@1HTMW/+/ HT
M-3"$NS$,&YM8!#-DQ'9 PW-0PS5DPXD#P:E[-#J(@$S4Q$WDQ$[TQ$\$Q5 4
MQ5$D14Z$@4.(P"X ;\
MUS=S!"?0
M>NRY]YYE/M(G1Y *#6ED:$ABY!]J 39)()11(DBEE;@]J.66OW5I(889'K<$
MAU1YN%R(SCVGYG1GS;DJJZVZVI>,,^9IXQY\KKKP!_=P/>+
MOT)]BJCHQLY<)V?]$%NUUF>H+_WBB%Y0C6Q#D?LSU9;(FW7MF_R\R66\U\'A
MT\H+UJLKUH/MRHQWV P158O(V*X8,)"]3M>8C5&MDPK#DR1X"#)\V[B=V[J]
MV[S=V[[]VS)L \(]W,1=W,9]W,B=W,1= \S=W,[]W- =W=+^/=W4?02FG1",
MV-@V\]C6Z#8"&3=N ?CJ(NZ.8*^^ (#DM[JO=[LW=[N_=[P'=_Y<=T*H=V/
MR#:1*#JK!-Z>M))Z4PAPG9/E[3"JH ,<<. (GN *ON ,WN ._N 0'N$2/N$4
M7N$6[N#TO1#W[=K8^-VU>(OC4SXNB3Z)X)B/:3#E;=[H. $LWN(N_N(P'N,R
M/N,T7N,V?N,X/@$[X+T_#=3)88I;D>$ 8(T=OM\?;C_N5@'N9@,>[=6A,H,B71E"#@!%+C3@
M$]Y(;I BSD(*V9 -V0
,1/N;1$H\PDUX@%WDQ5[TQ5\$
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MS#QZM$>:C!=W2@1W\$JJ@'S_Q+T.1'L:S%6YRXLD1">NN[
MC5/-2PL\?W-,"1.WLW-)HEL_]K/-VZR2W-3,W30")! ))F@"10#.\Q1.OR3.
M?33.2$3.2K3$LT1,YU3-79-.D8-+V(Q,V63&NJQ-$>-.*?D!W>1-\62")6@"
M)X"".HB&\W30]/S*];S&]G1/TE3.T[RWQ%3,M>0ZUWQ,H;O.M+O(JP30 &V0
M(?A.WA0)!,V(BI "*FB$?=@'!WU0")70"17-T61#^+0Y#'6]OX-.UKQ/&1LY
MR'PNR>Q/ROS/2S!1!MG,\#10CE#^4"AX42JP@BK@@VB041FE4?2TT1MM1 I5
MPVZ\4/E$S5L#4OO\N>FD3OT\4OZ$2>T$L"95$!4]T 15T(FPTH3 @BS@ D78
MTD#M4N"$4, $4T84TR$D31ZM.!_5T"=;3;9L3/R$2Q -/NR\0?&B4][H3?),
M4!=]B"NM C_E@LDH TH(U%0=U.#\TD/M1T@4R=$K3-,TTPRE3[4,4DFU,P]M
M4TO%L%0<4>_:5-U0@CMMT2H5U3X5B"YXC,7@@U2%UAD=U$)UU6S,T>-<5,,\
MS1^M3\;<539]+R-]TTL%5J,;5MQ T$^ETE!-"%*=C&9=C#$@ T"-5FA=56JM
M5EJ,U5G^I3X11,O4[-;H7%-*_5!+K:YRW;!SM8UC9=
[-7>[>7>[O7>*01>I7A7+Z#9T;U9
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MO0WET"$ETOR