XML 43 R29.htm IDEA: XBRL DOCUMENT v3.10.0.1
Investment in Receivable Portfolios, Net (Tables)
 12 Months Ended
Dec. 31, 2018
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, 2016
$
3,092,004

 
$
365,504

 
$
3,457,508

Revenue from receivable portfolios
(909,239
)
 
(144,134
)
 
(1,053,373
)
Allowance reversals on receivable portfolios, net
(34,294
)
 
(6,942
)
 
(41,236
)
Net additions on existing portfolios
365,357

 
155,160

 
520,517

Additions for current purchases, net
1,019,856

 
—

 
1,019,856

Effect of foreign currency translation
161,385

 
44

 
161,429

Balance at December 31, 2017
3,695,069

 
369,632

 
4,064,701

Revenue from receivable portfolios
(1,041,947
)
 
(125,185
)
 
(1,167,132
)
Allowance reversals on receivable portfolios, net
(32,429
)
 
(9,044
)
 
(41,473
)
Net additions on existing portfolios
144,726

 
18,114

 
162,840

Additions for current purchases, net
1,155,451

 
—

 
1,155,451

Effect of foreign currency translation
(147,699
)
 
(482
)
 
(148,181
)
Balance at December 31, 2018
$
3,773,171

 
$
253,035

 
$
4,026,206
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):
 
Year Ended December 31, 2018
 
Accrual Basis
Portfolios
 
Cost Recovery
Portfolios
 
Zero Basis
Portfolios
 
Total
Balance, beginning of period
$
2,879,170

 
$
11,443

 
$
—

 
$
2,890,613

Purchases of receivable portfolios
1,131,898

 
—

 
—

 
1,131,898

Disposals or transfers to held for sale
(10,852
)
 
(1,604
)
 
—

 
(12,456
)
Gross collections(1)
(1,832,539
)
 
(1,826
)
 
(133,255
)
 
(1,967,620
)
Put-backs and Recalls(2)
(14,253
)
 
—

 
(176
)
 
(14,429
)
Foreign currency adjustments
(98,298
)
 
(420
)
 
—

 
(98,718
)
Revenue recognized
1,041,947

 
—

 
125,185

 
1,167,132

Portfolio allowance reversals, net
32,429

 
—

 
9,044

 
41,473

Reclassification from prior period
—

 
798

 
(798
)
 
—

Balance, end of period
$
3,129,502

 
$
8,391

 
$
—

 
$
3,137,893

Revenue as a percentage of collections(3)
56.9
%
 
—

 
93.9
%
 
59.3
%
 
Year Ended December 31, 2017
 
Accrual Basis
Portfolios
 
Cost Recovery
Portfolios
 
Zero Basis
Portfolios
 
Total
Balance, beginning of period
$
2,368,366

 
$
14,443

 
$
—

 
$
2,382,809

Purchases of receivable portfolios
1,057,066

 
1,169

 
—

 
1,058,235

Disposals or transfers to held for sale
(12,695
)
 
(493
)
 
—

 
(13,188
)
Gross collections(1)
(1,613,351
)
 
(3,511
)
 
(150,782
)
 
(1,767,644
)
Put-backs and Recalls(2)
(2,577
)
 
—

 
(294
)
 
(2,871
)
Foreign currency adjustments
138,828

 
(165
)
 
—

 
138,663

Revenue recognized
909,239

 
—

 
144,134

 
1,053,373

Portfolio (allowance) reversals, net
34,294

 
—

 
6,942

 
41,236

Balance, end of period
$
2,879,170

 
$
11,443

 
$
—

 
$
2,890,613

Revenue as a percentage of collections(3)
56.4
%
 
—

 
95.6
%
 
59.6
%
 
Year Ended December 31, 2016
 
Accrual Basis
Portfolios
 
Cost Recovery
Portfolios
 
Zero Basis
Portfolios
 
Total
Balance, beginning of period
$
2,436,054

 
$
4,615

 
$
—

 
$
2,440,669

Purchases of receivable portfolios
906,719

 
—

 
—

 
906,719

Transfer of portfolios
(13,076
)
 
13,076

 
—

 
—

Gross collections(1)
(1,538,663
)
 
(2,102
)
 
(144,839
)
 
(1,685,604
)
Put-backs and Recalls(2)
(27,561
)
 
(1,019
)
 
(33
)
 
(28,613
)
Foreign currency adjustments
(196,842
)
 
(127
)
 
(8
)
 
(196,977
)
Revenue recognized
892,732

 
—

 
138,060

 
1,030,792

Portfolio (allowance) reversals, net
(90,997
)
 
—

 
6,820

 
(84,177
)
Balance, end of period
$
2,368,366

 
$
14,443

 
$
—

 
$
2,382,809

Revenue as a percentage of collections(3)
58.0
%
 
—

 
95.3
%
 
61.2
%
________________________
(1)
Does not include amounts collected on behalf of others.
(2)
Put-backs (“Put-Backs”) and recalls (“Recalls”) represent ineligible accounts that are returned by us or recalled by the seller pursuant to specific guidelines as set forth in the respective purchase agreements.
(3)
Revenue as a percentage of collections excludes the effects of net portfolio allowances or net portfolio allowance reversals.
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
Balance at December 31, 2015
$
60,588

Provision for portfolio allowances
94,011

Reversal of prior allowances
(9,834
)
Effect of foreign currency translation
(7,728
)
Balance at December 31, 2016
137,037

Provision for portfolio allowances
12,047

Reversal of prior allowances
(53,283
)
Effect of foreign currency translation
6,775

Balance at December 31, 2017
102,576

Provision for portfolio allowances
14,421

Reversal of prior allowances
(55,894
)
Effect of foreign currency translation
(472
)
Balance at December 31, 2018
$
60,631