| Schedule 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, 2018 | $ | 3,773,171 |
| | $ | 253,035 |
| | $ | 4,026,206 |
| Revenue from receivable portfolios | (285,255 | ) | | (25,903 | ) | | (311,158 | ) | Allowance (reversals) on receivable portfolios, net | 900 |
| | (2,267 | ) | | (1,367 | ) | Additions (reductions) on existing portfolios, net | 38,512 |
| | (199 | ) | | 38,313 |
| Additions for current purchases | 285,637 |
| | — |
| | 285,637 |
| Effect of foreign currency translation | 26,244 |
| | 217 |
| | 26,461 |
| Balance at March 31, 2019 | $ | 3,839,209 |
| | $ | 224,883 |
| | $ | 4,064,092 |
| Revenue from receivable portfolios | (285,562 | ) | | (26,933 | ) | | (312,495 | ) | Allowance (reversals) on receivable portfolios, net | 255 |
| | (2,318 | ) | | (2,063 | ) | Additions (reductions) on existing portfolios, net | 113,074 |
| | 32,285 |
| | 145,359 |
| Additions for current purchases | 277,556 |
| | — |
| | 277,556 |
| Effect of foreign currency translation | (46,492 | ) | | (34 | ) | | (46,526 | ) | Balance at June 30, 2019 | $ | 3,898,040 |
| | $ | 227,883 |
| | $ | 4,125,923 |
|
| | | | | | | | | | | | | | Accretable Yield | | Estimate of Zero Basis Cash Flows | | Total | Balance at December 31, 2017 | $ | 3,695,069 |
| | $ | 369,632 |
| | $ | 4,064,701 |
| Revenue from receivable portfolios | (249,821 | ) | | (31,188 | ) | | (281,009 | ) | Allowance (reversals) on receivable portfolios, net | (8,082 | ) | | (1,729 | ) | | (9,811 | ) | Additions (reductions) on existing portfolios, net | (24,945 | ) | | (39,529 | ) | | (64,474 | ) | Additions for current purchases | 285,172 |
| | — |
| | 285,172 |
| Effect of foreign currency translation | 57,577 |
| | 643 |
| | 58,220 |
| Balance at March 31, 2018 | $ | 3,754,970 |
| | $ | 297,829 |
| | $ | 4,052,799 |
| Revenue from receivable portfolios | (258,698 | ) | | (33,964 | ) | | (292,662 | ) | Allowance (reversals) on receivable portfolios, net | (15,411 | ) | | (2,221 | ) | | (17,632 | ) | Additions (reductions) on existing portfolios, net | 136,267 |
| | 5,824 |
| | 142,091 |
| Additions for current purchases | 345,006 |
| | — |
| | 345,006 |
| Effect of foreign currency translation | (97,448 | ) | | (597 | ) | | (98,045 | ) | Balance at June 30, 2018 | $ | 3,864,686 |
| | $ | 266,871 |
| | $ | 4,131,557 |
|
|
| Schedule of 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 June 30, 2019 | | Accrual Basis Portfolios | | Cost Recovery Portfolios | | Zero Basis Portfolios | | Total | Balance, beginning of period | $ | 3,203,892 |
| | $ | 7,695 |
| | $ | — |
| | $ | 3,211,587 |
| Purchases of receivable portfolios | 242,697 |
| | — |
| | — |
| | 242,697 |
| Transfer of portfolios(4) | (78,980 | ) | | 78,980 |
| | — |
| | — |
| Transfers to assets held for sale | (813 | ) | | (1,514 | ) | | — |
| | (2,327 | ) | Collections on receivable portfolios (1) | (484,018 | ) | | (1,615 | ) | | (29,248 | ) | | (514,881 | ) | Put-Backs and Recalls(2) | (1,392 | ) | | — |
| | (3 | ) | | (1,395 | ) | Foreign currency adjustments | (26,756 | ) | | 1,085 |
| | — |
| | (25,671 | ) | Revenue recognized | 285,562 |
| | — |
| | 26,933 |
| | 312,495 |
| Portfolio (allowance) reversals, net | (255 | ) | | — |
| | 2,318 |
| | 2,063 |
| Balance, end of period | $ | 3,139,937 |
| | $ | 84,631 |
| | $ | — |
| | $ | 3,224,568 |
| Revenue as a percentage of collections(3) | 59.0 | % | | 0.0 | % | | 92.1 | % | | 60.7 | % |
| | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2018 | | Accrual Basis Portfolios | | Cost Recovery Portfolios | | Zero Basis Portfolios | | Total | Balance, beginning of period | $ | 3,013,519 |
| | $ | 10,622 |
| | $ | — |
| | $ | 3,024,141 |
| Purchases of receivable portfolios | 359,580 |
| | — |
| | — |
| | 359,580 |
| Transfers to assets held for sale | (2,033 | ) | | (262 | ) | | — |
| | (2,295 | ) | Collections on receivable portfolios (1) | (460,478 | ) | | (252 | ) | | (35,363 | ) | | (496,093 | ) | Put-Backs and Recalls(2) | (8,484 | ) | | — |
| | (24 | ) | | (8,508 | ) | Foreign currency adjustments | (101,921 | ) | | (577 | ) | | — |
| | (102,498 | ) | Revenue recognized | 258,698 |
| | — |
| | 33,964 |
| | 292,662 |
| Reclassification adjustment(5) | — |
| | 798 |
| | (798 | ) | | — |
| Portfolio allowance reversals, net | 15,411 |
| | — |
| | 2,221 |
| | 17,632 |
| Balance, end of period | $ | 3,074,292 |
| | $ | 10,329 |
| | $ | — |
| | $ | 3,084,621 |
| Revenue as a percentage of collections(3) | 56.2 | % | | 0.0 | % | | 96.0 | % | | 59.0 | % |
| | (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 effect of net portfolio allowances or net portfolio allowance reversals. |
| | (4) | Represents all portfolios in Mexico, which were transferred from accrual basis portfolios to cost recovery portfolios as the timing of future collections were determined to not be currently reasonably estimable due to the changing political and economic conditions in Mexico. |
| | (5) | Reclassification relating to certain Zero Basis Revenue that was classified as collections in cost recovery portfolios in prior periods. |
| | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2019 | | Accrual Basis Portfolios | | Cost Recovery Portfolios | | Zero Basis Portfolios | | Total | Balance, beginning of period | $ | 3,129,502 |
| | $ | 8,391 |
| | $ | — |
| | $ | 3,137,893 |
| Purchases of receivable portfolios | 505,032 |
| | — |
| | — |
| | 505,032 |
| Transfer of portfolios(5) | (78,980 | ) | | 78,980 |
| | — |
| | — |
| Transfers to assets held for sale | (3,958 | ) | | (1,958 | ) | | — |
| | (5,916 | ) | Collections on receivable portfolios (1) | (969,616 | ) | | (1,706 | ) | | (57,412 | ) | | (1,028,734 | ) | Put-Backs and Recalls(2) | (5,086 | ) | | — |
| | (9 | ) | | (5,095 | ) | Foreign currency adjustments | (6,619 | ) | | 924 |
| | — |
| | (5,695 | ) | Revenue recognized | 570,817 |
| | — |
| | 52,836 |
| | 623,653 |
| Portfolio (allowance) reversals, net | (1,155 | ) | | — |
| | 4,585 |
| | 3,430 |
| Balance, end of period | $ | 3,139,937 |
| | $ | 84,631 |
| | $ | — |
| | $ | 3,224,568 |
| Revenue as a percentage of collections(4) | 58.9 | % | | 0.0 | % | | 92.0 | % | | 60.6 | % |
| | | | | | | | | | | | | | | | | | Six Months Ended June 30, 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 | 636,342 |
| | — |
| | — |
| | 636,342 |
| Transfers to assets held for sale | (5,105 | ) | | (262 | ) | | — |
| | (5,367 | ) | Collections on receivable portfolios (1) | (915,621 | ) | | (1,423 | ) | | (68,151 | ) | | (985,195 | ) | Put-Backs and Recalls(2) | (12,175 | ) | | — |
| | (153 | ) | | (12,328 | ) | Foreign currency adjustments | (40,331 | ) | | (227 | ) | | — |
| | (40,558 | ) | Revenue recognized | 508,519 |
| | — |
| | 65,152 |
| | 573,671 |
| Reclassification adjustment(3) | — |
| | 798 |
| | (798 | ) | | — |
| Portfolio allowance reversals, net | 23,493 |
| | — |
| | 3,950 |
| | 27,443 |
| Balance, end of period | $ | 3,074,292 |
| | $ | 10,329 |
| | $ | — |
| | $ | 3,084,621 |
| Revenue as a percentage of collections(4) | 55.5 | % | | 0.0 | % | | 95.6 | % | | 58.2 | % |
| | (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) | Reclassification relating to certain Zero Basis Revenue that was classified as collections in cost recovery portfolios in prior periods. |
| | (4) | Revenue as a percentage of collections excludes the effect of net portfolio allowances or net portfolio allowance reversals. |
| | (5) | Represents all portfolios in Mexico, which were transferred from accrual basis portfolios to cost recovery portfolios as the timing of future collections were determined to not be currently reasonably estimable, due to the changing political and economic conditions in Mexico. |
|