Schedule of Investment in Receivable Portfolios |
The following table summarizes the changes in the balance of investment in receivable portfolios, net during the periods presented (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | | 2022 | | 2021 | | 2022 | | 2021 | | | | | Balance, beginning of period | $ | 3,035,123 | | | $ | 3,154,001 | | | $ | 3,065,553 | | | $ | 3,291,918 | | | | | | Purchases of receivable portfolios (1) | 232,652 | | | 168,188 | | | 575,164 | | | 481,094 | | | | | | Collections applied to investment in receivable portfolios, net (2) | (161,037) | | | (250,465) | | | (567,775) | | | (803,185) | | | | | | Changes in recoveries (3) | (13,080) | | | 65,913 | | | 179,293 | | | 176,628 | | | | | | Put-backs and Recalls | (1,552) | | | (1,724) | | | (6,132) | | | (8,081) | | | | | | Deconsolidation of receivable portfolios | — | | | (7,335) | | | — | | | (7,335) | | | | | | Disposals and transfers to assets held for sale | (3,035) | | | (1,816) | | | (6,867) | | | (6,128) | | | | | | Foreign currency translation adjustments | (112,869) | | | (43,491) | | | (263,034) | | | (41,640) | | | | | | Balance, end of period | $ | 2,976,202 | | | $ | 3,083,271 | | | $ | 2,976,202 | | | $ | 3,083,271 | | | | | | | | | | | | | | | | | | _______________________(1)The table below provides the detail on the establishment of negative allowance for expected recoveries of portfolios purchased during the periods presented: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2022 | | 2021 | | 2022 | | 2021 | Purchase price | $ | 232,652 | | | $ | 168,188 | | | $ | 575,164 | | | $ | 481,094 | | Allowance for credit losses | 608,708 | | | 449,412 | | | 1,727,826 | | | 1,174,524 | | Amortized cost | 841,360 | | | 617,600 | | | 2,302,990 | | | 1,655,618 | | Noncredit discount | 834,468 | | | 786,194 | | | 2,398,775 | | | 2,228,664 | | Face value | 1,675,828 | | | 1,403,794 | | | 4,701,765 | | | 3,884,282 | | Write-off of amortized cost | (841,360) | | | (617,600) | | | (2,302,990) | | | (1,655,618) | | Write-off of noncredit discount | (834,468) | | | (786,194) | | | (2,398,775) | | | (2,228,664) | | Negative allowance | 232,652 | | | 168,188 | | | 575,164 | | | 481,094 | | Negative allowance for expected recoveries - current period purchases | $ | 232,652 | | | $ | 168,188 | | | $ | 575,164 | | | $ | 481,094 | |
(2)Collections applied to investment in receivable portfolios, net, is calculated as follows during the periods presented: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2022 | | 2021 | | 2022 | | 2021 | Cash Collections | $ | 458,256 | | | $ | 566,690 | | | $ | 1,475,381 | | | $ | 1,785,578 | | Less - amounts classified to revenue from receivable portfolios | (297,219) | | | (316,225) | | | (907,606) | | | (982,393) | | Collections applied to investment in receivable portfolios, net | $ | 161,037 | | | $ | 250,465 | | | $ | 567,775 | | | $ | 803,185 | |
(3)Changes in recoveries is calculated as follows during the periods presented, where recoveries include cash collections, put-backs and recalls, and other cash-based adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2022 | | 2021 | | 2022 | | 2021 | Recoveries (below) above forecast | $ | (4,880) | | | $ | 77,064 | | | $ | 51,407 | | | $ | 277,861 | | Changes in expected future recoveries | (8,200) | | | (11,151) | | | 127,886 | | | (101,233) | | Changes in recoveries | $ | (13,080) | | | $ | 65,913 | | | $ | 179,293 | | | $ | 176,628 | |
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