Investment in Receivable Portfolios, Net (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Accounts, Notes, Loans and Financing Receivable

Investment in receivable portfolios, net consists of the following as of the dates presented (in thousands):


	June 30, 2023		December 31, 2022
Amortized cost	$	—	$	—
Negative allowance for expected recoveries	3,330,986		3,088,261
Balance, end of period	$	3,330,986	$	3,088,261

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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Balance, beginning of period	$	3,214,792	$	3,137,386	$	3,088,261	$	3,065,553
Negative allowance for expected recoveries - current period purchases(1)	274,325		173,007		550,756		342,512
Collections applied to investment in receivable portfolios, net (2)	(175,338)		(191,429)		(342,020)		(406,738)
Changes in recoveries (3)	(3,486)		25,150		(12,987)		192,373
Put-backs and Recalls	(4,229)		(1,373)		(6,035)		(4,580)

Disposals and transfers to real estate owned	(5,139)		(1,856)		(6,244)		(3,832)
Foreign currency translation adjustments	30,061		(105,762)		59,255		(150,165)
Balance, end of period	$	3,330,986	$	3,035,123	$	3,330,986	$	3,035,123

_______________________

(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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Purchase price	$	274,325	$	173,007	$	550,756	$	342,512
Allowance for credit losses	690,501		768,932		1,350,145		1,119,118
Amortized cost	964,826		941,939		1,900,901		1,461,630
Noncredit discount	1,049,233		907,249		2,054,454		1,564,307
Face value	2,014,059		1,849,188		3,955,355		3,025,937
Write-off of amortized cost	(964,826)		(941,939)		(1,900,901)		(1,461,630)
Write-off of noncredit discount	(1,049,233)		(907,249)		(2,054,454)		(1,564,307)
Negative allowance	274,325		173,007		550,756		342,512
Negative allowance for expected recoveries - current period purchases	$	274,325	$	173,007	$	550,756	$	342,512

(2)Collections applied to investment in receivable portfolios, net, is calculated as follows during the periods presented:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cash Collections	$	476,522	$	497,711	$	938,878	$	1,017,125
Less - amounts classified to revenue from receivable portfolios	(301,184)		(306,282)		(596,858)		(610,387)
Collections applied to investment in receivable portfolios, net	$	175,338	$	191,429	$	342,020	$	406,738

(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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Recoveries (below) above forecast	$	(477)	$	9,935	$	(15,835)	$	56,287
Changes in expected future recoveries	(3,009)		15,215		2,848		136,086
Changes in recoveries	$	(3,486)	$	25,150	$	(12,987)	$	192,373