Investment in Receivable Portfolios, Net (Tables)

9 Months Ended

Sep. 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):


	September 30, 2023		December 31, 2022
Amortized cost	$	—	$	—
Negative allowance for expected recoveries	3,320,544		3,088,261
Balance, end of period	$	3,320,544	$	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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Balance, beginning of period	$	3,330,986	$	3,035,123	$	3,088,261	$	3,065,553
Negative allowance for expected recoveries - current period purchases(1)	230,559		232,652		781,315		575,164
Collections applied to investment in receivable portfolios, net (2)	(162,652)		(161,037)		(504,672)		(567,775)
Changes in recoveries (3)	(17,067)		(13,080)		(30,054)		179,293
Put-backs and recalls	(3,179)		(1,552)		(9,214)		(6,132)

Disposals and transfers to real estate owned	(3,314)		(3,035)		(9,558)		(6,867)
Foreign currency translation adjustments	(54,789)		(112,869)		4,466		(263,034)
Balance, end of period	$	3,320,544	$	2,976,202	$	3,320,544	$	2,976,202

_______________________

(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,
	2023		2022		2023		2022
Purchase price	$	230,559	$	232,652	$	781,315	$	575,164
Allowance for credit losses	666,915		608,708		2,017,060		1,727,826
Amortized cost	897,474		841,360		2,798,375		2,302,990
Noncredit discount	1,171,383		834,468		3,225,837		2,398,775
Face value	2,068,857		1,675,828		6,024,212		4,701,765
Write-off of amortized cost	(897,474)		(841,360)		(2,798,375)		(2,302,990)
Write-off of noncredit discount	(1,171,383)		(834,468)		(3,225,837)		(2,398,775)
Negative allowance	230,559		232,652		781,315		575,164
Negative allowance for expected recoveries - current period purchases	$	230,559	$	232,652	$	781,315	$	575,164

(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,
	2023		2022		2023		2022
Cash Collections	$	465,339	$	458,256	$	1,404,217	$	1,475,381
Less - amounts classified to revenue from receivable portfolios	(302,687)		(297,219)		(899,545)		(907,606)
Collections applied to investment in receivable portfolios, net	$	162,652	$	161,037	$	504,672	$	567,775

(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,
	2023		2022		2023		2022
Recoveries (below) above forecast	$	(4,274)	$	(4,880)	$	(20,109)	$	51,407
Changes in expected future recoveries	(12,793)		(8,200)		(9,945)		127,886
Changes in recoveries	$	(17,067)	$	(13,080)	$	(30,054)	$	179,293