Segment Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Information

Note 15: Segment Information

The Company conducts business through two operating segments: portfolio purchasing and recovery and tax lien business. The Company’s management relies on internal management reporting processes that provide segment revenue, segment operating income, and segment asset information in order to make financial decisions and allocate resources. The operating results from the Company’s tax lien business segment are immaterial to the Company’s total consolidated operating results. However, total assets from this segment are significant as compared to the Company’s total consolidated assets. As a result, in accordance with authoritative guidance on segment reporting, the Company’s tax lien business segment is determined to be a reportable segment.

Segment operating income includes income from operations before depreciation, amortization of intangible assets, and stock-based compensation expense. The following table provides a reconciliation of revenue and segment operating income by reportable segment to consolidated results and was derived from the segments’ internal financial information as used for corporate management purposes (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Revenues:
Portfolio purchasing and recovery	$	152,091		$	138,733		$	292,774		$	265,143
Tax lien business		4,030			2,513			7,933			2,513
	$	156,121		$	141,246		$	300,707		$	267,656
Operating income:
Portfolio purchasing and recovery	$	33,478		$	41,396		$	76,158		$	79,918
Tax lien business		742			1,000			1,623			1,000
		34,220			42,396			77,781			80,918
Depreciation and amortization		(2,158	)		(1,420	)		(4,004	)		(2,660	)
Stock-based compensation		(2,179	)		(2,539	)		(5,180	)		(4,805	)
Other expense		(11,604	)		(6,603	)		(18,299	)		(11,851	)
Income from continuing operations before income taxes	$	18,279		$	31,834		$	50,298		$	61,602

Additionally, assets are allocated to operating segments for management review. As of June 30, 2013, total segment assets were $1.5 billion and $256.4 million for the portfolio purchasing and recovery segment and tax lien business segment, respectively.