Segment Information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Information

Note 15: Segment Information

The Company conducts business primarily through two reportable 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 the tax lien business 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):

	Year Ended December 31,
	2013			2012			2011
Revenues:
Portfolio purchasing and recovery	$	756,277		$	545,419		$	448,746
Tax lien business		17,087			11,358			—
	$	773,364		$	556,777		$	448,746
Operating income:
Portfolio purchasing and recovery	$	219,510		$	164,038		$	131,970
Tax lien business		5,045			5,677			—
		224,555			169,715			131,970
Depreciation and amortization		(13,547	)		(5,840	)		(4,081	)
Stock-based compensation		(12,649	)		(8,794	)		(7,709	)
Other expense		(77,491	)		(24,756	)		(21,511	)
Income from continuing operations before income taxes	$	120,868		$	130,325		$	98,669

Additionally, assets are allocated to operating segments for management review. As of December 31, 2013, total segment assets were $2.4 billion and $253.4 million for the portfolio purchasing and recovery segment and tax lien business segment, respectively.

The following presents information about geographic areas in which the Company operates (in thousands):

	Year Ended December 31,
	2013		2012		2011
Revenues(1) :
United States	$	677,873	$	556,777	$	448,746
United Kingdom		95,491		—		—
	$	773,364	$	556,777	$	448,746

⁽¹⁾  Revenues are attributed to countries based on location of customer.