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Investment in Receivable Portfolios, Net (Tables) | 9 Months Ended
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Sep. 30, 2015
Receivables [Abstract] |
Summary of Accretable Yield and an Estimate of Zero Basis Future Cash Flows | The following table summarizes the Company’s accretable yield and an estimate of zero basis future cash flows at the beginning and end of the period presented (in thousands):
| Accretable Yield |  | Estimate of Zero Basis Cash Flows |  | Total (7)
December 31, 2014 | $ | 2,993,321 |  |  | $ | 66,392 |  |  | $ | 3,059,713 |
Revenue recognized, net(1) | (248,539 | ) |  | (15,571 | ) |  | (264,110 | )
Net additions on existing portfolios(2) | 120,729 |  |  | 39,607 |  |  | 160,336 |
Additions for current purchases, net(2) | 85,692 |  |  | — |  |  | 85,692 |
Balance at March 31, 2015 | 2,951,203 |  |  | 90,428 |  |  | 3,041,631 |
Revenue recognized, net(1) | (243,425 | ) |  | (26,876 | ) |  | (270,301 | )
Net additions on existing portfolios(2) | 91,294 |  |  | 74,586 |  |  | 165,880 |
Additions for current purchases, net(2), (3) | 395,032 |  |  | — |  |  | 395,032 |
Balance at June 30, 2015 | 3,194,104 |  |  | 138,138 |  |  | 3,332,242 |
Revenue recognized, net(1) | (233,680 | ) |  | (31,843 | ) |  | (265,523 | )
Net additions on existing portfolios(2), (4) | (3,548 | ) |  | 117,918 |  |  | 114,370 |
Additions for current purchases, net(2) | 149,255 |  |  | — |  |  | 149,255 |
Balance at September 30, 2015 | $ | 3,106,131 |  |  | $ | 224,213 |  |  | $ | 3,330,344 |
| Accretable Yield |  | Estimate of Zero Basis Cash Flows |  | Total (7)
Balance at December 31, 2013 | $ | 2,391,471 |  |  | $ | 8,465 |  |  | $ | 2,399,936 |
Revenue recognized, net(1) | (231,057 | ) |  | (6,511 | ) |  | (237,568 | )
Net additions on existing portfolios(2) | 92,325 |  |  | 8,555 |  |  | 100,880 |
Additions for current purchases, net(2), (5) | 591,205 |  |  | — |  |  | 591,205 |
Balance at March 31, 2014 | 2,843,944 |  |  | 10,509 |  |  | 2,854,453 |
Revenue recognized, net(1) | (241,523 | ) |  | (6,708 | ) |  | (248,231 | )
Net additions on existing portfolios(2) | 80,582 |  |  | 6,135 |  |  | 86,717 |
Additions for current purchases, net(2) | 218,047 |  |  | — |  |  | 218,047 |
Balance at June 30, 2014 | 2,901,050 |  |  | 9,936 |  |  | 2,910,986 |
Revenue recognized, net(1) | (244,561 | ) |  | (7,224 | ) |  | (251,785 | )
Net additions on existing portfolios(2) | 161,622 |  |  | 54,184 |  |  | 215,806 |
Additions for current purchases, net(2), (6) | 179,604 |  |  | — |  |  | 179,604 |
Balance at September 30, 2014 | $ | 2,997,715 |  |  | $ | 56,896 |  |  | $ | 3,054,611 |
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(1) | Revenue recognized on Zero Basis Portfolios includes portfolio allowances and reversals.
(2) | Includes effect of foreign currency translation.
(3) | Includes $216.0 million of portfolios acquired in connection with the dlc Acquisition.
(4) | Includes impact of CFPB settlement of approximately $22.2 million.
(5) | Includes $208.5 million of portfolios acquired in connection with the Marlin Acquisition.
(6) | Includes $105.4 million of portfolios acquired in connection with the Atlantic Acquisition.
(7) | Estimated remaining collections and accretable yield include anticipated collections beyond the 120 month collection forecast for United States portfolios.
Summary of Changes in Balance of the Investment in Receivable Portfolios | The following tables summarize the changes in the balance of the investment in receivable portfolios during the following periods (in thousands, except percentag es):
| Three Months Ended September 30, 2015
| Accrual Basis Portfolios |  | Cost Recovery Portfolios |  | Zero Basis Portfolios |  | Total
Balance, beginning of period | $ | 2,343,864 |  |  | $ | 7,903 |  |  | $ | — |  |  | $ | 2,351,767 |
Purchases of receivable portfolios | 187,180 |  |  | — |  |  | — |  |  | 187,180 |
Gross collections(1) | (388,822 | ) |  | (1,126 | ) |  | (31,805 | ) |  | (421,753 | )
Put-backs and Recalls(2) | (5,677 | ) |  | (1 | ) |  | (37 | ) |  | (5,715 | )
Foreign currency adjustments | (52,505 | ) |  | (1,273 | ) |  | — |  |  | (53,778 | )
Revenue recognized | 240,039 |  |  | — |  |  | 28,745 |  |  | 268,784 |
Portfolio (allowance) reversals, net(3) | (6,358 | ) |  | — |  |  | 3,097 |  |  | (3,261 | )
Balance, end of period | $ | 2,317,721 |  |  | $ | 5,503 |  |  | $ | — |  |  | $ | 2,323,224 |
Revenue as a percentage of collections(4) | 61.7 | % |  | 0.0 | % |  | 90.4 | % |  | 63.7 | %
| Three Months Ended September 30, 2014
| Accrual Basis Portfolios |  | Cost Recovery Portfolios |  | Zero Basis Portfolios |  | Total
Balance, beginning of period | $ | 1,978,493 |  |  | $ | 9,492 |  |  | $ | — |  |  | $ | 1,987,985 |
Purchases of receivable portfolios(5) | 297,800 |  |  | 1,709 |  |  | — |  |  | 299,509 |
Transfer of portfolios | (11,519 | ) |  | 11,519 |  |  | — |  |  | — |
Gross collections(1) | (395,945 | ) |  | (4,056 | ) |  | (7,219 | ) |  | (407,220 | )
Put-backs and Recalls(2) | (1,530 | ) |  | (9 | ) |  | (5 | ) |  | (1,544 | )
Foreign currency adjustments | (55,869 | ) |  | (1,414 | ) |  | — |  |  | (57,283 | )
Revenue recognized | 241,502 |  |  | — |  |  | 4,480 |  |  | 245,982 |
Portfolio allowance reversals, net | 3,059 |  |  | — |  |  | 2,744 |  |  | 5,803 |
Balance, end of period | $ | 2,055,991 |  |  | $ | 17,241 |  |  | $ | — |  |  | $ | 2,073,232 |
Revenue as a percentage of collections(4) | 61.0 | % |  | 0.0 | % |  | 62.1 | % |  | 60.4 | %
| Nine Months Ended September 30, 2015
| Accrual Basis Portfolios |  | Cost Recovery Portfolios |  | Zero Basis Portfolios |  | Total
Balance, beginning of period | $ | 2,131,084 |  |  | $ | 12,476 |  |  | $ | — |  |  | $ | 2,143,560 |
Purchases of receivable portfolios(6) | 731,114 |  |  | — |  |  | — |  |  | 731,114 |
Gross collections(1) | (1,205,717 | ) |  | (4,351 | ) |  | (74,080 | ) |  | (1,284,148 | )
Put-backs and Recalls(2) | (9,652 | ) |  | (20 | ) |  | (229 | ) |  | (9,901 | )
Foreign currency adjustments | (54,753 | ) |  | (2,602 | ) |  | 20 |  |  | (57,335 | )
Revenue recognized | 731,196 |  |  | — |  |  | 64,780 |  |  | 795,976 |
Portfolio (allowance) reversals, net(3) | (5,551 | ) |  | — |  |  | 9,509 |  |  | 3,958 |
Balance, end of period | $ | 2,317,721 |  |  | $ | 5,503 |  |  | $ | — |  |  | $ | 2,323,224 |
Revenue as a percentage of collections(4) | 60.6 | % |  | 0.0 | % |  | 87.4 | % |  | 62.0 | %
| Nine Months Ended September 30, 2014
| Accrual Basis Portfolios |  | Cost Recovery Portfolios |  | Zero Basis Portfolios |  | Total
Balance, beginning of period | $ | 1,585,587 |  |  | $ | 4,662 |  |  | $ | — |  |  | $ | 1,590,249 |
Purchases of receivable portfolios(5), (7) | 991,127 |  |  | 1,709 |  |  | — |  |  | 992,836 |
Transfer of portfolios | (18,682 | ) |  | 18,682 |  |  | — |  |  | — |
Gross collections(1) | (1,186,431 | ) |  | (6,305 | ) |  | (20,438 | ) |  | (1,213,174 | )
Put-backs and Recalls(2) | (10,353 | ) |  | (412 | ) |  | (5 | ) |  | (10,770 | )
Foreign currency adjustments | (22,398 | ) |  | (1,095 | ) |  | — |  |  | (23,493 | )
Revenue recognized | 713,656 |  |  | — |  |  | 11,473 |  |  | 725,129 |
Portfolio allowance reversals, net | 3,485 |  |  | — |  |  | 8,970 |  |  | 12,455 |
Balance, end of period | $ | 2,055,991 |  |  | $ | 17,241 |  |  | $ | — |  |  | $ | 2,073,232 |
Revenue as a percentage of collections(4) | 60.2 | % |  | 0.0 | % |  | 56.1 | % |  | 59.8 | %
________________________
(1) | Does not include amounts collected on behalf of others.
(2) | Put-backs represent accounts that are returned to the seller in accordance with the respective purchase agreement (“Put-Backs”). Recalls represent accounts that are recalled by the seller in accordance with the respective purchase agreement (“Recalls”).
(3) | Portfolio allowance reversal, net includes a portfolio allowance of $8.3 million related to the CFPB settlement as discussed in Note 13, “Commitments and Contingencies.”
(4) | Revenue as a percentage of collections excludes the effects of net portfolio allowances or net portfolio allowance reversals.
(5) | Includes $105.4 million acquired in connection with the Atlantic Acquisition in August 2014.
(6) | Includes $216.0 million acquired in connection with the dlc Acquisition in June 2015.
(7) | Includes $208.5 million acquired in connection with the Marlin Acquisition in February 2014.
Summary of Change in the Valuation Allowance for Investment in Receivable Portfolios | The following table summarizes the change in the valuation allowance for investment in receivable portfolios during the periods presented (in thousands):
| Valuation Allowance
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Balance at beginning of period | $ | 68,454 |  |  | $ | 86,428 |  |  | $ | 75,673 |  |  | $ | 93,080 |
Provision for portfolio allowances | 8,322 |  |  | — |  |  | 8,322 |  |  | — |
Reversal of prior allowances | (5,061 | ) |  | (5,803 | ) |  | (12,280 | ) |  | (12,455 | )
Balance at end of period | $ | 71,715 |  |  | $ | 80,625 |  |  | $ | 71,715 |  |  | $ | 80,625 |

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