XML 38 R26.htm IDEA: XBRL DOCUMENT v3.10.0.1
Investment in Receivable Portfolios, Net (Tables)
 6 Months Ended
Jun. 30, 2018
Receivables [Abstract]  
Schedule 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
Balance at December 31, 2017
$
3,695,069

 
$
369,632

 
$
4,064,701

Revenue from receivable portfolios
(249,821
)
 
(31,188
)
 
(281,009
)
Allowance reversals on receivable portfolios, net
(8,082
)
 
(1,729
)
 
(9,811
)
Reductions on existing portfolios, net
(24,945
)
 
(39,529
)
 
(64,474
)
Additions for current purchases
285,172

 
—

 
285,172

Effect of foreign currency translation
57,577

 
643

 
58,220

Balance at March 31, 2018
3,754,970

 
297,829

 
4,052,799

Revenue from receivable portfolios
(258,698
)
 
(33,964
)
 
(292,662
)
Allowance reversals on receivable portfolios, net
(15,411
)
 
(2,221
)
 
(17,632
)
Additions on existing portfolios, net
136,267

 
5,824

 
142,091

Additions for current purchases
345,006

 
—

 
345,006

Effect of foreign currency translation
(97,448
)
 
(597
)
 
(98,045
)
Balance at June 30, 2018
$
3,864,686

 
$
266,871

 
$
4,131,557

 
Accretable
Yield
 
Estimate of
Zero Basis
Cash Flows
 
Total
Balance at December 31, 2016
$
3,092,004

 
$
365,504

 
$
3,457,508

Revenue from receivable portfolios
(211,105
)
 
(38,733
)
 
(249,838
)
Allowance reversals on receivable portfolios, net
(613
)
 
(1,519
)
 
(2,132
)
(Reductions) additions on existing portfolios, net
(90,138
)
 
57,446

 
(32,692
)
Additions for current purchases
200,728

 
—

 
200,728

Effect of foreign currency translation
38,712

 
467

 
39,179

Balance at March 31, 2017
3,029,588

 
383,165

 
3,412,753

Revenue from receivable portfolios
(224,310
)
 
(39,097
)
 
(263,407
)
Allowance reversals on receivable portfolios, net
(7,121
)
 
(1,708
)
 
(8,829
)
Additions on existing portfolios, net
225,021

 
9,888

 
234,909

Additions for current purchases
258,687

 
—

 
258,687

Effect of foreign currency translation
66,927

 
(753
)
 
66,174

Balance at June 30, 2017
$
3,348,792

 
$
351,495

 
$
3,700,287
Schedule of 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 percentages):
 
Three Months Ended June 30, 2018
 
Accrual Basis
Portfolios
 
Cost Recovery
Portfolios
 
Zero Basis
Portfolios
 
Total
Balance, beginning of period
$
3,013,519

 
$
10,622

 
$
—

 
$
3,024,141

Purchases of receivable portfolios
359,580

 
—

 
—

 
359,580

Disposals or transfers to assets held for sale
(2,033
)
 
(262
)
 
—

 
(2,295
)
Gross collections(1)
(460,478
)
 
(252
)
 
(35,363
)
 
(496,093
)
Put-backs and Recalls(2)
(8,484
)
 
—

 
(24
)
 
(8,508
)
Foreign currency adjustments
(101,921
)
 
(577
)
 
—

 
(102,498
)
Revenue recognized
258,698

 
—

 
33,964

 
292,662

Reclassification adjustments(3)
—

 
798

 
(798
)
 
—

Portfolio allowance reversals, net
15,411

 
—

 
2,221

 
17,632

Balance, end of period
$
3,074,292

 
$
10,329

 
$
—

 
$
3,084,621

Revenue as a percentage of collections(4)
56.2
%
 
0.0
%
 
96.0
%
 
59.0
%
 
Three Months Ended June 30, 2017
 
Accrual Basis
Portfolios
 
Cost Recovery
Portfolios
 
Zero Basis
Portfolios
 
Total
Balance, beginning of period
$
2,422,299

 
$
13,719

 
$
—

 
$
2,436,018

Purchases of receivable portfolios
245,246

 
1,169

 
—

 
246,415

Disposals or transfers to assets held for sale
(2,697
)
 
—

 
—

 
(2,697
)
Gross collections(1)
(404,918
)
 
(459
)
 
(40,805
)
 
(446,182
)
Put-backs and Recalls(2)
(3,237
)
 
—

 
—

 
(3,237
)
Foreign currency adjustments
53,466

 
(94
)
 
—

 
53,372

Revenue recognized
224,310

 
—

 
39,097

 
263,407

Portfolio allowance reversals, net
7,121

 
—

 
1,708

 
8,829

Balance, end of period
$
2,541,590

 
$
14,335

 
$
—

 
$
2,555,925

Revenue as a percentage of collections(4)
55.4
%
 
0.0
%
 
95.8
%
 
59.0
%
________________________
(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)
Reclassification relating to certain Zero Basis Revenue that was classified as collections in cost recovery portfolios in prior periods.
(4)
Revenue as a percentage of collections excludes the effects of net portfolio allowances or net portfolio allowance reversals.

 
Six Months Ended June 30, 2018
 
Accrual Basis
Portfolios
 
Cost Recovery
Portfolios
 
Zero Basis
Portfolios
 
Total
Balance, beginning of period
$
2,879,170

 
$
11,443

 
$
—

 
$
2,890,613

Purchases of receivable portfolios
636,342

 
—

 
—

 
636,342

Disposals or transfers to held for sale
(5,105
)
 
(262
)
 
—

 
(5,367
)
Gross collections(1)
(915,621
)
 
(1,423
)
 
(68,151
)
 
(985,195
)
Put-backs and Recalls(2)
(12,175
)
 
—

 
(153
)
 
(12,328
)
Foreign currency adjustments
(40,331
)
 
(227
)
 
—

 
(40,558
)
Revenue recognized
508,519

 
—

 
65,152

 
573,671

Reclassification adjustments(3)
—

 
798

 
(798
)
 
—

Portfolio allowance reversals, net
23,493

 
—

 
3,950

 
27,443

Balance, end of period
$
3,074,292

 
$
10,329

 
$
—

 
$
3,084,621

Revenue as a percentage of collections(4)
55.5
%
 
0.0
%
 
95.6
%
 
58.2
%

 
Six Months Ended June 30, 2017
 
Accrual Basis
Portfolios
 
Cost Recovery
Portfolios
 
Zero Basis
Portfolios
 
Total
Balance, beginning of period
$
2,368,366

 
$
14,443

 
$
—

 
$
2,382,809

Purchases of receivable portfolios
463,973

 
1,169

 
—

 
465,142

Disposals or transfers to held for sale
(7,468
)
 
—

 
—

 
(7,468
)
Gross collections(1)
(804,922
)
 
(1,099
)
 
(81,024
)
 
(887,045
)
Put-backs and Recalls(2)
(4,994
)
 
—

 
(33
)
 
(5,027
)
Foreign currency adjustments
83,486

 
(178
)
 
—

 
83,308

Revenue recognized
435,415

 
—

 
77,830

 
513,245

Portfolio allowance reversals, net
7,734

 
—

 
3,227

 
10,961

Balance, end of period
$
2,541,590

 
$
14,335

 
$
—

 
$
2,555,925

Revenue as a percentage of collections(4)
54.1
%
 
0.0
%
 
96.1
%
 
57.9
%
________________________
(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)
Reclassification relating to certain Zero Basis Revenue that was classified as collections in cost recovery portfolios in prior periods.
(4)
Revenue as a percentage of collections excludes the effects of net portfolio allowances or net portfolio allowance reversals.
Schedule of 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 June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Balance at beginning of period
$
94,317

 
$
136,325

 
$
102,576

 
$
137,037

Provision for portfolio allowances
1,720

 
682

 
2,660

 
682

Reversal of prior allowances
(19,352
)
 
(9,511
)
 
(30,103
)
 
(11,643
)
Effect of foreign currency translation
(1,556
)
 
3,179

 
(4
)
 
4,599

Balance at end of period
$
75,129

 
$
130,675

 
$
75,129

 
$
130,675