Investment in Receivable Portfolios, Net (Tables)

6 Months Ended

Jun. 30, 2022

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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Balance, beginning of period	$	3,137,386	$	3,225,678	$	3,065,553	$	3,291,918
Purchases of receivable portfolios (1)	173,007		142,728		342,512		312,906
Collections applied to investment in receivable portfolios, net (2)	(191,429)		(284,277)		(406,738)		(552,720)
Changes in recoveries (3)	25,150		66,178		192,373		110,715
Put-backs and Recalls	(1,373)		(3,204)		(4,580)		(6,357)

Disposals and transfers to assets held for sale	(1,856)		(2,647)		(3,832)		(4,312)
Foreign currency adjustments	(105,762)		9,545		(150,165)		1,851
Balance, end of period	$	3,035,123	$	3,154,001	$	3,035,123	$	3,154,001

_______________________

(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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Purchase price	$	173,007	$	142,728	$	342,512	$	312,906
Allowance for credit losses	768,932		350,537		1,119,118		725,112
Amortized cost	941,939		493,265		1,461,630		1,038,018
Noncredit discount	907,249		658,358		1,564,307		1,442,470
Face value	1,849,188		1,151,623		3,025,937		2,480,488
Write-off of amortized cost	(941,939)		(493,265)		(1,461,630)		(1,038,018)
Write-off of noncredit discount	(907,249)		(658,358)		(1,564,307)		(1,442,470)
Negative allowance	173,007		142,728		342,512		312,906
Negative allowance for expected recoveries - current period purchases	$	173,007	$	142,728	$	342,512	$	312,906

(2)Collections applied to investment in receivable portfolios, net, is calculated as follows during the periods presented:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Cash Collections	$	497,711	$	612,427	$	1,017,125	$	1,218,888
Less - amounts classified to revenue from receivable portfolios	(306,282)		(328,150)		(610,387)		(666,168)
Collections applied to investment in receivable portfolios, net	$	191,429	$	284,277	$	406,738	$	552,720

(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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Recoveries above forecast	$	9,935	$	109,396	$	56,287	$	200,797
Changes in expected future recoveries	15,215		(43,218)		136,086		(90,082)
Changes in recoveries	$	25,150	$	66,178	$	192,373	$	110,715