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Finance Receivables, net | 9 Months Ended
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Sep. 30, 2023 | Sep. 30, 2022
Receivables [Abstract] |  |
Finance Receivables, net | and 2022 Changes in the negative allowance for expected recoveries by portfolio segment for the nine months ended September 30, 2023 and 2022 were as follows (amounts in thousands):
| Nine Months Ended September 30, 2023
| Core |  | Insolvency |  | Total
Balance at beginning of period | $ | 2,936,207 |  |  | $ | 358,801 |  |  | $ | 3,295,008 |
Initial negative allowance for expected recoveries - portfolio acquisitions (1) | 763,776 |  |  | 105,391 |  |  | 869,167 |
Foreign currency translation adjustment | (15,662) |  |  | 1,296 |  |  | (14,366) |
Recoveries applied to negative allowance (2) | (574,993) |  |  | (120,392) |  |  | (695,385) |
Changes in expected recoveries (3) | (7,436) |  |  | 13,816 |  |  | 6,380 |
Balance at end of period | $ | 3,101,892 |  |  | $ | 358,912 |  |  | $ | 3,460,804 |
| Nine Months Ended September 30, 2022
| Core |  | Insolvency |  | Total
Balance at beginning of period | $ | 2,989,932 |  |  | $ | 438,353 |  |  | $ | 3,428,285 |
Initial negative allowance for expected recoveries - portfolio acquisitions (1) | 513,385 |  |  | 48,516 |  |  | 561,901 |
Foreign currency translation adjustment | (287,901) |  |  | (34,010) |  |  | (321,911) |
Recoveries applied to negative allowance (2) | (628,293) |  |  | (137,439) |  |  | (765,732) |
Changes in expected recoveries (3) | 107,155 |  |  | 27,662 |  |  | 134,817 |
Balance at end of period | $ | 2,694,278 |  |  | $ | 343,082 |  |  | $ | 3,037,360 |
(1) Initial negative allowance for expected recoveries - portfolio acquisitions Portfolio acquisitions for the nine months ended September 30, 2023 and 2022 were as follows (amounts in thousands):
| Nine Months Ended September 30, 2023
| Core |  | Insolvency |  | Total
Face value | $ | 5,717,674 |  |  | $ | 579,113 |  |  | $ | 6,296,787 |
Noncredit discount | (600,174) |  |  | (38,621) |  |  | (638,795) |
Allowance for credit losses at acquisition | (4,353,724) |  |  | (435,101) |  |  | (4,788,825) |
Purchase price | $ | 763,776 |  |  | $ | 105,391 |  |  | $ | 869,167 |
| Nine Months Ended September 30, 2022
| Core |  | Insolvency |  | Total
Face value | $ | 3,539,705 |  |  | $ | 256,528 |  |  | $ | 3,796,233 |
Noncredit discount | (363,138) |  |  | (16,976) |  |  | (380,114) |
Allowance for credit losses at acquisition | (2,663,182) |  |  | (191,036) |  |  | (2,854,218) |
Purchase price | $ | 513,385 |  |  | $ | 48,516 |  |  | $ | 561,901 |
The initial negative allowance recorded on portfolio acquisitions for the nine months ended September 30, 2023 and 2022 was as follows (amounts in thousands):
| Nine Months Ended September 30, 2023
| Core |  | Insolvency |  | Total
Allowance for credit losses at acquisition | $ | (4,353,724) |  |  | $ | (435,101) |  |  | $ | (4,788,825) |
Writeoffs, net | 4,353,724 |  |  | 435,101 |  |  | 4,788,825 |
Expected recoveries | 763,776 |  |  | 105,391 |  |  | 869,167 |
Initial negative allowance for expected recoveries | $ | 763,776 |  |  | $ | 105,391 |  |  | $ | 869,167 |
| Nine Months Ended September 30, 2022
| Core |  | Insolvency |  | Total
Allowance for credit losses at acquisition | $ | (2,663,182) |  |  | $ | (191,036) |  |  | $ | (2,854,218) |
Writeoffs, net | 2,663,182 |  |  | 191,036 |  |  | 2,854,218 |
Expected recoveries | 513,385 |  |  | 48,516 |  |  | 561,901 |
Initial negative allowance for expected recoveries | $ | 513,385 |  |  | $ | 48,516 |  |  | $ | 561,901 |
(2) Recoveries applied to negative allowance Recoveries applied to the negative allowance for the nine months ended September 30, 2023 and 2022 were as follows (amounts in thousands):
| Nine Months Ended September 30, 2023
| Core |  | Insolvency |  | Total
Recoveries (a) | $ | 1,106,799 |  |  | $ | 151,078 |  |  | $ | 1,257,877 |
Less - amounts reclassified to portfolio income | 531,806 |  |  | 30,686 |  |  | 562,492 |
Recoveries applied to negative allowance | $ | 574,993 |  |  | $ | 120,392 |  |  | $ | 695,385 |
| Nine Months Ended September 30, 2022
| Core |  | Insolvency |  | Total
Recoveries (a) | $ | 1,179,746 |  |  | $ | 173,380 |  |  | $ | 1,353,126 |
Less - amounts reclassified to portfolio income | 551,453 |  |  | 35,941 |  |  | 587,394 |
Recoveries applied to negative allowance | $ | 628,293 |  |  | $ | 137,439 |  |  | $ | 765,732 |
(a) Recoveries include cash collections, buybacks and other cash-based adjustments. (3) Changes in expected recoveries Changes in expected recoveries for the nine months ended September 30, 2023 and 2022 were as follows (amounts in thousands):
| Nine Months Ended September 30, 2023
| Core |  | Insolvency |  | Total
Changes in expected future recoveries | $ | (40,919) |  |  | $ | 23 |  |  | $ | (40,896) |
Recoveries received in excess of forecast | 33,483 |  |  | 13,793 |  |  | 47,276 |
Changes in expected recoveries | $ | (7,436) |  |  | $ | 13,816 |  |  | $ | 6,380 |
| Nine Months Ended September 30, 2022
| Core |  | Insolvency |  | Total
Changes in expected future recoveries | $ | 43,262 |  |  | $ | 3,894 |  |  | $ | 47,156 |
Recoveries received in excess of forecast | 63,893 |  |  | 23,768 |  |  | 87,661 |
Changes in expected recoveries | $ | 107,155 |  |  | $ | 27,662 |  |  | $ | 134,817 |
Changes in expected recoveries for the nine months ended September 30, 2023 were a net positive $6.4 million. This includes $47.3 million in recoveries received in excess of forecast (cash collections overperformance), primarily due to continued strong performance in Europe and South America, and a $40.9 million negative adjustment to changes in expected future recoveries. The changes in expected future recoveries reflected the Company's assessment of certain pools, which resulted in a reduction of expected cash flows due largely to collections performance in the U.S. Changes in expected recoveries for the nine months ended September 30, 2022 were a net positive $134.8 million. This reflected $87.7 million in recoveries received in excess of forecast reflecting cash collections overperformance and a $47.2 million net positive adjustment to changes in expected future recoveries. The changes in expected future recoveries reflected the Company's assessment of certain pools, where continued strong performance resulted in a net increase to the Company's ERC. The Company continued to believe that the majority of the overperformance in its more recent pools was due to acceleration in the timing of cash collections rather than an increase in total expected collections. The change in expected recoveries also included a $20.5 million write down during the first quarter in 2022 on one portfolio in Brazil. | Finance Receivables, net: Finance receivables, net consisted of the following at September 30, 2023 and December 31, 2022 (amounts in thousands):
| September 30, 2023 |  | December 31, 2022
Amortized cost | $ | — |  |  | $ | — |
Negative allowance for expected recoveries | 3,460,804 |  |  | 3,295,008 |
Balance at end of period | $ | 3,460,804 |  |  | $ | 3,295,008 |
Three Months Ended September 30, 2023 and 2022 Changes in the negative allowance for expected recoveries by portfolio segment for the three months ended September 30, 2023 and 2022 were as follows (amounts in thousands):
| Three Months Ended September 30, 2023
| Core |  | Insolvency |  | Total
Balance at beginning of period | $ | 3,086,405 |  |  | $ | 338,143 |  |  | $ | 3,424,548 |
Initial negative allowance for expected recoveries - portfolio acquisitions (1) | 248,181 |  |  | 63,002 |  |  | 311,183 |
Foreign currency translation adjustment | (58,878) |  |  | (6,786) |  |  | (65,664) |
Recoveries applied to negative allowance (2) | (189,710) |  |  | (41,709) |  |  | (231,419) |
Changes in expected recoveries (3) | 15,894 |  |  | 6,262 |  |  | 22,156 |
Balance at end of period | $ | 3,101,892 |  |  | $ | 358,912 |  |  | $ | 3,460,804 |
| Three Months Ended September 30, 2022
| Core |  | Insolvency |  | Total
Balance at beginning of period | $ | 2,814,761 |  |  | $ | 368,871 |  |  | $ | 3,183,632 |
Initial negative allowance for expected recoveries - portfolio acquisitions (1) | 160,206 |  |  | 22,898 |  |  | 183,104 |
Foreign currency translation adjustment | (133,263) |  |  | (14,254) |  |  | (147,517) |
Recoveries applied to negative allowance (2) | (186,112) |  |  | (44,083) |  |  | (230,195) |
Changes in expected recoveries (3) | 38,686 |  |  | 9,650 |  |  | 48,336 |
Balance at end of period | $ | 2,694,278 |  |  | $ | 343,082 |  |  | $ | 3,037,360 |
(1) Initial negative allowance for expected recoveries - portfolio acquisitions Portfolio acquisitions for the three months ended September 30, 2023 and 2022 were as follows (amounts in thousands):
| Three Months Ended September 30, 2023
| Core |  | Insolvency |  | Total
Face value | $ | 1,992,448 |  |  | $ | 382,363 |  |  | $ | 2,374,811 |
Noncredit discount | (209,131) |  |  | (23,837) |  |  | (232,968) |
Allowance for credit losses at acquisition | (1,535,136) |  |  | (295,524) |  |  | (1,830,660) |
Purchase price | $ | 248,181 |  |  | $ | 63,002 |  |  | $ | 311,183 |
| Three Months Ended September 30, 2022
| Core |  | Insolvency |  | Total
Face value | $ | 1,482,758 |  |  | $ | 123,369 |  |  | $ | 1,606,127 |
Noncredit discount | (126,205) |  |  | (7,874) |  |  | (134,079) |
Allowance for credit losses at acquisition | (1,196,347) |  |  | (92,597) |  |  | (1,288,944) |
Purchase price | $ | 160,206 |  |  | $ | 22,898 |  |  | $ | 183,104 |
The initial negative allowance recorded on portfolio acquisitions for the three months ended September 30, 2023 and 2022 was as follows (amounts in thousands):
| Three Months Ended September 30, 2023
| Core |  | Insolvency |  | Total
Allowance for credit losses at acquisition | $ | (1,535,136) |  |  | $ | (295,524) |  |  | $ | (1,830,660) |
Writeoffs, net | 1,535,136 |  |  | 295,524 |  |  | 1,830,660 |
Expected recoveries | 248,181 |  |  | 63,002 |  |  | 311,183 |
Initial negative allowance for expected recoveries | $ | 248,181 |  |  | $ | 63,002 |  |  | $ | 311,183 |
| Three Months Ended September 30, 2022
| Core |  | Insolvency |  | Total
Allowance for credit losses at acquisition | $ | (1,196,347) |  |  | $ | (92,597) |  |  | $ | (1,288,944) |
Writeoffs, net | 1,196,347 |  |  | 92,597 |  |  | 1,288,944 |
Expected recoveries | 160,206 |  |  | 22,898 |  |  | 183,104 |
Initial negative allowance for expected recoveries | $ | 160,206 |  |  | $ | 22,898 |  |  | $ | 183,104 |
(2) Recoveries applied to negative allowance Recoveries applied to the negative allowance for the three months ended September 30, 2023 and 2022 were as follows (amounts in thousands):
| Three Months Ended September 30, 2023
| Core |  | Insolvency |  | Total
Recoveries (a) | $ | 369,385 |  |  | $ | 51,994 |  |  | $ | 421,379 |
Less - amounts reclassified to portfolio income | 179,675 |  |  | 10,285 |  |  | 189,960 |
Recoveries applied to negative allowance | $ | 189,710 |  |  | $ | 41,709 |  |  | $ | 231,419 |
| Three Months Ended September 30, 2022
| Core |  | Insolvency |  | Total
Recoveries (a) | $ | 361,089 |  |  | $ | 54,959 |  |  | $ | 416,048 |
Less - amounts reclassified to portfolio income | 174,977 |  |  | 10,876 |  |  | 185,853 |
Recoveries applied to negative allowance | $ | 186,112 |  |  | $ | 44,083 |  |  | $ | 230,195 |
(a) Recoveries include cash collections, buybacks and other cash-based adjustments. (3) Changes in expected recoveries Changes in expected recoveries for the three months ended September 30, 2023 and 2022 were as follows (amounts in thousands):
| Three Months Ended September 30, 2023
| Core |  | Insolvency |  | Total
Changes in expected future recoveries | $ | 4,234 |  |  | $ | (168) |  |  | $ | 4,066 |
Recoveries received in excess of forecast | 11,660 |  |  | 6,430 |  |  | 18,090 |
Changes in expected recoveries | $ | 15,894 |  |  | $ | 6,262 |  |  | $ | 22,156 |
| Three Months Ended September 30, 2022
| Core |  | Insolvency |  | Total
Changes in expected future recoveries | $ | 17,851 |  |  | $ | 2,361 |  |  | $ | 20,212 |
Recoveries received in excess of forecast | 20,835 |  |  | 7,289 |  |  | 28,124 |
Changes in expected recoveries | $ | 38,686 |  |  | $ | 9,650 |  |  | $ | 48,336 |
In order to estimate future cash collections, the Company considers historical performance and current economic forecasts, as well as expectations for short-term and long-term growth and consumer habits in the various geographies in which the Company operates. The Company considers recent collection activity in its determination to adjust assumptions related to estimated remaining collections ("ERC") for certain pools. Based on these considerations, the Company’s estimates of ERC incorporate changes in both amounts and in the timing of expected cash collections over the forecast period. Changes in expected recoveries for the three months ended September 30, 2023 were a net positive $22.2 million. This includes $18.1 million in recoveries received in excess of forecast (cash collections overperformance) and a $4.1 million positive adjustment to changes in expected future recoveries. The $18.1 million in recoveries received in excess of forecast reflected overperformance in Europe and the Americas. Changes in expected recoveries for the three months ended September 30, 2022 were a net positive $48.3 million. This reflected $28.1 million in recoveries received in excess of forecast reflecting cash collections overperformance and a $20.2 million positive adjustment to changes in expected future recoveries. The changes in expected future recoveries reflected the Company's assessment of certain pools, where continued strong performance resulted in an increase to the Company's ERC.

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