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Finance Receivables, net (Tables) | 9 Months Ended
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Sep. 30, 2023
Receivables [Abstract] |
Schedule of 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
Schedule of Changes in Negative Allowance for Expected Recoveries | 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 |

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- Definition Tabular disclosure of the various types of trade accounts and notes receivable and for each the gross carrying value, allowance, and net carrying value as of the balance sheet date. Presentation is categorized by current, noncurrent and unclassified receivables. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1 + Details
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