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Finance Receivables, net
 9 Months Ended
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
CoreInsolvencyTotal
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
CoreInsolvencyTotal
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
CoreInsolvencyTotal
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
CoreInsolvencyTotal
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 $561,901 
The initial negative allowance recorded on portfolio acquisitions for the nine months ended September 30, 2023 and 2022 was as follows (amounts in thousands):
Nine Months Ended September 30, 2023
CoreInsolvencyTotal
Allowance for credit losses at acquisition$(4,353,724)$(435,101)$(4,788,825)
Writeoffs, net4,353,724 435,101 4,788,825 
Expected recoveries763,776 105,391 869,167 
Initial negative allowance for expected recoveries$763,776 $105,391 $869,167 
Nine Months Ended September 30, 2022
CoreInsolvencyTotal
Allowance for credit losses at acquisition$(2,663,182)$(191,036)$(2,854,218)
Writeoffs, net2,663,182 191,036 2,854,218 
Expected recoveries513,385 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
CoreInsolvencyTotal
Recoveries (a)
$1,106,799 $151,078 $1,257,877 
Less - amounts reclassified to portfolio income531,806 30,686 562,492 
Recoveries applied to negative allowance$574,993 $120,392 $695,385 
Nine Months Ended September 30, 2022
CoreInsolvencyTotal
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
CoreInsolvencyTotal
Changes in expected future recoveries $(40,919)$23 $(40,896)
Recoveries received in excess of forecast33,483 13,793 47,276 
Changes in expected recoveries$(7,436)$13,816 $6,380 
Nine Months Ended September 30, 2022
CoreInsolvencyTotal
Changes in expected future recoveries $43,262 $3,894 $47,156 
Recoveries received in excess of forecast63,893 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 $20.5 million write down during the first quarter in 2022 on one portfolio in Brazil. 		Finance Receivables, net:
Finance receivables, net consisted of the following at September 30, 2023 and December 31, 2022 (amounts in thousands):
September 30, 2023December 31, 2022
Amortized cost$— $— 
Negative allowance for expected recoveries3,460,804 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
CoreInsolvencyTotal
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
CoreInsolvencyTotal
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
CoreInsolvencyTotal
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
CoreInsolvencyTotal
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 $183,104 
The initial negative allowance recorded on portfolio acquisitions for the three months ended September 30, 2023 and 2022 was as follows (amounts in thousands):
Three Months Ended September 30, 2023
CoreInsolvencyTotal
Allowance for credit losses at acquisition$(1,535,136)$(295,524)$(1,830,660)
Writeoffs, net1,535,136 295,524 1,830,660 
Expected recoveries248,181 63,002 311,183 
Initial negative allowance for expected recoveries$248,181 $63,002 $311,183 
Three Months Ended September 30, 2022
CoreInsolvencyTotal
Allowance for credit losses at acquisition$(1,196,347)$(92,597)$(1,288,944)
Writeoffs, net1,196,347 92,597 1,288,944 
Expected recoveries160,206 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
CoreInsolvencyTotal
Recoveries (a)
$369,385 $51,994 $421,379 
Less - amounts reclassified to portfolio income179,675 10,285 189,960 
Recoveries applied to negative allowance$189,710 $41,709 $231,419 
Three Months Ended September 30, 2022
CoreInsolvencyTotal
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
CoreInsolvencyTotal
Changes in expected future recoveries $4,234 $(168)$4,066 
Recoveries received in excess of forecast11,660 6,430 18,090 
Changes in expected recoveries$15,894 $6,262 $22,156 
Three Months Ended September 30, 2022
CoreInsolvencyTotal
Changes in expected future recoveries $17,851 $2,361 $20,212 
Recoveries received in excess of forecast20,835 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.