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Finance Receivables, net (Tables)

9 Months Ended

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

X

- Definition

Tabular disclosure of allowance for credit loss on financing receivable.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479319/326-20-50-13

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 11B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481962/310-10-50-11B

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X

- References

No definition available.

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X

- 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

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