$ 126,213

$ 17,510

Deferred court costs, net

1,590,249

873,119

41,219

35,407

Receivables secured by property tax liens, net

212,814

135,100

55,783

23,223

154,783

31,535

504,213

55,446

2,685,274

^[1]

1,171,340

^[1]

Liabilities:

Deferred tax liabilities, net

137,272

43,909

7,164

8,236

1,850,431

706,036

87,936

7,343

Redeemable noncontrolling interest

2,082,803

^[1]

765,524

^[1]

26,564

Commitments and contingencies

Stockholders' equity:

Convertible preferred stock, $.01 par value, 5,000 shares authorized, no shares issued and outstanding

Common stock, $.01 par value, 50,000 shares authorized, 25,457 shares and 23,191 shares issued and outstanding as of December 31, 2013 and December 31, 2012, respectively

255

232

Additional paid-in capital

171,819

88,029

Accumulated earnings

394,628

319,329

Accumulated other comprehensive gain (loss)

5,195

(1,774)

Total Encore Capital Group, Inc. stockholders' equity

571,897

405,816

Noncontrolling interest

4,010

Total stockholders' equity

575,907

405,816

Total liabilities, redeemable noncontrolling interest and stockholders' equity

$ 2,685,274

$ 1,171,340

[1]

The Company's consolidated assets as of December 31, 2013 included $1,106,538 of assets from its variable interest entity, or VIE, that can only be used to settle obligations of the VIE. These assets include cash and cash equivalents of $62,403; investment in receivable portfolios, net, of $620,312; property and equipment, net, of $13,755; other assets of $33,772; and goodwill of $376,296. The Company's consolidated liabilities as of December 31, 2013, included $895,792 of liabilities of its VIE, whose creditors have no recourse to the Company. These liabilities include accounts payable and accrued liabilities of $47,219; debt of $846,676; and other liabilities of $1,897. See further details of the assets and liabilities of the Company's VIE in Note 11, "Variable Interest Entity."

Consolidated Statements of Financial Condition (Parenthetical) (USD $)
In Thousands, except Per Share data, unless otherwise specified

Dec. 31, 2013

Dec. 31, 2012

Convertible preferred stock, par value

$ 0.01

Convertible preferred stock, shares authorized

5,000

Convertible preferred stock, shares issued

Convertible preferred stock, shares outstanding

Common stock, par value

$ 0.01

Common stock, shares authorized

50,000

Common stock, shares issued

25,457

23,191

Common stock, shares outstanding

25,457

23,191

$ 2,685,274

^[1]

$ 1,171,340

^[1]

126,213

17,510

1,590,249

873,119

55,783

23,223

154,783

31,535

504,213

55,446

2,082,803

^[1]

765,524

^[1]

137,272

43,909

87,936

7,343

1,850,431

706,036

Janus Holdings [Member]

1,106,538

62,403

620,312

13,755

33,772

376,296

895,792

47,219

1,897

Ownership, Description of Business, and Summary of Significant Accounting Policies

$ 846,676

[1]

Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Revenues
Revenue from receivable portfolios, net	$ 744,870	$ 545,412	$ 448,714
Other revenues	12,588	905	32
Net interest income	15,906	10,460
Total revenues	773,364	556,777	448,746
Operating expenses
Salaries and employee benefits	165,040	101,084	77,805
Cost of legal collections	186,959	168,703	157,050
Other operating expenses	66,649	48,939	35,708
Collection agency commissions	33,097	15,332	14,162
General and administrative expenses	109,713	61,798	39,760
Depreciation and amortization	13,547	5,840	4,081
Total operating expenses	575,005	401,696	328,566
Income from operations	198,359	155,081	120,180
Other (expense) income
Interest expense	(73,269)	(25,564)	(21,116)
Other (expense) income	(4,222)	808	(395)
Total other expense	(77,491)	(24,756)	(21,511)
Income from continuing operations before income taxes	120,868	130,325	98,669
Provision for income taxes	(45,388)	(51,754)	(38,076)
Income from continuing operations	75,480	78,571	60,593
(Loss) income from discontinued operations, net of tax	(1,740)	(9,094)	365
Net (loss) income	73,740	69,477	60,958
Net loss	1,559
Net income attributable to Encore Capital Group, Inc. stockholders	75,299	69,477	60,958
Amounts attributable to Encore Capital Group, Inc.:
Income from continuing operations	77,039	78,571	60,593
(Loss) income from discontinued operations, net of tax	(1,740)	(9,094)	365
Net income attributable to Encore Capital Group, Inc. stockholders	$ 75,299	$ 69,477	$ 60,958
Basic earnings (loss) per share from:
Continuing operations	$ 3.12	$ 3.16	$ 2.47
Discontinued operations	$ (0.07)	$ (0.36)	$ 0.01
Net basic earnings per share	$ 3.05	$ 2.80	$ 2.48
Diluted earnings (loss) per share from:
Continuing operations	$ 2.94	$ 3.04	$ 2.36
Discontinued operations	$ (0.07)	$ (0.35)	$ 0.01
Net diluted earnings per share	$ 2.87	$ 2.69	$ 2.37
Weighted average shares outstanding:
Basic	24,659	24,855	24,572
Diluted	26,204	25,836	25,690

Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 73,740	$ 69,477	$ 60,958
Other comprehensive (loss) gain, net of tax:
Unrealized (loss) gain on derivative instruments	(817)	194	(2,119)
Unrealized gain on foreign currency translation	7,692
Other comprehensive gain (loss), net of tax	6,875	194	(2,119)
Comprehensive income	80,615	69,671	58,839
Comprehensive loss (gain) attributable to noncontrolling interest:
Net loss	1,559
Unrealized gain on foreign currency translation	(1,398)
Comprehensive loss attributable to noncontrolling interests	161
Comprehensive income attributable to Encore Capital Group, Inc. stockholders	$ 80,776	$ 69,671	$ 58,839

Consolidated Statements of Stockholders' Equity (USD $) In Thousands, unless otherwise specified	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Earnings [Member]	Accumulated Other Comprehensive (Loss) Income [Member]	Noncontrolling Interests [Member]
Balance at Dec. 31, 2010	$ 302,697	$ 240	$ 113,412	$ 188,894	$ 151
Balance, Shares at Dec. 31, 2010		24,011
Net income (loss)	60,958			60,958
Other comprehensive gain/loss, net of tax:
Unrealized gain/loss on derivative instruments	(2,119)				(2,119)
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes	(2,400)	5	(2,405)
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes, Shares		509
Stock-based compensation	7,709		7,709
Tax benefit related to stock-based compensation	4,690		4,690
Balance at Dec. 31, 2011	371,535	245	123,406	249,852	(1,968)
Balance, Shares at Dec. 31, 2011		24,520
Net income (loss)	69,477			69,477
Other comprehensive gain/loss, net of tax:
Unrealized gain/loss on derivative instruments	194				194
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes	(1,122)	5	(1,127)
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes, Shares		534
Repurchase of common stock	(49,270)	(18)	(49,252)
Repurchase of common stock, Shares		(1,863)
Stock-based compensation	8,794		8,794
Tax benefit related to stock-based compensation	3,926		3,926
Issuance of convertible notes, net	13,923		13,923
Purchase of convertible hedge and sale of warrants, net	(11,641)		(11,641)
Balance at Dec. 31, 2012	405,816	232	88,029	319,329	(1,774)
Balance, Shares at Dec. 31, 2012		23,191
Net income (loss)	73,740			75,299		(392)
Other comprehensive gain/loss, net of tax:
Unrealized gain/loss on derivative instruments	(817)				(817)
Unrealized gain on foreign currency translation (excluding $1,047 attributable to redeemable noncontrolling interests)	8,137				7,786	351
Initial noncontrolling interests related to business combinations	4,051					4,051
Change in fair value of redeemable noncontrolling interests	(1,167)		(1,167)
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes	(4,967)	6	(4,973)
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes, Shares		618
Repurchase of common stock	(729)		(729)
Repurchase of common stock, Shares		(24)
Issuance of common stock	62,352	17	62,335
Issuance of common stock, Shares		1,672
Stock-based compensation	12,649		12,649
Tax benefit related to stock-based compensation	5,420		5,420
Issuance of convertible notes, net	31,024		31,024
Purchase of convertible hedge and sale of warrants, net	(20,769)		(20,769)
Balance at Dec. 31, 2013	$ 571,897	$ 255	$ 171,819	$ 394,628	$ 5,195	$ 4,010
Balance, Shares at Dec. 31, 2013		25,457

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Operating activities:
Net income	$ 73,740	$ 69,477	$ 60,958
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13,547	5,840	4,661
Impairment charge for goodwill and identifiable intangible assets		10,400
Amortization of loan costs and premium on receivables secured by tax liens	6,715	3,268	1,833
Stock-based compensation expense	12,649	8,794	7,709
Recognized loss on termination of derivative contract	3,630
Deferred income taxes	(28,188)	(7,474)	(1,917)
Excess tax benefit from stock-based payment arrangements	(5,609)	(4,123)	(5,101)
Loss on sale of discontinued operations		2,416
(Reversal) provision for allowances on receivable portfolios, net	(12,193)	(4,221)	10,823
Changes in operating assets and liabilities
Deferred court costs and other assets	(11,697)	2,893	(4,169)
Prepaid income tax and income taxes payable	(468)	7,060	6,495
Accounts payable, accrued liabilities and other liabilities	22,649	4,190	3,287
Net cash provided by operating activities	74,775	98,520	84,579
Investing activities:
Cash paid for acquisition, net of cash acquired	(449,024)	(186,731)
Purchases of receivable portfolios, net of put-backs	(249,562)	(559,259)	(383,998)
Collections applied to investment in receivable portfolios, net	546,366	406,815	301,474
Originations and purchases of receivables secured by tax liens	(116,960)	(34,036)
Collections applied to receivables secured by tax liens	70,573	35,706
Purchases of property and equipment	(13,423)	(6,265)	(5,564)
Other	(5,210)
Net cash used in investing activities	(217,240)	(343,770)	(88,088)
Financing activities:
Payment of loan costs	(17,207)	(12,359)	(840)
Proceeds from credit facilities	659,940	508,399	121,000
Repayment of credit facilities	(630,163)	(289,673)	(143,000)
Proceeds from senior secured notes	151,670		25,000
Repayment of senior secured notes	(13,750)	(2,500)
Proceeds from issuance of convertible senior notes	172,500	115,000
Repayment of preferred equity certificates	(39,743)
Purchases of convertible hedge instruments	(32,008)	(22,669)
Proceeds from sale of warrants		11,028
Repurchase of common stock	(729)	(49,270)
Proceeds from exercise of stock options	4,442	1,847	1,263
Taxes paid related to net share settlement of equity awards	(9,591)	(2,969)	(3,891)
Excess tax benefit from stock-based payment arrangements	5,609	4,123	5,101
Repayment of capital lease obligations	(4,990)	(6,244)	(3,982)
Net cash provided by financing activities	245,980	254,713	651
Net increase (decrease) in cash and cash equivalents	103,515	9,463	(2,858)
Effect of exchange rate changes on cash	5,118
Cash and cash equivalents, beginning of period	17,510	8,047	10,905
Cash and cash equivalents, end of period	126,213	17,510	8,047
Supplemental disclosures of cash flow information:
Cash paid for interest	50,181	25,218	19,038
Cash paid for income taxes	66,759	46,297	32,125
Supplemental schedule of non-cash investing and financing activities:
Fixed assets acquired through capital lease	$ 5,011	$ 5,287	$ 2,949

Ownership, Description of Business, and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Note 1: Ownership, Description of Business, and Summary of Significant Accounting Policies

Encore Capital Group, Inc. (“Encore”), through its subsidiaries (collectively, the “Company”), is an international specialty finance company providing debt recovery solutions for consumers and property owners across a broad range of financial assets. The Company purchases portfolios of defaulted consumer receivables at deep discounts to face value and manages them by working with individuals as they repay their obligations and work toward financial recovery. Defaulted receivables are consumers’ unpaid financial commitments to credit originators, including banks, credit unions, consumer finance companies, commercial retailers, and telecommunication companies. Defaulted receivables may also include receivables subject to bankruptcy proceedings. Encore, through certain subsidiaries, is a market leader in portfolio purchasing and recovery in the United States. Encore’s subsidiary, Janus Holdings Luxembourg S.a.r.l. (“Janus Holdings”), through its indirectly held United Kingdom-based subsidiary Cabot Credit Management Limited (“Cabot”), is a market leader in debt management in the United Kingdom specializing in higher balance, “semi-performing” accounts. Encore’s majority-owned subsidiary, Refinancia S.A. (“Refinancia”), through its subsidiaries is a market leader in debt collection and management in Colombia and Peru. In addition, through Encore’s subsidiary, Propel Financial Services, LLC (“Propel”), the Company assists Texas and Nevada property owners who are delinquent on their property taxes by paying these taxes on behalf of the property owners in exchange for payment agreements collateralized by the existing tax liens on the property. Propel also acquires tax liens directly from taxing authorities outside of Texas and Nevada.

Portfolio Purchasing and Recovery

United States. The Company purchases receivable portfolios based on robust, account-level valuation methods and employs a suite of proprietary statistical and behavioral models across the full extent of its operations. These investments allow the Company to value portfolios accurately (and limit the risk of overpaying), avoid buying portfolios that are incompatible with its methods or goals and precisely align the accounts it purchases with its operational channels to maximize future collections. As a result, the Company has been able to realize significant returns from the receivables it acquires. The Company maintains strong relationships with many of the largest credit and telecommunication providers, and possesses one of the industry’s best collection staff retention rates.

The Company uses insights discovered during its purchasing process to build account collection strategies. The Company’s proprietary consumer-level collectability analysis is the primary determinant of whether an account will be actively serviced post-purchase. The Company continuously refines this analysis to determine the most effective collection strategy to pursue for each account it owns. After the Company’s preliminary analysis, it seeks to collect on only a fraction of the accounts it purchases, through one or more of its collection channels. The channel identification process is analogous to a funneling system, where the Company first differentiates those consumers who it believes are not able to pay from those who are able to pay. Consumers who the Company believes are financially incapable of making any payments, facing extenuating circumstances or hardships (such as medical issues), serving in the military, or currently receiving social security as their only source of income are excluded from the next step of its collection process and are designated as inactive. The remaining pool of accounts in the funnel then receives further evaluation. At that point, the Company analyzes and determines a consumer’s perceived willingness to pay. Based on that analysis, the Company will pursue collections through letters and/or phone calls to its consumers. Despite its efforts to reach consumers and work out a settlement option, only a small number of consumers who are contacted choose to engage with the Company. Those who do are often offered deep discounts on their obligations, or are presented with payment plans that are better suited to meet their daily cash flow needs. The majority of contacted consumers, however, ignore both the Company’s calls and letters, and therefore the Company must then make the difficult decision whether or not to pursue collections through legal means.

The Company continually monitors applicable changes to laws governing statutes of limitations and disclosures to consumers. The Company maintains policies, system controls, and processes designed to ensure that accounts past the applicable statute of limitations do not get placed into legal collections. Additionally, in written and verbal communications with consumers, the Company provides disclosures to the consumer that the account is past its applicable statute of limitations and, therefore, the Company will not pursue collections through legal means.

United Kingdom. Through Cabot, portfolio receivables are purchased using a proprietary pricing model. This model allows Cabot to value portfolios with a high degree of accuracy and quantify portfolio performance in order to maximize future collections. As a result, Cabot has been able to realize significant returns from the assets it has acquired. Cabot maintains strong relationships with many of the largest financial service providers in the United Kingdom.

Cabot also uses insights discovered during its purchasing process to build account collection strategies. Cabot’s proprietary consumer-level collectability analysis is the primary determinant of how an account will be serviced post-purchase. Cabot continuously refines this analysis to determine the most effective collection strategy to pursue for each account it owns. In recent years, Cabot has concentrated on buying portfolios that are defined as semi-performing in which over 50% of the accounts in a portfolio have made a payment in three of the last four months immediately prior to the portfolio purchase. Cabot will try to establish contact with these consumers in order to transfer payment arrangements and gauge the willingness of these consumers to pay. Consumers who Cabot believes are financially incapable of making any payments, those having negative disposable income, or those experiencing hardships (such as medical issues or mental incapacity), are placed on hold and managed outside of normal collections routines.

The remaining pool of accounts then receives further evaluation. Cabot analyzes and estimates a consumer’s perceived willingness to pay. Based on that analysis, Cabot pursues collections through letters and/or phone calls to its consumers. Where contact is made and consumers indicate a willingness to pay, a patient approach of forbearance is applied using regulatory protocols within the United Kingdom to assess affordability and ensure that plans are fair and balanced and therefore sustainable.

Where consumers are not locatable or refuse to engage in a constructive dialogue, Cabot will pass these accounts through a litigation scorecard and rule set in order to assess suitability for legal action.

Colombia and Peru. The Company’s newly acquired Refinancia subsidiary is a market leader in management of non-performing loans in Colombia and Peru. In addition to purchasing defaulted receivables, Refinancia offers portfolio management services to banks for non-performing loans. Refinancia also specializes in non-traditional niches in the geographic areas in which it operates, including providing financial solutions to individuals with defaulted credit records, payment plan guarantee services through merchants and loan guarantee services to financial institutions.

Tax Lien Business

Propel’s principal activities are the acquisition and servicing of residential and commercial tax liens on real property. These liens take priority over most other liens. By funding tax liens, Propel provides state and local taxing authorities and governments with much needed tax revenue. To the extent permitted by local law, Propel works with property owners to structure affordable payment plans designed to allow them to keep their property while paying their property tax obligation over time. Propel maintains a foreclosure rate of less than one-half of one percent.

Propel’s receivables secured by property tax liens include Texas tax liens, Nevada tax liens, and tax lien certificates (collectively, “Tax Liens”). With Texas and Nevada Tax Liens, Texas or Nevada property owners choose to have the taxing authority transfer their tax lien to Propel. Propel pays their tax lien obligation to the taxing authority and the property owner pays Propel over time at a lower interest rate than is being assessed by the taxing authority. Propel’s arrangements with Texas and Nevada property owners provide them with repayment plans that are both affordable and flexible when compared with other payment options. Propel also purchases Tax Liens in various other states directly from taxing authorities, securing rights to future property tax payments, interest and penalties. In most cases, such Tax Liens continue to be serviced by the taxing authority. When the taxing authority is paid, it repays Propel the outstanding balance of the lien plus interest, which is established by statute or negotiated at the time of the purchase.

Basis of Consolidation

The consolidated financial statements have been prepared in conformity with GAAP, and reflect the accounts and operations of the Company and those of its subsidiaries in which the Company has a controlling financial interest. The Company also consolidates Variable Interest Entities (“VIE”), for which it is the primary beneficiary. The primary beneficiary has both (a) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance, and (b) the obligation to absorb losses or the right to receive benefits. The Company has determined that its less than wholly owned subsidiary Janus Holdings is a VIE, and the Company is the primary beneficiary of the VIE. As a result, the financial results of Janus Holdings are consolidated under the VIE consolidation model. Refer to Note 11, “Variable Interest Entity,” for further details. The Company evaluates its relationships with the VIE on an ongoing basis to ensure that it continues to be the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation.

On July 1, 2013, the Company completed its acquisition of Cabot. The consolidated statements of income and comprehensive income for the year ended December 31, 2013, include the results of operations of Cabot’s parent Company, Janus Holdings, since the date of acquisition. On June 13, 2013, the Company completed its merger with Asset Acceptance Capital Corp. (“AACC”). The consolidated statements of income and comprehensive income for the year ended December 31, 2013, include the results of operations of AACC since the date of acquisition. On May 8, 2012, the Company completed its acquisition of Propel. The consolidated statements of income and comprehensive income for the year ended December 31, 2012, include the results of operations of Propel since the date of acquisition. Refer to Note 3, “Business Combinations,” for further details.

Translation of Foreign Currencies

The financial statements of certain of the Company’s foreign subsidiaries are measured using their local currency as the functional currency. Assets and liabilities are translated as of the end of the balance sheet date and revenue and expenses are translated at an average rate over the period. Currency translation adjustments are recorded as a component of other comprehensive income. Transaction gains and losses are included in other (expense) income.

Reclassifications

Certain immaterial amounts in the 2012 and 2011 consolidated financial statements have been reclassified to conform to the 2013 presentation.

Use of Estimates

The preparation of financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents consist of highly liquid investments with maturities of three months or less at the date of purchase. The Company invests its excess cash in bank deposits and money market instruments, which are afforded the highest ratings by nationally recognized rating firms. The carrying amounts reported in the consolidated statements of financial condition for cash and cash equivalents approximate their fair value.

Investment in Receivable Portfolios

In accordance with the authoritative guidance for loans and debt securities acquired with deteriorated credit quality, discrete receivable portfolio purchases during a quarter are aggregated into pools based on common risk characteristics. Once a static pool is established, the portfolios are permanently assigned to the pool. The discount (i.e., the difference between the cost of each static pool and the related aggregate contractual receivable balance) is not recorded because the Company expects to collect a relatively small percentage of each static pool’s contractual receivable balance. As a result, receivable portfolios are recorded at cost at the time of acquisition. The purchase cost of the portfolios includes certain fees paid to third parties incurred in connection with the direct acquisition of the receivable portfolios.

In compliance with the authoritative guidance, the Company accounts for its investments in consumer receivable portfolios using either the interest method or the cost recovery method. The interest method applies an internal rate of return (“IRR”) to the cost basis of the pool, which remains unchanged throughout the life of the pool, unless there is an increase in subsequent expected cash flows. Subsequent increases in expected cash flows are generally recognized prospectively through an upward adjustment of the pool’s IRR over its remaining life. Subsequent decreases in expected cash flows do not change the IRR, but are recognized as an allowance to the cost basis of the pool, and are reflected in the consolidated statements of income as a reduction in revenue, with a corresponding valuation allowance, offsetting the investment in receivable portfolios in the consolidated statements of financial condition.

The Company accounts for each static pool as a unit for the economic life of the pool (similar to one loan) for recognition of revenue from receivable portfolios, for collections applied to the cost basis of receivable portfolios and for provision for loss or allowance. Revenue from receivable portfolios is accrued based on each pool’s IRR applied to each pool’s adjusted cost basis. The cost basis of each pool is increased by revenue earned and decreased by gross collections and portfolio allowances.

If the amount and timing of future cash collections on a pool of receivables are not reasonably estimable, the Company accounts for such portfolios on the cost recovery method (“Cost Recovery Portfolios”). The accounts in these portfolios have different risk characteristics than those included in other portfolios acquired during the same quarter, or the necessary information was not available to estimate future cash flows and, accordingly, they were not aggregated with other portfolios. See Note 6 “Investment in Receivable Portfolios, Net” for further discussion of investment in receivable portfolios.

Goodwill and Other Intangible Assets

Goodwill represents the excess of purchase price over the value assigned to the tangible and identifiable intangible assets, liabilities assumed, and noncontrolling interests of businesses acquired. Acquired intangible assets other than goodwill are amortized over their useful lives unless the lives are determined to be indefinite. In accordance with authoritative guidance on goodwill and other intangible assets, goodwill and other indefinite-lived intangible assets are tested at the reporting unit level annually for impairment and in interim periods if certain events occur indicating the fair value of a reporting unit may be below its carrying value.

See Note 16 “Goodwill and Identifiable Intangible Assets” for further discussion of the Company’s goodwill and other intangible assets.

Property and Equipment

Property and equipment are recorded at cost, less accumulated depreciation and amortization. The provision for depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets as follows:


Fixed Asset Category		Estimated Useful Life
Leasehold improvements		Lesser of lease term, including periods covered by renewal options, or useful life
Furniture, fixtures and equipment		5 to 10 years
Computer hardware and software		3 to 5 years

Maintenance and repairs are charged to expense in the year incurred. Expenditures for major renewals that extend the useful lives of fixed assets are capitalized and depreciated over the useful lives of such assets.

Deferred Court Costs

The Company contracts with a nationwide network of attorneys that specialize in collection matters. The Company generally refers charged-off accounts to its contracted attorneys when it believes the related consumer has sufficient assets to repay the indebtedness and has, to date, been unwilling to pay. In connection with the Company’s agreement with the contracted attorneys, it advances certain out-of-pocket court costs (“Deferred Court Costs”). The Company capitalizes these costs in its consolidated financial statements and provides a reserve for those costs that it believes will ultimately be uncollectible. The Company determines the reserve based on its analysis of court costs that have been advanced and those that have been recovered. Historically, the Company wrote off Deferred Court Costs not recovered within three years of placement. However, as a result of a history of court cost recoveries beyond three years, the Company has determined that court costs are recovered over a longer period of time. As a result, in January 2013, on a prospective basis, the Company began increasing its deferral period from three years to five years. Collections received from debtors are first applied to related court costs with the balance applied to the debtors’ account. See Note 7 “Deferred Court Costs, Net” for further discussion.

Receivables Secured by Property Tax Liens, Net

Propel’s receivables are secured by Tax Liens. Repayment of the Tax Liens is generally dependent on the property owner but can also come through payments from other lien holders or foreclosure on the properties. Propel records these receivables secured by property tax liens at their outstanding principal balances, adjusted for, if any, charge-offs, allowance for losses, deferred fees or costs, and unamortized premiums or discounts. Interest income is reported on the interest method and includes amortization of net deferred fees and costs over the term of the agreements. Propel accrues interest on all past due receivables secured by tax liens as the receivables are collateralized by tax liens that are in a priority position over most other liens on the properties. If there is doubt about the ultimate collection of the accrued interest on a specific portfolio, it would be placed on non-accrual and, at that time, all accrued interest would be reversed.

The allowance for losses on receivables secured by property tax liens is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability in light of historical experience, the nature and volume of the receivable portfolios, adverse situations that may affect the borrower’s ability to repay, the estimated value of the underlying collateral and prevailing economic conditions. The primary factor Propel uses to evaluate each receivable is the lien to value ratio, which is typically less than 15% and rarely exceeds 25%. Propel has not experienced any losses on receivables secured by Tax Liens in its portfolio. In addition, management believes, based on the fact that the Tax Liens are in a priority position over most other liens on the properties, that it will not experience any material losses on the ultimate collection of these receivables. Therefore, no allowance has been provided for as of December 31, 2013.

Income Taxes

The Company uses the liability method of accounting for income taxes in accordance with the authoritative guidance for Income Taxes. When the Company prepares its consolidated financial statements, it estimates income taxes based on the various jurisdictions and countries where it conducts business. This requires the Company to estimate current tax exposure and to assess temporary differences that result from differing treatments of certain items for tax and accounting purposes. Deferred income taxes are recognized based on the differences between the financial statement and income tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company then assesses the likelihood that deferred tax assets will be realized. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. When the Company establishes a valuation allowance or increases this allowance in an accounting period, it records a corresponding tax expense in the consolidated statement of operations. The Company includes interest and penalties related to income taxes within its provision for income taxes. See Note 13 “Income Taxes” for further discussion.

Management must make significant judgments to determine the provision for income taxes, deferred tax assets and liabilities, and any valuation allowance to be recorded against deferred tax assets.

Stock-Based Compensation

The Company determines stock-based compensation expense for all share-based payment awards based on the measurement date fair value. The Company recognizes compensation cost only for those awards expected to meet the service and performance vesting conditions over the requisite service period of the award. Forfeiture rates are estimated based on the Company’s historical experience. See Note 12 “Stock-Based Compensation” for further discussion.

Derivative Instruments and Hedging Activities

The Company recognizes all derivative financial instruments in its consolidated financial statements at fair value. Changes in the fair value of derivative instruments are recorded in earnings unless hedge accounting criteria are met. The Company designates its interest rate swap and foreign currency exchange contracts as cash flow hedges. The effective portion of the changes in fair value of these cash flow hedges is recorded each period, net of tax, in accumulated other comprehensive income (loss) until the related hedged transaction occurs. Any ineffective portion of the changes in fair value of these cash flow hedges is recorded in earnings. In the event the hedged cash flow does not occur, or it becomes probable that it will not occur, the Company would reclassify the amount of any gain or loss on the related cash flow hedge to income (expense) at that time. See Note 5 “Derivatives and Hedging Instruments” for further discussion.

Redeemable Noncontrolling Interests

Some minority shareholders in certain subsidiaries of the Company have the right, at certain times, to require the Company to acquire their ownership interest in those entities at fair value, while others have the right to force a sale of the subsidiary if the Company chooses not to purchase their interests at fair value. The noncontrolling interests subject to these arrangements are included in temporary equity as redeemable noncontrolling interests, and are adjusted to their estimated redemption amounts each reporting period with a corresponding adjustment to additional paid-in capital. Future reductions in the carrying amounts are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interests at the time they were originally recorded. The recorded value of the redeemable noncontrolling interests cannot go below the floor level. These adjustments will not affect the calculation of earnings per share.

Earnings Per Share

Basic earnings per share is calculated by dividing net earnings attributable to Encore by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is calculated on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options, restricted stock, and the dilutive effect of the convertible senior notes.

A reconciliation of shares used in calculating earnings per basic and diluted shares follows (in thousands):


	Year Ended December 31,
	2013		2012		2011
Weighted average common shares outstanding—basic		24,659		24,855		24,572
Dilutive effect of stock-based awards		950		981		1,118
Dilutive effect of convertible senior notes		595		—		—

Weighted average common shares outstanding—diluted		26,204		25,836		25,690

No anti-dilutive employee stock options were outstanding during the year ended December 31, 2013. Employee stock options to purchase approximately 352,000, and 167,000 shares of common stock as of December 31, 2012 and 2011, respectively, were outstanding but not included in the computation of diluted earnings per common share because the effect on diluted earnings per share would be anti-dilutive.

For the year ended December 31, 2013, diluted earnings per share includes the effect of common shares issuable upon conversion of the Company’s $115.0 million convertible senior notes due 2017. During the period, the notes were convertible at a conversion price equivalent to approximately $31.56 per share of the Company’s common stock as a result of the conditions of the notes. As a result, the amount in excess of the principal is presumed to be settled in common shares and is reflected in the calculation of diluted earnings per share.

During the fourth quarter of 2012, concurrent with the issuance of its $115.0 million convertible senior notes due 2017, the Company entered into privately negotiated transactions with certain counterparties and sold warrants to purchase approximately 3.6 million shares of its common stock. The sold warrants had an exercise price of $44.19. On December 16, 2013, the Company entered into amendments with the same counterparties to exchange the original warrants with new warrants with an exercise price of $60.00. All other terms and settlement provisions remain unchanged. Warrants representing approximately 358,000 shares of the Company’s common stock have been modified by December 31, 2013. The remaining 3.2 million shares represented by the warrants were modified between January 1, 2014 and February 6, 2014. Refer to Note 10 “Debt—Encore Convertible Senior Notes—2017 Convertible Senior Notes” for further details of the warrant restrike transaction.

The average market value of the Company’s shares did not exceed the exercise price of the original or new warrants during the year ended December 31, 2013 or 2012, and therefore the effect of the warrants was anti-dilutive for those periods.

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

Discontinued Operations And Disposal Groups [Abstract]

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Discontinued Operations

12 Months Ended

Dec. 31, 2013

Discontinued Operations

Note 2: Discontinued Operations

On May 16, 2012, the Company completed the sale of substantially all of the assets and certain of the liabilities of its bankruptcy servicing subsidiary Ascension Capital Group, Inc. (“Ascension”), to a subsidiary of American InfoSource, L.P. (“AIS”). As part of the sale, the Company agreed to fund certain, agreed-upon operating losses in the first year of AIS’ ownership of the Ascension business, not to exceed $4.0 million. If the Ascension business becomes profitable under AIS’ ownership, the Company will be paid an earn-out equal to 40% of Ascension’s EBITDA, for the first five years commencing May 16, 2012. The Company received no proceeds from the sale and recognized the entire $4.0 million loss contingency during the second quarter of 2012.

During the year ended December 31, 2013, the Company recognized a loss of $2.2 million incurred to resolve legacy contractual claims against Ascension by a former customer. Additionally, during the year the Company accrued a loss of $0.7 million related to the Ascension lease which remains an obligation of the Company. Ascension’s operations are presented as discontinued operations in the Company’s consolidated statements of income and comprehensive income. The following table presents the revenue and components of discontinued operations (in thousands):


	Year Ended December 31,
	2013			2012			2011
Revenue	$	—		$	5,704		$	18,626

(Loss) income from discontinued operations before income taxes	$	(2,900	)	$	(11,942	)	$	595
Income tax benefit (expense)		1,160			4,678			(230	)

(Loss) income from discontinued operations		(1,740	)		(7,264	)		365

Loss on sale of discontinued operations, before income taxes		—			(2,416	)		—
Income tax benefit		—			586			—

Loss on sale of discontinued operations		—			(1,830	)		—

Total (loss) income from discontinued operations	$	(1,740	)	$	(9,094	)	$	365

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

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+ Details

Business Combinations

12 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

Business Combinations

Note 3: Business Combinations

Cabot Acquisition

On July 1, 2013, the Company, through its wholly owned subsidiary Encore Europe Holdings S.a.r.l. (“Encore Europe”), completed its acquisition (the “Cabot Acquisition”) of 50.1% of the equity interest in Janus Holdings, the indirect holding company of United Kingdom-based Cabot from certain funds advised by J.C. Flowers & Co. LLC (“J.C. Flowers”) pursuant to a Securities Purchase Agreement (as amended, the “Purchase Agreement”). Pursuant to the terms and conditions of the Purchase Agreement, Encore Europe purchased from J.C. Flowers: (i) E Bridge preferred equity certificates issued by Janus Holdings, with a face value of £10,218,574 (approximately $15.5 million) (and any accrued interest thereof) (the “E Bridge PECs”), (ii) E preferred equity certificates issued by Janus Holdings with a face value of £96,729,661 (approximately $147.1 million) (and any accrued interest thereof) (the “E PECs”), (iii) 3,498,563 E shares of Janus Holdings (the “E Shares”), and (iv) 100 A shares of Cabot Holdings S.a.r.l. (“ Cabot Holdings”), the direct subsidiary of Janus Holdings, for an aggregate purchase price of approximately £115.1 million (approximately $175.0 million). The E Bridge PECs, E PECs, and E Shares represent 50.1% of all of the issued and outstanding equity and debt securities of Janus Holdings. The remaining 49.9% of Janus Holdings’ equity and debt securities are owned by J.C. Flowers and include: (a) J Bridge preferred equity certificates with a face value of £10,177,781 (approximately $15.5 million) (the “J Bridge PECs”) (represents the amount after the partial redemption of the J Bridge PECs contemplated in the Purchase Agreement and discussed in Note 10, “Debt”), (b) J preferred equity certificates with a face value of £96,343,515 (approximately $146.5 million) (the “J PECs”), (c) 3,484,597 J shares of Janus Holdings (the “J Shares”), and (d) 100 A shares of Cabot Holdings.

Through its acquisition of Janus Holdings, the Company’s effective equity ownership of Cabot is approximately 42.9%, after reflecting the ownership of the noncontrolling interests. The E Bridge PECs and the J Bridge PECs may be redeemed at any time prior to June 18, 2014. Any E Bridge PECs and J Bridge PECs that remain unredeemed as of June 18, 2014 will be converted into E Shares and E PECs, or J Shares and J PECs, as the case may be, in proportion to the number of E Shares and E PECs, or J Shares and J PECs, as applicable, outstanding on the closing date of the Cabot Acquisition. The E Bridge PECs, E PECs, J Bridge PECs and J PECs accrue interest at 12% per annum.

The following diagram summarizes Cabot’s corporate structure after the Company’s completion of the Cabot Acquisition. Encore has no interest in the J.C. Flowers entities or the employee benefit trust and they are not included in the Company’s consolidated financial statements.

The Cabot Acquisition was accounted for using the acquisition method of accounting and, accordingly, the tangible and intangible assets acquired and liabilities assumed were recorded at their estimated fair values as of the date of the acquisition. Fair value measurements have been applied based on assumptions that market participants would use in the pricing of the respective assets and liabilities.

The components of the purchase price allocation for the Cabot Acquisition are as follows (in thousands):


Purchase price:
Cash paid at acquisition	$	177,246

Allocation of purchase price:
Cash	$	57,520
Investment in receivable portfolios		558,951
Property and equipment		13,672
Other assets		20,349
Preferred equity certificates assumed		(211,549	)
Debt assumed		(559,907	)
Other liabilities assumed		(45,142	)
Redeemable noncontrolling interests		(12,064	)
Noncontrolling interests		(4,051	)
Identifiable intangible assets		7,559
Goodwill		351,908

Total net assets acquired	$	177,246

The goodwill recognized is primarily attributable to (i) the ability to capitalize on Cabot’s existing operating platform to gain immediate access to the debt management business in Europe and (ii) substantial synergies that are expected to be achieved through Cabot’s ability to leverage the Company’s analytic capacities and efficient operating platform. The entire goodwill of $351.9 million related to the Cabot Acquisition is not deductible for income tax purposes.

As discussed above, the Company purchased a majority interest in Janus Holdings. The Company has determined that Janus Holdings is a VIE and the Company is the primary beneficiary of the VIE. In accordance with authoritative guidance, the Company consolidates the financial results of Janus Holdings under the VIE consolidation model. The J Bridge PECs, J PECs, and any accrued interest are legal form debt, and are included as debt in the Company’s consolidated financial statements. In addition, certain other minority owners hold preferred equity certificates at the Cabot Holdings level. These preferred equity certificates and accrued interests are also included as debt. The Company’s preliminary valuation study indicated that the fair value of these preferred equity certificates approximates face value. The J shares represent noncontrolling interest at the Janus Holdings level, and the 100 A shares owned by J.C. Flowers represent noncontrolling interest at the Cabot Holdings level, and have been fair valued at the time of acquisition.

In connection with the Cabot Acquisition, the Company entered into an Investors Agreement with J.C. Flowers. Pursuant to the Investors Agreement, J.C. Flowers has the right, at certain times, to offer to sell its interest in Janus Holdings to the Company. The Company would then have the right, but not the obligation, to acquire J.C. Flowers’ interest at the offered price, or allow J.C. Flowers to offer Janus Holdings for sale to others. Since J.C. Flowers could force a sale of Janus Holdings, their noncontrolling interest has been reflected as a redeemable noncontrolling interest in the accompanying consolidated statements of financial condition. The remaining noncontrolling interests represent other minority owners’ share of interests in Cabot Holdings.

Total acquisition and integration costs related to the Cabot Acquisition were approximately $6.7 million for the year ended December 31, 2013, and have been expensed in the accompanying consolidated statements of income within general and administrative expenses.

The amount of revenue and net income included in the Company’s consolidated statement of income for the year ended December 31, 2013, directly related to the Cabot Acquisition, excluding the acquisition and integration costs, was $95.5 million and $9.0 million, respectively. The revenue and loss for the year ended December 31, 2013 at Janus Holdings was $95.5 million and $2.3 million, respectively. This loss is due to the fact that Janus Holdings recognizes all interest expense related to the outstanding preferred equity certificates owed to Encore, J.C. Flowers, and management. The loss attributable to noncontrolling interests included in the Company’s consolidated statement of income of $1.2 million for the year ended December 31, 2013 represents the total loss at Janus Holdings of $2.8 million multiplied by the noncontrolling ownership interest. The difference of $11.4 million between what was included in the Company’s financial statements and what was reported by Janus Holdings, represents Encore’s share of preferred equity certificate interest income recognized at Encore Europe and the loss attributable to noncontrolling interests.

The following table summarizes the operating performance of Janus Holdings and Encore Europe (in thousands):


	Year Ended December 31, 2013
	Janus Holdings			Encore Europe		Encore Europe Consolidated
Total revenues	$	95,491		$	—	$	95,491
Total operating expenses		(48,890	)		—		(48,890	)

Income from operations		46,601			—		46,601

Interest expense—non-PEC		(26,265	)		—		(26,265	)
PEC interest (expense) income		(21,616	)		10,235		(11,381	)
Other income		98			—		98

(Loss) income before income taxes		(1,182	)		10,235		9,053
Provision for income taxes		(1,574	)		—		(1,574	)

Net (loss) income		(2,756	)		10,235		7,479
Net loss attributable to noncontrolling interests		392			1,167		1,559

Net (loss) income attributable to Encore	$	(2,364	)	$	11,402	$	9,038

On February 7, 2014, Cabot, through a wholly-owned subsidiary, acquired all of the equity interest of Marlin Financial Group Limited, (“Marlin”), a leading acquirer of non-performing consumer debt in the United Kingdom, for an aggregate purchase price of approximately £295.0 million (approximately $481.0 million). The Acquisition was financed with borrowings under Cabot’s existing revolving credit facility and under new senior secured bridge facilities. Refer to Note 18, “Subsequent Events” for additional details related to the acquisition of Marlin and the new senior secured bridge facilities.

AACC Merger

On June 13, 2013, the Company completed its merger with AACC (the “AACC Merger”), a leading provider of debt management and recovery solutions in the United States. The purchase price consisted of $150.8 million in cash consideration and 1.7 million shares of Encore common stock valued at $37.30 per share. In addition, the Company paid off approximately $165.7 million of AACC debt on the closing date of the AACC Merger.

The AACC Merger was accounted for using the acquisition method of accounting and, accordingly, the tangible and intangible assets acquired and liabilities assumed were recorded at their estimated fair values as of the date of the merger. Fair value measurements have been applied based on assumptions that market participants would use in the pricing of the respective assets and liabilities.

The components of the purchase price allocation for the AACC Merger are as follows (in thousands):


Purchase price:
Cash paid at acquisition	$	316,485
Stock consideration		62,352

Total purchase price	$	378,837

Allocation of purchase price:
Cash	$	23,156
Investment in receivable portfolios		383,382
Deferred court costs		6,940
Property and equipment		11,003
Other assets		16,004
Liabilities assumed		(126,059	)
Identifiable intangible assets		1,470
Goodwill		62,941

Total net assets acquired	$	378,837

The entire goodwill of $62.9 million related to AACC was assigned to the Company’s portfolio purchasing reporting unit and is not deductible for income tax purposes. The goodwill recognized is primarily attributable to expected synergies when combining AACC with the Company.

Total acquisition and integration costs related to the AACC Merger were approximately $9.1 million for the year ended December 31, 2013, and were expensed in the accompanying consolidated statements of income within general and administrative expenses. The amount of revenue and net income included in the Company’s consolidated statement of income for the year ended December 31, 2013 related to AACC was $102.1 million and $14.6 million, respectively.

The following summary presents unaudited pro forma consolidated results of operations for the year ended December 31, 2013 and 2012 as if the Cabot Acquisition and AACC Merger had occurred on January 1, 2012. The following unaudited pro forma financial information does not necessarily reflect the actual results that would have occurred had Encore, Cabot, and AACC been combined during the periods presented, nor is it necessarily indicative of the future results of operations of the combined companies (in thousands):


	(Unaudited) Year Ended December 31,
	2013		2012
Consolidated pro forma revenue	$	949,337	$	929,579
Consolidated pro forma income from continuing operations		92,378		101,762

In addition to the Cabot Acquisition and AACC Merger, the Company completed certain other acquisitions including the acquisition of Refinancia in December 2013. These acquisitions were immaterial to the Company’s financial statements individually and in the aggregate, and resulted in the recording of approximately $13.5 million of initial goodwill through preliminary purchase price allocations.

Acquisition in Prior Year

On May 8, 2012, the Company acquired all of the outstanding equity interests of Propel for $186.8 million in cash. The Company recorded approximately $45.4 million of goodwill, $0.6 million of intangible assets and assumed $2.3 million of net liabilities.

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

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+ Details

Fair Value Measurements

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 4: Fair Value Measurements

The authoritative guidance for fair value measurements defines fair value as the price that would be received upon sale of an asset or the price paid to transfer a liability, in an orderly transaction between market participants at the measurement date (i.e., the “exit price”). The guidance utilizes a fair value hierarchy that prioritizes the inputs used in valuation techniques to measure fair value into three broad levels. The following is a brief description of each level:

•

Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

•

Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

•

Level 3: Unobservable inputs, including inputs that reflect the reporting entity’s own assumptions.

Financial Instruments Required To Be Carried At Fair Value

Financial assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):


	Fair Value Measurements as of December 31, 2013
	Level 1		Level 2			Level 3			Total
Assets
Foreign currency exchange contracts	$	—	$	46		$	—		$	46
Interest rate cap contracts		—		202			—			202
Liabilities
Foreign currency exchange contracts	$	—	$	(4,123	)		—		$	(4,123	)
Temporary Equity
Redeemable noncontrolling interests	$	—	$	—		$	(26,564	)	$	(26,564	)


	Fair Value Measurements as of December 31, 2012
	Level 1		Level 2			Level 3		Total
Liabilities
Interest rate swap agreements	$	—	$	(645	)	$	—	$	(645	)
Foreign currency exchange contracts		—		(2,010	)		—		(2,010	)

Derivative Contracts:

The Company uses derivative instruments to minimize its exposure to fluctuations in interest rates and foreign currency exchange rates. The Company’s derivative instruments primarily include interest rate swap agreements, interest rate cap contracts, and foreign currency exchange contracts. Fair values of these derivative instruments are estimated using industry standard valuation models. These models project future cash flows and discount the future amounts to a present value using market-based observable inputs, including interest rate curves, foreign currency exchange rates, and forward and spot prices for currencies.

Redeemable Noncontrolling Interests:

As discussed in Note 3, “Business Combinations,” some minority shareholders in certain subsidiaries of the Company, have the right, at certain times, to require the Company to acquire their ownership interest in those entities at fair value, while others have the right to force a sale of the subsidiary if the Company chooses not to purchase their interests at fair value. The noncontrolling interests subject to these arrangements are included in temporary equity as redeemable noncontrolling interests, and are adjusted to their estimated redemption amounts each reporting period with a corresponding adjustment to additional paid-in capital. Future reductions in the carrying amounts are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interests at the time they were originally recorded. The recorded value of the redeemable noncontrolling interests cannot go below the floor level. These adjustments will not affect the calculation of earnings per share. The components of the change in the redeemable noncontrolling interests for the periods ended December 31, 2013 are presented in the following table:


	Amount
Balance at December 31, 2012	$	—
Initial redeemable noncontrolling interest related to business combinations		25,517
Net loss attributable to redeemable noncontrolling interests		(1,167	)
Adjustment of the redeemable noncontrolling interests to fair value		1,167
Effect of foreign currency translation attributable to redeemable noncontrolling interests		1,047

Balance at December 31, 2013	$	26,564

Financial instruments not required to be carried at fair value

Investment in Receivable Portfolios:

The Company records its investment in receivable portfolios at cost, which represents a significant discount from the contractual receivable balances due. The Company computes the fair value of its investment in receivable portfolios by discounting the estimated future cash flows generated by its proprietary forecasting models, using an estimated market participant cost to collect of approximately 50.3% and a discount rate of approximately 12.0% for United States portfolios and an estimated market participant cost to collect of approximately 29.7% and a discount rate of approximately 18.2% for United Kingdom portfolios. Using this method, the fair value of investment in receivable portfolios approximates book value as of December 31, 2013 and 2012. A 100 basis point fluctuation in the cost to collect and discount rate used would result in an increase or decrease in the fair value by approximately $19.5 million and $18.1 million, respectively, as of December 31, 2013. This fair value calculation does not represent, and should not be construed to represent, the underlying value of the Company or the amount which could be realized if its investment in receivable portfolios were sold. The carrying value of the investment in receivable portfolios was $1.6 billion and $873.1 million as of December 31, 2013 and 2012, respectively.

Deferred Court Costs:

The Company capitalizes deferred court costs and provides a reserve for those costs that it believes will ultimately be uncollectible. The carrying value of net deferred court costs approximates fair value.

Receivables Secured By Property Tax Liens:

The fair value of receivables secured by property tax liens is estimated by discounting the future cash flows of the portfolio using a discount rate equivalent to the current rate at which similar portfolios would be originated. For certain tax liens purchased directly from taxing authorities in various other states, the fair value is estimated by discounting the expected future cash flows of the portfolio using a discount rate equivalent to the interest rate expected when acquiring these tax liens. The carrying value of receivables secured by property tax liens approximates fair value. Additionally, the carrying value of the related interest receivable also approximates fair value.

Debt:

Encore’s senior secured notes and borrowings under its revolving credit and term loan facilities are carried at historical amounts, adjusted for additional borrowings less principal repayments, which approximate fair value.

Encore’s convertible senior notes are carried at historical cost, adjusted for the debt discount. The carrying value of the convertible senior notes was $287.5 million, net of debt discount of $42.2 million, and $115.0 million, net of debt discount of $14.4 million as of December 31, 2013 and 2012, respectively. The fair value estimate for these convertible senior notes incorporates quoted market prices, which was approximately $412.4 million and $128.3 million as of December 31, 2013 and 2012, respectively.

Cabot’s senior secured notes due 2019 are carried at the fair value determined at the time of the Cabot Acquisition. Cabot’s senior secured notes due 2020 are carried at historical cost. The carrying value of the senior secured notes, including a debt premium of $43.6 million, was $646.9 million as of December 31, 2013. The fair value estimate for these convertible senior notes incorporates quoted market prices, which was approximately $680.7 million as of December 31, 2013.

The Company’s preferred equity certificates are legal obligations to the noncontrolling shareholders at its Janus Holdings and Cabot Holdings subsidiaries. They are carried at the face amount, plus any accrued interest. The Company determined, at the time of the Cabot Acquisition and at December 31, 2013, that the carrying value of these preferred equity certificates approximates fair value.

Derivative Instruments And Hedging Activities Disclosure [Abstract]

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References+ Details

Derivatives and Hedging Instruments

12 Months Ended

Dec. 31, 2013

Derivatives and Hedging Instruments

Note 5: Derivatives and Hedging Instruments

The Company may periodically enter into derivative financial instruments to manage risks related to interest rates and foreign currency. Most of the Company’s derivative financial instruments qualify for hedge accounting treatment under the authoritative guidance for derivatives and hedging. The Company’s Cabot subsidiary also holds interest rate cap contracts with an aggregated notional amount of approximately $206.6 million that are used to manage its risk related to interest rate fluctuations. The Company does not apply hedge accounting on the interest rate cap contracts. The impact of the interest rate cap contracts to the Company’s consolidated financial statements for the year ended December 31, 2013, was immaterial.

Interest Rate Swaps

As of December 31, 2013, the Company had no outstanding interest rate swap agreements. During the years ended December 31, 2013, 2012 and 2011, the Company utilized interest rate swap contracts to manage risks related to interest rate fluctuation. These derivatives were designated as cash flow hedges in accordance with authoritative accounting guidance. The hedging instruments had been highly effective since the inception of the hedge program, no gains or losses were reclassified from other comprehensive income “OCI” into earnings as a result of hedge ineffectiveness.

Foreign Currency Exchange Contracts

The Company has operations in India, which exposes the Company to foreign currency exchange rate fluctuations due to transactions denominated in Indian rupees, such as employee salaries and rent expenditures. To mitigate this risk, the Company enters into derivative financial instruments, principally forward contracts, which are designated as cash flow hedges, to mitigate fluctuations in the cash payments of future forecasted transactions in Indian rupees for up to 36 months. The Company adjusts the level and use of derivatives as soon as practicable after learning that an exposure has changed and reviews all exposures and derivative positions on an ongoing basis.

Gains and losses on cash flow hedges are recorded in OCI until the hedged transaction is recorded in the consolidated financial statements. Once the underlying transaction is recorded in the consolidated financial statements, the Company reclassifies the OCI on the derivative into earnings. If all or a portion of the forecasted transaction is cancelled, this would render all or a portion of the cash flow hedge ineffective and the Company would reclassify the ineffective portion of the hedge into earnings. The Company generally does not experience ineffectiveness of the hedge relationship and the accompanying consolidated financial statements do not include any such gains or losses.

As of December 31, 2013, the total notional amount of the forward contracts to buy Indian rupees in exchange for United States dollars was $48.0 million. As of December 31, 2013, all outstanding contracts qualified for hedge accounting treatment. The Company estimates that approximately $2.0 million of net derivative loss included in OCI will be reclassified into earnings within the next 12 months. No gains or losses were reclassified from OCI into earnings as a result of forecasted transactions that failed to occur during the years ended December 31, 2013, 2012 and 2011.

The Company may periodically enter into other foreign currency exchange contracts to mitigate its risk that cash flows and earnings will be adversely affected by foreign currency exchange rate fluctuations. In anticipation of the Cabot Acquisition, on June 7, 2013, the Company entered into a European style zero-cost collar foreign exchange contract with a notional amount of £132.1 million (approximately $206.0 million), which was equal to the anticipated purchase price for the Cabot Acquisition. The collar was set to expire on August 13, 2013, which was the anticipated date of closing of the Cabot Acquisition. The collar was used to offset the risk of changes in the foreign exchange rate relating to the purchase price for the Company’s interest in Janus Holdings. The Company did not apply hedge accounting on this foreign exchange contract. Due to the early closing of the Cabot Acquisition, the foreign exchange contract was terminated on June 28, 2013 at a loss of $3.6 million, which was recorded as other expenses in the Company’s consolidated statements of income in the second quarter of 2013 and is included in the year ended December 31, 2013. Economically, this foreign exchange loss was offset by a decrease in the estimated purchase price for Cabot of approximately $4.3 million.

The Company does not enter into derivative instruments for trading or speculative purposes.

The following table summarizes the fair value of derivative instruments as recorded in the Company’s consolidated statements of financial condition (in thousands):


	December 31, 2013					December 31, 2012
	Balance Sheet Location		Fair Value			Balance Sheet Location		Fair Value
Derivatives designated as hedging instruments:
Foreign currency exchange contracts		Other liabilities	$	(4,123	)		Other liabilities	$	(2,010	)
Foreign currency exchange contracts		Other assets		46			—		—
Interest rate swaps		—		—			Other liabilities		(645	)
Derivatives not designated as hedging instruments:
Interest rate cap		Other assets		202			—		—

The following table summarizes the effects of derivatives in cash flow hedging relationships on the Company’s statements of income for the years ended December 31, 2013 and 2012 (in thousands):


	Gain or (Loss) Recognized in OCI- Effective Portion						Location of Gain or (Loss) Reclassified from OCI into Income - Effective Portion	Gain or (Loss) Reclassified from OCI into Income - Effective Portion						Location of Gain or (Loss) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing	Amount of Gain or (Loss) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing
	2013			2012				2013			2012				2013		2012
Interest rate swaps	$	645		$	369		Interest expense	$	—		$	—		Other (expense) income	$	—	$	—
Foreign currency exchange contracts		(3,031	)		(1,224	)	Salaries and employee benefits		(1,362	)		(1,230	)	Other (expense) income		—		—
Foreign currency exchange contracts		(658	)		(25	)	General and administrative expenses		(260	)		(212	)	Other (expense) income		—		—

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

Investment in Receivable Portfolios, Net

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+ Details

Investment in Receivable Portfolios, Net

12 Months Ended

Dec. 31, 2013

Receivables [Abstract]

Note 6: Investment in Receivable Portfolios, Net

In compliance with the authoritative guidance, the Company accounts for its investments in receivable portfolios using either the interest method or the cost recovery method. The interest method applies an internal rate of return (“IRR”) to the cost basis of the pool, which remains unchanged throughout the life of the pool, unless there is an increase in subsequent expected cash flows. Subsequent increases in expected cash flows are generally recognized prospectively through an upward adjustment of the pool’s IRR over its remaining life. Subsequent decreases in expected cash flows do not change the IRR, but are recognized as an allowance to the cost basis of the pool, and are reflected in the consolidated statements of comprehensive income as a reduction in revenue, with a corresponding valuation allowance, offsetting the investment in receivable portfolios in the consolidated statements of financial condition.

The Company utilizes its proprietary forecasting models to continuously evaluate the economic life of each pool. The collection forecast of each pool is generally estimated to be between 84 to 96 months based on the expected collection period of each pool (up to 120 months for Cabot’s semi-performing pools). The Company often experiences collections beyond the 84 to 96 month collection forecast. As of December 31, 2013, the total estimated remaining collections beyond the 84 to 96 month collection forecast, which are not included in the calculation of the Company’s IRRs, were $129.8 million. The collection forecast estimates for Cabot include a 120 month collection period which is included in its estimated remaining collections and is used for calculating its IRRs.

The Company accounts for each static pool as a unit for the economic life of the pool (similar to one loan) for recognition of revenue from receivable portfolios, for collections applied to the cost basis of receivable portfolios, and for provision for loss or allowance. Revenue from receivable portfolios is accrued based on each pool’s IRR applied to each pool’s adjusted cost basis. The cost basis of each pool is increased by revenue earned and decreased by gross collections and portfolio allowances.

If the amount and timing of future cash collections on a pool of receivables are not reasonably estimable, the Company accounts for such portfolios on the cost recovery method as Cost Recovery Portfolios. The accounts in these portfolios have different risk characteristics than those included in other portfolios acquired during the same quarter, or the necessary information was not available to estimate future cash flows and, accordingly, they were not aggregated with other portfolios. Under the cost recovery method of accounting, no revenue is recognized until the purchase price of a Cost Recovery Portfolio has been fully recovered.

Accretable yield represents the amount of revenue the Company expects to generate over the remaining life of its existing investment in receivable portfolios based on estimated future cash flows. Total accretable yield is the difference between future estimated collections and the current carrying value of a portfolio. All estimated cash flows on portfolios where the cost basis has been fully recovered are classified as zero basis cash flows.

The following table summarizes the Company’s accretable yield and an estimate of zero basis future cash flows at the beginning and end of the period presented (in thousands):


	Accretable Yield			Estimate of Zero Basis Cash Flows			Total
Balance at December 31, 2011	$	821,527		$	32,676		$	854,203
Revenue recognized, net		(519,136	)		(26,276	)		(545,412	)
Net additions on existing portfolios⁽¹⁾		229,207			10,966			240,173
Additions for current purchases⁽¹⁾		453,346			—			453,346

Balance at December 31, 2012	$	984,944		$	17,366		$	1,002,310

Revenue recognized, net		(717,733	)		(27,119	)		(744,852	)
Net additions on existing portfolios⁽¹⁾		357,189			18,218			375,407
Additions for current purchases⁽¹⁾⁽²⁾		1,767,071			—			1,767,071

Balance at December 31, 2013	$	2,391,471		$	8,465		$	2,399,936

⁽¹⁾	Estimated remaining collections and accretable yield include anticipated collections beyond the 84 to 96 month collection forecast for United States portfolios.

⁽²⁾	Includes $383.4 million of portfolios acquired in connection with the AACC Merger and $559.0 million of portfolios acquired in connection with the Cabot Acquisition discussed in Note 3, “Business Combinations.”

During the year ended December 31, 2013, the Company purchased receivable portfolios with a face value of $84.9 billion for $1.2 billion, or a purchase cost of 1.4% of face value. Purchases of charged-off credit card, telecom and consumer bankruptcy portfolios include $559.0 million of portfolios acquired in conjunction with the Cabot Acquisition and $383.4 million acquired in conjunction with the AACC Merger. The lower purchase rate for the year ended December 31, 2013 is due to the portfolio acquired in conjunction with the AACC Merger, which included all portfolios owned, including accounts that have no value and which the Company has no intention to collect. No-value accounts would typically not be included in a portfolio purchase transaction, as the sellers would remove them from the sale file. The estimated future collections at acquisition for all portfolios purchased during the year amounted to $1.3 billion.

During the year ended December 31, 2012, the Company purchased receivable portfolios with a face value of $11.4 billion for $478.8 million, or a purchase cost of 4.2% of face value. The estimated future collections at acquisition for all portfolios amounted to $842.8 million.

All collections realized after the net book value of a portfolio has been fully recovered (“Zero Basis Portfolios”) are recorded as revenue (“Zero Basis Revenue”). During the years ended December 31, 2013, 2012, and 2011, Zero Basis Revenue was approximately $17.2 million, $22.6 million, and $20.6 million, respectively.

The following tables summarize the changes in the balance of the investment in receivable portfolios during the following periods (in thousands, except percentages):


	Year Ended December 31, 2013
	Accrual Basis Portfolios			Cost Recovery Portfolios			Zero Basis Portfolios			Total
Balance, beginning of period	$	873,119		$	—		$	—		$	873,119
Purchases of receivable portfolios⁽¹⁾		1,203,706			1,073			—			1,204,779
Transfer of portfolios		(6,649	)		6,649			—			—
Gross collections⁽²⁾		(1,249,625	)		(2,764	)		(27,117	)		(1,279,506	)
Put-backs and recalls		(2,331	)		(296	)		(2	)		(2,629	)
Foreign currency adjustments		49,634			—			—			49,634
Revenue recognized		715,458			—			17,201			732,659
Portfolio allowance reversals, net		2,275			—			9,918			12,193

Balance, end of period	$	1,585,587		$	4,662		$	—		$	1,590,249

Revenue as a percentage of collections⁽³⁾		57.3	%		0.0	%		63.4	%		57.3	%


	Year Ended December 31, 2012
	Accrual Basis Portfolios			Cost Recovery Portfolios			Zero Basis Portfolios			Total
Balance, beginning of period	$	716,454		$	—		$	—		$	716,454
Purchases of receivable portfolios⁽¹⁾		562,335			—			—			562,335
Gross collections⁽²⁾		(921,730	)		—			(26,276	)		(948,006	)
Put-backs and recalls		(3,076	)		—			—			(3,076	)
Revenue recognized		518,617			—			22,574			541,191
Portfolio allowance reversals, net		519			—			3,702			4,221

Balance, end of period	$	873,119		$	—		$	—		$	873,119

Revenue as a percentage of collections⁽³⁾		56.3	%		0.0	%		85.9	%		57.1	%


	Year Ended December 31, 2011
	Accrual Basis Portfolios			Cost Recovery Portfolios			Zero Basis Portfolios			Total
Balance, beginning of period	$	644,753		$	—		$	—		$	644,753
Purchases of receivable portfolios⁽¹⁾		386,850			—			—			386,850
Gross collections⁽²⁾		(740,402	)		—			(20,609	)		(761,011	)
Put-backs and recalls		(2,843	)		—			(9	)		(2,852	)
Revenue recognized		443,367			—			16,170			459,537
(Portfolio allowances) portfolio allowance reversals, net		(15,271	)		—			4,448			(10,823	)

Balance, end of period	$	716,454		$	—		$	—		$	716,454

Revenue as a percentage of collections⁽³⁾		59.9	%		0.0	%		78.5	%		60.4	%

⁽¹⁾	Purchases of portfolio receivables include $383.4 million acquired in connection with the AACC Merger in June 2013 and $559.0 million acquired in connection with the Cabot Acquisition in July 2013 discussed in Note 3, “Business Combinations.”

⁽²⁾	Does not include amounts collected on behalf of others.

⁽³⁾	Revenue as a percentage of collections excludes the effects of net portfolio allowances or net portfolio allowance reversals.

The following table summarizes the change in the valuation allowance for investment in receivable portfolios during the periods presented (in thousands):


	Valuation Allowance
Balance at December 31, 2010	$	98,671

Provision for portfolio allowances		17,707
Reversal of prior allowances		(6,884	)

Balance at December 31, 2011	$	109,494

Provision for portfolio allowances		6,745
Reversal of prior allowances		(10,966	)

Balance at December 31, 2012	$	105,273

Provision for portfolio allowances		479
Reversal of prior allowances		(12,672	)

Balance at December 31, 2013	$	93,080

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References+ Details

Deferred Court Costs, Net

12 Months Ended

Dec. 31, 2013

Deferred Court Costs, Net

Note 7: Deferred Court Costs, Net

Within the United States, the Company contracts with a nationwide network of attorneys that specialize in collection matters. The Company generally refers charged-off accounts to its contracted attorneys when it believes the related consumer has sufficient assets to repay the indebtedness and has, to date, been unwilling to pay. In connection with the Company’s agreement with the contracted attorneys, it advances certain out-of-pocket court costs (“Deferred Court Costs”). The Company capitalizes Deferred Court Costs in its consolidated financial statements and provides a reserve for those costs that it believes will ultimately be uncollectible. The Company determines the reserve based on its analysis of court costs that have been advanced and those that have been recovered. Historically, the Company wrote off Deferred Court Costs not recovered within three years of placement. However, as a result of a history of court cost recoveries beyond three years, the Company has determined that court costs are recovered over a longer period of time. As a result, in January 2013, on a prospective basis, the Company began increasing its deferral period from three years to five years. Collections received from debtors are first applied against related court costs with the balance applied to the debtors’ account balance.

Deferred Court Costs consist of the following as of the dates presented (in thousands):


	December 31, 2013			December 31, 2012
Court costs advanced	$	399,274		$	279,314
Court costs recovered		(147,166	)		(94,827	)
Court costs reserve		(210,889	)		(149,080	)

	$	41,219		$	35,407

A roll forward of the Company’s court cost reserve is as follows (in thousands):


	December 31, 2013			December 31, 2012			December 31, 2011
Balance at beginning of period	$	(149,080	)	$	(130,454	)	$	(113,239	)
Provision for court costs		(61,809	)		(53,946	)		(54,939	)
Write-off of reserve after the 36th month		—			35,320			37,724

Balance at end of period	$	(210,889	)	$	(149,080	)	$	(130,454	)

Property and Equipment, Net

12 Months Ended

Dec. 31, 2013

Property Plant And Equipment [Abstract]

Property and Equipment, Net

Note 8: Property and Equipment, Net

Property and equipment consist of the following, as of the dates presented (in thousands):


	December 31, 2013			December 31, 2012
Furniture, fixtures and equipment	$	15,955		$	7,605
Computer equipment and software		79,765			33,189
Telecommunications equipment		3,589			6,033
Leasehold improvements		15,145			6,692
Other		1,086			—

		115,540			53,519
Less: accumulated depreciation and amortization		(59,757	)		(30,296	)

	$	55,783		$	23,223

Depreciation and amortization expense for continuing operations was $12.7 million, $5.8 million, and $4.1 million for the years ended December 31, 2013, 2012, and 2011, respectively.

Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details

Other Assets

12 Months Ended

Dec. 31, 2013

Other Assets

Note 9: Other Assets

Other assets consist of the following (in thousands):


	December 31, 2013		December 31, 2012
Service fee receivables	$	29,931	$	—
Debt issuance costs, net of amortization		28,066		14,397
Identifiable intangible assets, net		23,549		487
Prepaid expenses		23,487		6,399
Deferred tax assets		13,974		—
Other financial receivables		7,962		—
Interest receivable		7,956		4,042
Prepaid income taxes		5,009		—
Recoverable legal fees		3,049		1,521
Security deposits		2,500		1,696
Other		9,300		2,993

	$	154,783	$	31,535

Debt

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Note 10: Debt

The Company is obligated under borrowings as follows (in thousands):


	December 31, 2013			December 31, 2012
Encore revolving credit facility	$	356,000		$	258,000
Encore term loan facility		140,625			148,125
Encore senior secured notes		58,750			72,500
Encore convertible notes		287,500			115,000
Less: Debt discount		(42,240	)		(14,442	)
Propel facility		152,292			117,601
Propel Wells Fargo facility		18,338			—
Cabot senior secured notes		603,272			—
Add: Debt premium		43,583			—
Preferred equity certificates		199,821			—
Capital lease obligations		12,219			9,252
Other		20,271			—

	$	1,850,431		$	706,036

Encore Revolving Credit Facility and Term Loan Facility

On February 25, 2014, Encore amended its revolving credit facility and term loan facility (the “Credit Facility”) pursuant to a Second Amended and Restated Credit Agreement, (the “Restated Credit Agreement”). The Restated Credit Agreement includes a revolving credit facility tranche of $692.6 million, a term loan facility tranche of $153.8 million, and an accordion feature that would allow the Company to increase the revolving credit facility by an additional $250.0 million. Including the accordion feature, the maximum amount that can be borrowed under the restated Credit Facility is $1.1 billion. The Restated Credit Agreement has a five-year maturity, expiring in February 2019, except with respect to two subtranches of the term loan facility of $60.0 million and $6.3 million, expiring in February 2017 and November 2017, respectively.

The Restated Credit Agreement includes a basket to allow for investments in unrestricted subsidiaries of $200.0 million and a subordinated or unsecured debt basket of $450.0 million, among other provisions.

Provisions of the Restated Credit Agreement include, but are not limited to:

•

A revolving loan of $692.6 million, interest at a floating rate equal to, at the Company’s option, either: (1) reserve adjusted London Interbank Offered Rate (“LIBOR”), plus a spread that ranges from, depending on the Company’s cash flow leverage ratio, 250 to 300 basis points; or (2) Alternate Base Rate, plus a spread that ranges from, depending on the Company’s cash flow leverage ratio, 150 to 200 basis points. “Alternate Base Rate,” as defined in the agreement, means the highest of (i) the per annum rate which the administrative agent publicly announces from time to time as its prime lending rate, as in effect from time to time, (ii) the federal funds effective rate from time to time, plus 0.5% per annum and (iii) reserved adjusted LIBOR determined on a daily basis for a one month interest period, plus 1.0% per annum;

•

An $87.5 million five-year term loan, interest at a floating rate equal to, at the Company’s option, either: (1) reserve adjusted LIBOR, plus a spread that ranges from 250 to 300 basis points, depending on the Company’s cash flow leverage ratio; or (2) Alternate Base Rate, plus a spread that ranges from 150 to 200 basis points, depending on the Company’s cash flow leverage ratio. Principal amortizes $4.4 million in 2014, $4.4 million in 2015, $6.6 million in 2016, $8.8 million in 2017, and $8.8 million in 2018 with the remaining principal due at the end of the term;

•

A $60.0 million term loan maturing on February 25, 2017, interest at a floating rate equal to, at the Company’s option, either: (1) reserve adjusted LIBOR, plus a spread that ranges from 200 to 250 basis points, depending on the Company’s cash flow leverage ratio; or (2) Alternate Base Rate, plus a spread that ranges from 100 to 150 basis points, depending on the Company’s cash flow leverage ratio. Principal amortizes $3.0 million in 2014, $3.0 million in 2015, and $4.5 million in 2016 with the remaining principal due at the end of the term;

•

A $6.3 million term loan maturing on November 3, 2017, interest at a floating rate equal to, at the Company’s option, either: (1) reserve adjusted LIBOR, plus a spread that ranges from 250 to 300 basis points, depending on the Company’s cash flow leverage ratio; or (2) Alternate Base Rate, plus a spread that ranges from 150 to 200 basis points, depending on the Company’s cash flow leverage ratio. Principal amortizes $0.4 million in 2014, $0.5 million in 2015, $0.6 million in 2016 and $0.5 million in 2017 with the remaining principal due at the end of the term;

•

A borrowing base equal to (1) the lesser of (i) (a) 55% of eligible estimated remaining collections for consumer receivables subject to bankruptcy proceedings, provided that the amount described in this clause (i)(a) may not exceed 35% of the amount described in clauses (i)(a) and (i)(b), plus (b) 30%—35% (depending on the Company’s trailing 12-month cost per dollar collected) of all other eligible estimated remaining collections, initially set at 33%, and (ii) the product of the net book value of all receivable portfolios acquired on or after January 1, 2005 multiplied by 95%, minus (2) (x) the aggregate principal amount outstanding of the Senior Secured Notes (as defined below) plus (y) the aggregate principal amount outstanding under the term loans;

•

The allowance of additional unsecured or subordinated indebtedness not to exceed $450.0 million;

•

Restrictions and covenants, which limit the payment of dividends and the incurrence of additional indebtedness and liens, among other limitations;

•

Repurchases of up to $50.0 million of Encore’s common stock after February 25, 2014, subject to compliance with certain covenants and available borrowing capacity;

•

A change of control definition, which excludes acquisitions of stock by Red Mountain Capital Partners LLC, JCF FPK LLP and their respective affiliates of up to 50% of the outstanding shares of Encore’s voting stock;

•

Events of default which, upon occurrence, may permit the lenders to terminate the facility and declare all amounts outstanding to be immediately due and payable;

•

An acquisition limit of $75.0 million per acquisition and $225.0 million in the aggregate for acquisitions after February 25, 2014;

•

An annual foreign portfolio investment basket of $150.0 million; and

•

Collateralization by all assets of the Company, other than the assets of the Propel entities or any foreign or unrestricted subsidiaries.

At December 31, 2013, the outstanding balance under the Restated Credit Agreement was $496.6 million, which bore a weighted average interest rate of 3.11% and 4.06% for the year ended December 31, 2013 and 2012, respectively.

Encore Senior Secured Notes

In 2010 and 2011 Encore entered into an aggregate of $75.0 million in senior secured notes with certain affiliates of Prudential Capital Group (the “Senior Secured Notes”). $25.0 million of the Senior Secured Notes bear an annual interest rate of 7.375%, mature in 2018 and require quarterly principal amortization payments of $1.25 million. Prior to May 2013, these notes required quarterly payments of interest only. The remaining $50.0 million of Senior Secured Notes bear an annual interest rate of 7.75%, mature in 2017 and require quarterly principal amortization payments of $2.5 million. Prior to December 2012 these notes required quarterly interest payments only. As of December 31, 2013, $58.8 million is outstanding under these obligations.

The Senior Secured Notes are guaranteed in full by certain of Encore’s subsidiaries. Similar to, and pari passu with, Encore’s credit facility, the Senior Secured Notes are also collateralized by all assets of the Company other than the assets of the Propel entities and any foreign and unrestricted subsidiaries including Janus Holdings. The Senior Secured Notes may be accelerated and become automatically and immediately due and payable upon certain events of default, including certain events related to insolvency, bankruptcy, or liquidation. Additionally, the Senior Secured Notes may be accelerated at the election of the holder or holders of a majority in principal amount of the Senior Secured Notes upon certain events of default by Encore, including the breach of affirmative covenants regarding guarantors, collateral, most favored lender treatment, minimum revolving credit facility commitment or the breach of any negative covenant. If Encore prepays the Senior Secured Notes at any time for any reason, payment will be at the higher of par or the present value of the remaining scheduled payments of principal and interest on the portion being prepaid. The discount rate used to determine the present value is 50 basis points over the then current Treasury Rate corresponding to the remaining average life of the senior secured notes. The covenants are substantially similar to those in the Restated Credit Agreement. Prudential Capital Group and the administrative agent for the lenders of the Restated Credit Agreement have an intercreditor agreement related to their pro rata rights to the collateral, actionable default, powers and duties and remedies, among other topics. The terms of the Senior Secured Notes were amended and restated on May 9, 2013 in connection with the Restated Credit Agreement in order to properly align certain provisions between the two agreements.

Encore Convertible Senior Notes

2017 Convertible Senior Notes

On November 27, 2012, Encore sold $100.0 million in aggregate principal amount of 3.0% convertible senior notes due November 27, 2017 in a private placement transaction. On December 6, 2012, the initial purchasers exercised, in full, their option to purchase an additional $15.0 million of the convertible senior notes, which resulted in an aggregate principal amount of $115.0 million of the convertible senior notes outstanding (collectively, the “2017 Convertible Notes”). Interest on the 2017 Convertible Notes is payable semi-annually, in arrears, on May 27 and November 27 of each year, beginning on May 27, 2013. The 2017 Convertible Notes are the Company’s general unsecured obligations. The 2017 Convertible Notes will be convertible into cash up to the aggregate principal amount of the 2017 Convertible Notes to be converted and the Company will pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election, in respect of the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the 2017 Convertible Notes being converted. The 2017 Convertible Notes will be convertible at an initial conversion rate of 31.6832 shares of the Company’s common stock per $1,000 principal amount of 2017 Convertible Notes, subject to adjustment upon certain events, which is equivalent to an initial conversion price of approximately $31.56 per share of the Company’s common stock. As of December 31, 2013, none of the conditions allowing holders of the 2017 Convertible Notes to convert their notes had occurred. However, starting on January 2, 2014, the 2017 Convertible Notes became convertible.

Authoritative guidance related to debt with conversion and other options requires that issuers of convertible debt instruments that, upon conversion, may be settled fully or partially in cash, must separately account for the liability and equity components in a manner that will reflect the entity’s nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. Additionally, debt issuance costs are required to be allocated in proportion to the allocation of the liability and equity components and accounted for as debt issuance costs and equity issuance costs, respectively.

The Company determined that the fair value of the 2017 Convertible Notes was approximately $100.3 million, and designated the residual value of approximately $14.7 million as the equity component. Additionally, the Company allocated approximately $3.3 million of the $3.8 million original Convertible Notes issuance cost as debt issuance cost and the remaining $0.5 million as equity issuance cost.

In accordance with authoritative guidance related to derivatives and hedging and earnings per share calculation, only the conversion spread of the 2017 Convertible Notes is included in the diluted earnings per share calculation, if dilutive. Under such method, the settlement of the conversion spread has a dilutive effect when the average share price of the Company’s common stock during any quarter exceeds $31.56. The average share price of the Company’s common stock for the year ended December 31, 2013 exceeded $31.56. The dilutive effect from the 2017 Convertible Notes was approximately 0.6 million shares for the year ended December 31, 2013. See Note 1, “Ownership, Description of Business and Summary of Significant Accounting Policies—Earnings Per Share” for additional information.

Concurrent with the pricing of the 2017 Convertible Notes, the Company entered into privately negotiated convertible note hedge transactions (together, the “Convertible Note Hedge Transactions”) with certain counterparties. The Convertible Note Hedge Transactions collectively cover, subject to customary anti-dilution adjustments, the number of shares of the Company’s common stock underlying the 2017 Convertible Notes, as described below. Concurrently with entering into the Convertible Note Hedge Transactions, the Company also entered into separate, privately negotiated warrant transactions (together, the “Warrant Transactions”) with the same counterparties, whereby the Company sold to the counterparties warrants to purchase, collectively, subject to customary anti-dilution adjustments, up to the same number of shares of the Company’s common stock as in the Convertible Note Hedge Transactions. Subject to certain conditions, the Company may settle the warrants in cash or on a net-share basis.

The Convertible Note Hedge Transactions are expected generally to reduce the potential dilution and/or offset the potential cash payments the Company is required to make in excess of the principal amount upon conversion of the 2017 Convertible Notes in the event that the market price per share of the Company’s common stock, is greater than the strike price of the Convertible Note Hedge Transactions, which initially corresponds to the conversion price of the 2017 Convertible Notes and is subject to anti-dilution adjustments. If, however, the market price per share of the Company’s common stock, as measured under the terms of the Warrant Transactions, exceeds the strike price of the warrants, there would nevertheless be dilution to the extent that such market price exceeds the strike price of the warrants, unless the Company elects, subject to certain conditions, to settle the Warrant Transactions in cash. The strike price of the Warrant Transactions was initially $44.19 per share of the Company’s common stock and was subject to certain adjustments under the terms of the Warrant Transactions. Taken together, the Convertible Note Hedge Transactions and the Warrant Transactions had the effect of increasing the effective conversion price of the 2017 Convertible Notes to $44.19 per share. The average share price of the Company’s common stock for the year ended December 31, 2013 did not exceed $44.19.

The Convertible Note Hedge Transactions and the Warrant Transactions are separate transactions, in each case, entered into by the Company with certain counterparties, and are not part of the terms of the 2017 Convertible Notes and will not affect any holder’s rights under the 2017 Convertible Notes. Holders of the 2017 Convertible Notes will not have any rights with respect to the Convertible Note Hedge Transactions or the Warrant Transactions. In accordance with authoritative guidance, the Company recorded the net cost of the Convertible Note Hedge Transactions and the Warrant Transactions as a reduction in additional paid in capital, and will not recognize subsequent changes in fair value of these financial instruments in its consolidated financial statements.

On December 16, 2013, the Company entered into amendments to the warrants to increase the strike price from $44.19 to $60.00. All other terms and settlement provisions of the warrants remained unchanged. Warrants representing approximately 358,000 shares of common stock were modified as of December 31, 2013. The remaining 3.2 million shares represented by the warrants were modified between January 1, 2014 and February 6, 2014. The Company paid the holders of the warrants approximately $7.66 per warrant, or approximately $27.9 million in total in consideration for amending the warrants. In accordance with authoritative guidance, the Company recorded the payment as a reduction of shareholders’ equity in the consolidated statements of financial condition because, prior to being amended, the warrants were classified in permanent equity. The amended warrants meet the definition of derivatives; however, because these instruments have been determined to be indexed to the Company’s own stock and meet the criteria for equity classification under the authoritative guidance, the amended warrants have also been recorded in shareholders’ equity in the consolidated statements of financial condition. The costs for the warrant restrike completed in 2013 and 2014 were approximately $2.7 million and $25.2 million, respectively.

2020 Convertible Senior Notes

On June 24, 2013, Encore sold $150.0 million in aggregate principal amount of 3.0% convertible senior notes due July 1, 2020 in a private placement transaction. On July 18, 2013, the initial purchasers exercised, in full, their option to purchase an additional $22.5 million of the convertible senior notes, which resulted in an aggregate principal amount of $172.5 million of the convertible senior notes outstanding (collectively, the “2020 Convertible Notes”). The 2020 Convertible Notes are general unsecured obligations of the Company. Interest on the 2020 Convertible Notes is payable semi-annually, in arrears, on January 1 and July 1 of each year, beginning on January 1, 2014. Prior to January 1, 2020, the 2020 Convertible Notes will be convertible only during specified periods, if certain conditions are met. On or after January 1, 2020, the 2020 Convertible Notes will be convertible regardless of these conditions. Upon conversion, holders will receive cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election. The conversion rate for the 2020 Convertible Notes is 21.8718 shares per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $45.72 per share of common stock. As of December 31, 2013, none of the conditions allowing holders of the 2020 Convertible Notes to convert their notes had occurred.

As noted above, upon conversion, holders of the Company’s 2020 Convertible Notes will receive cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election. However, the Company’s current intent is to settle conversions through combination settlement (i.e., convertible into cash up to the aggregate principal amount, and shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election, for the remainder). As a result and in accordance with authoritative guidance related to derivatives and hedging and earnings per share, only the conversion spread is included in the diluted earnings per share calculation, if dilutive. Under such method, the settlement of the conversion spread has a dilutive effect when the average share price of the Company’s common stock during any quarter exceeds $45.72.

In connection with the pricing of the 2020 Convertible Notes, the Company entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with one or more of the initial purchasers (or their affiliates) and one or more other financial institutions (the “Option Counterparties”). The Capped Call Transactions cover, collectively, the number of shares of the Company’s common stock underlying the 2020 Convertible Notes, subject to anti-dilution adjustments substantially similar to those applicable to the 2020 Convertible Notes. The cost of the Capped Call Transactions was approximately $18.1 million. In accordance with authoritative guidance, the Company recorded the net cost of the Capped Call Transactions as a reduction in additional paid in capital, and will not recognize subsequent changes in fair value of these financial instruments in its consolidated financial statements.

The Capped Call Transactions are expected generally to reduce the potential dilution and/or offset the cash payments the Company is required to make in excess of the principal amount upon conversion of the 2020 Convertible Notes in the event that the market price of the Company’s common stock is greater than the strike price of the Capped Call Transactions (which initially corresponds to the initial conversion price of the 2020 Convertible Notes and is subject to certain adjustments under the terms of the Capped Call Transactions), with such reduction and/or offset subject to a cap based on the cap price of the Capped Call Transactions. The cap price of the Capped Call Transactions is $61.5475 per share, and is subject to certain adjustments under the terms of the Capped Call Transactions.

The Capped Call Transactions are separate transactions, in each case, entered into by the Company with the Option Counterparties, and are not part of the terms of the 2020 Convertible Notes and will not affect any holder’s rights under the 2020 Convertible Notes. Holders of the 2020 Convertible Notes do not have any rights with respect to the Capped Call Transactions.

The net proceeds from the sale of the 2020 Convertible Notes were approximately $167.4 million, after deducting the initial purchasers’ discounts and commissions and the estimated offering expenses paid by the Company. The Company used approximately $18.1 million of the net proceeds from this offering to pay the cost of the Capped Call Transactions and used the remainder of the net proceeds from this offering to pay a portion of the purchase price for the Cabot Acquisition and for general corporate purposes.

The Company determined that the fair value of the 2020 Convertible Notes at the date of issuance was approximately $140.2 million, and designated the residual value of approximately $32.3 million as the equity component. Additionally, the Company allocated approximately $4.9 million of the $6.0 million original 2020 Convertible Notes issuance cost as debt issuance costs and the remaining $1.1 million as equity issuance costs.

The balances of the liability and equity components of all of the convertible notes outstanding were as follows (in thousands):


	December 31, 2013			December 31, 2012
Liability component—principal amount	$	287,500		$	115,000
Unamortized debt discount		(42,240	)		(14,442	)

Liability component—net carrying amount	$	245,260		$	100,558

Equity component	$	46,954		$	14,702

The debt discount is being amortized into interest expense over the remaining life of the convertible notes using the effective interest rates, which are 6.0 % and 6.35% for the 2017 and 2020 Convertible Notes, respectively.

Interest expense related to the convertible notes was as follows (in thousands):


	December 31, 2013		December 31, 2012
Interest expense—stated coupon rate	$	6,108	$	307
Interest expense—amortization of debt discount		4,492		260

Total interest expense—convertible notes	$	10,600	$	567

Propel Facility

Propel has a $160.0 million syndicated loan facility (the “Propel Facility”).

The Propel Facility expires in May 2015 and includes the following key provisions:

•

Interest at Propel’s option, at either: (1) LIBOR, plus a spread that ranges from 300 to 375 basis points, depending on Propel’s cash flow leverage ratio; or (2) Prime Rate, which is defined in the agreement as the rate of interest per annum equal to the sum of (a) the interest rate quoted in the “Money Rates” section of The Wall Street Journal from time to time and designated as the “Prime Rate” plus (b) the Prime Rate Margin, which is a spread that ranges from 0 to 75 basis points, depending on Propel’s cash flow leverage ratio;

•

A borrowing base of 90% of the face value of the tax lien collateralized payment arrangements;

•

Interest payable monthly; principal and interest due at maturity;

•

Restrictions and covenants, which limit, among other things, the payment of dividends and the incurrence of additional indebtedness and liens;

•

Events of default which, upon occurrence, may permit the lender to terminate the Propel Facility and declare all amounts outstanding to be immediately due and payable; and

•

A $40.0 million accordion feature.

The Propel Facility is primarily collateralized by the Tax Liens in Texas and requires Propel to maintain various financial covenants, including a minimum interest coverage ratio and a maximum cash flow leverage ratio.

On December 27, 2013, Propel exercised the existing accordion feature, increasing the Propel Facility from $160.0 million to $200.0 million. At December 31, 2013, the outstanding balance on the Propel Facility was $152.3 million, which bore a weighted average interest rate of 3.19% and 3.37% for the year ended December 31, 2013 and 2012, respectively.

Propel Wells Fargo Facility

On May 9, 2013, the Company, through subsidiaries of Propel, entered into a $100.0 million revolving credit facility with Wells Fargo Bank N.A. (the “Propel Wells Fargo Facility”). The Propel Wells Fargo Facility is used to purchase tax liens directly from taxing authorities in various other states.

The Propel Wells Fargo Facility expires in May 2017 and includes the following key provisions:

•

During the first two years of the four-year term, the committed amount can be drawn on a revolving basis. During the following two years, no additional draws are permitted, and all proceeds from the tax liens are used to repay any amounts outstanding under the facility. After the four-year period ends, if any amounts are still outstanding, an alternate interest rate applies until all amounts owed are repaid;

•

Prior to the expiration of the four-year term, interest at a per annum floating rate equal to LIBOR plus a spread of 325 basis points;

•

Following the expiration of the four-year term or upon the occurrence of an event of default, interest at 400 basis points plus the greater of (i) a per annum floating rate equal to LIBOR plus a spread of 325 basis points, or (ii) Prime Rate, which is defined in the agreement as the rate most recently announced by the lender at its branch in San Francisco, California, from time to time as its prime commercial rate for United States dollar-denominated loans made in the United States;

•

Proceeds from the tax liens are applied to pay interest, principal and other obligations incurred in connection with the Propel Wells Fargo Facility on a monthly basis as defined in the agreement;

•

Special purpose entity covenants designed to protect the bankruptcy-remoteness of the borrowers and additional restrictions and covenants, which limit, among other things, the payment of certain dividends, the occurrence of additional indebtedness and liens and use of the collections proceeds from the certain Tax Liens; and

•

Events of default which, upon occurrence, may permit the lender to terminate the Propel Wells Fargo Facility and declare all amounts outstanding to be immediately due and payable.

The Propel Wells Fargo Facility is collateralized by the Tax Liens acquired under the Propel Wells Fargo Facility. At December 31, 2013, the outstanding balance on the Propel Wells Fargo Facility was $18.3 million and, for the year ended December 31, 2013, bore a weighted average interest rate of 3.64%.

Cabot Senior Secured Notes

On September 20, 2012, Cabot Financial (Luxembourg) S.A. (“Cabot Financial”), an indirect subsidiary of Janus Holdings, issued £265.0 million (approximately $438.4 million) in aggregate principal amount of 10.375% Senior Secured Notes due 2019 (the “Cabot 2019 Notes”). Interest on the Cabot 2019 Notes is payable semi-annually, in arrears, on April 1 and October 1 of each year.

On August 2, 2013, Cabot Financial issued £100 million (approximately $151.7 million) in aggregate principal amount of 8.375% Senior Secured Notes due 2020 (the “Cabot 2020 Notes” and, together with the Cabot 2019 Notes, the “Cabot Notes”). Interest on the Cabot 2020 Notes is payable semi-annually, in arrears, on February 1 and August 1 of each year, beginning on February 1, 2014. The total debt issuance cost associated with the Cabot 2020 Notes was approximately $4.9 million.

Of the proceeds from the issuance of the Cabot 2020 Notes, approximately £75.0 million (approximately $113.8 million) was used to repay all amounts outstanding under the senior credit facilities of Cabot Financial (UK) Limited (“Cabot Financial UK”), an indirect subsidiary of Janus Holdings, £25.0 million (approximately $37.9 million) was used to partially repay a portion of the J Bridge PECs (as anticipated in the Purchase Agreement discussed in Note 3, “Business Combinations”) to J.C. Flowers.

The Cabot Notes are fully and unconditionally guaranteed by the following indirect subsidiaries of the Company: Cabot, Cabot Financial Limited, and all material subsidiaries of Cabot Financial Limited (other than Cabot Financial). The Cabot Notes are secured by a first ranking security interest in all the outstanding shares of Cabot Financial and the guarantors (other than Cabot) and substantially all the assets of Cabot Financial and the guarantors (other than Cabot).

Interest expense related to the Cabot Notes was as follows (in thousands):


	Year Ended December 31, 2013
Interest expense—stated coupon rate	$	27,496
Interest income—appreciation of debt premium		(2,826	)

Total interest expense—Cabot Notes	$	24,670

Cabot Senior Revolving Credit Facility

On September 20, 2012, Cabot Financial UK entered into an agreement for a senior committed revolving credit facility of £50.0 million (approximately $82.7 million) (the “Cabot Credit Agreement”). This agreement was amended and restated on June 28, 2013 to increase the size of the revolving credit facility to £85.0 million (approximately $140.6 million) (the “Cabot Credit Facility”).

The Cabot Credit Facility has a five-year term expiring in September 2017, and includes the following key provisions:

•

Interest at LIBOR plus a maximum of 4.0% depending on the loan to value (“LTV”) ratio determined quarterly, calculated as being the ratio of the net financial indebtedness of Cabot (as defined in the Cabot Credit Agreement) to Cabot’s estimated remaining collections capped at 84-months;

•

A restrictive covenant that limits the LTV ratio to 0.75;

•

Additional restrictions and covenants which limit, among other things, the payment of dividends and the incurrence of additional indebtedness and liens; and

•

Events of default which, upon occurrence, may permit the lenders to terminate the Cabot Credit Facility and declare all amounts outstanding to be immediately due and payable.

The Cabot Credit Facility is unconditionally guaranteed by the following indirect subsidiaries of the Company: Cabot, Cabot Financial Limited, and all material subsidiaries of Cabot Financial Limited. The Cabot Notes are secured by a first ranking security interest in all the outstanding shares of Cabot Financial UK and the guarantors (other than Cabot) and substantially all the assets of Cabot Financial UK and the guarantors (other than Cabot).

At December 31, 2013, there were no outstanding borrowings under the Cabot Credit Facility.

On February 7, 2014, Cabot Financial UK acquired all of the equity interest of Marlin, a leading acquirer of non-performing consumer debt in the United Kingdom, for an aggregate purchase price of approximately £295.0 million (approximately $481.0 million). The Acquisition was financed with £75.0 million (approximately $122.3 million) in borrowings under the Cabot Credit Facility and under new senior secured bridge facilities. Refer to Note 18, “Subsequent Events” for additional details related to the acquisition of Marlin and the new senior secured bridge facilities.

Preferred Equity Certificates

As discussed in Note 3, “Business Combinations,” on July 1, 2013, the Company, through Encore Europe, completed the Cabot Acquisition by acquiring E Bridge PECs, E PECs, and E Shares that represent 50.1% of all of the issued and outstanding equity and debt securities of Janus Holdings. The remaining 49.9% of Janus Holdings’ equity and debt securities constitute J Bridge PECs, J PECs, and J shares owned by J.C. Flowers. All of the PECs accrue interest at 12% per annum. In accordance with authoritative guidance related to debt and equity securities, the J Bridge PECs, J PECs and any accrued interests thereof are classified as liabilities and are included in debt in the Company’s accompanying consolidated statements of financial condition. In addition, certain other minority owners hold PECs at the Cabot Holdings level (the “Management PECs”). These PECs are also included in debt in the Company’s accompanying consolidated statements of financial condition. The E Bridge PECs and E PECs held by the Company, and their related interest eliminate in consolidation and therefore are not included in debt. As noted above, the J Bridge PECs, J PECs and Management PECs are included in debt in the Company’s accompanying consolidated statements of financial condition. However, as these liabilities are held by the noncontrolling interest holders and do not require the payment of cash interest expense, they have characteristics similar to equity with a preferred return. The ultimate payment of the accumulated interest would be satisfied only in connection with the disposition of the noncontrolling interests of J.C. Flowers and management.

The Company determined, at the time of the Cabot Acquisition, that the fair value of the preferred equity certificates and the respective accrued interests approximated their face value.

As anticipated in the Purchase Agreement, and as discussed in Note 3, “Business Combinations,” in August 2013, Cabot made a payment of approximately $41.2 million to J.C. Flowers for a partial redemption of the J Bridge PECs.

As of December 31, 2013, the outstanding balance of the PECs and their accrued interests was approximately $199.8 million.

Capital Lease Obligations

The Company has capital lease obligations primarily for computer equipment. As of December 31, 2013, the Company’s combined obligations for these equipment leases were approximately $13.0 million. These lease obligations require monthly or quarterly payments through 2018 and have implicit interest rates that range from zero to approximately 13.3%.

Maturity Schedule

The aggregate amounts of the Company’s debt, including PECs, accrued interests on PECs, and capital lease obligations, maturing in each of the next five years and thereafter are as follows:


	In thousands
2014	$	40,989
2015		226,906
2016		28,459
2017		573,622
2018		2,655
Thereafter		976,458

Total⁽¹⁾	$	1,849,089

⁽¹⁾

On February 25, 2014, the Company amended its Credit Facility. The restated Credit Facility has a five-year maturity, expiring in February 2019, except with respect to two subtranches of the term loan facility of $60.0 million and $6.3 million, expiring in February 2017 and November 2017, respectively. The maturity schedule in the table above does not reflect the amended maturity schedule for the restated Credit Facility.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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Variable Interest Entity

12 Months Ended

Dec. 31, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Variable Interest Entity

Note 11: Variable Interest Entity

On July 1, 2013, the Company, through Encore Europe, completed its acquisition of 50.1% of the equity interest in Janus Holdings. See Note 3, “Business Combinations” for more information. The Company has determined that Janus Holdings is a VIE, and the Company is the primary beneficiary of the VIE. As a result, the financial results of Janus Holdings are consolidated under the VIE consolidation model. A VIE is defined as a legal entity whose equity owners do not have sufficient equity at risk, or, as a group, the holders of the equity investment at risk lack any of the following three characteristics: decision-making rights, the obligation to absorb losses, or the right to receive the expected residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and the obligation to absorb expected losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The key activities that affect Cabot’s economic performance include, but are not limited to, operational budgets and purchasing decisions. Through its control of the board of directors of Cabot’s immediate parent company, the Company controls the key operating activities at Cabot. The Company evaluates its relationships with the VIE on an ongoing basis to ensure that it continues to be the primary beneficiary.

The Company considers that the rights granted to J.C. Flowers under the contractual arrangements are more protective in nature rather than participating rights.

The Company does not intend to provide financial support to Janus Holdings. The Company did not apply push down accounting to Janus Holdings as a result of the business combination.

The Company’s consolidated assets as of December 31, 2013 included assets from Janus Holdings that can only be used to settle obligations of Janus Holdings. The Company’s consolidated liabilities as of December 31, 2013, included liabilities of Janus Holdings, whose creditors have no recourse to the Company. The following table presents Janus Holdings’ assets and liabilities (after elimination of intercompany transactions and balances) in the Company’s consolidated statement of financial condition as of December 31, 2013 (in thousands):


	December 31, 2013
Assets
Cash and cash equivalents	$	62,403
Investment in receivable portfolios, net		620,312
Property and equipment, net		13,755
Other assets		33,772
Goodwill		376,296

Total assets	$	1,106,538

Liabilities
Accounts payable and accrued liabilities	$	47,219
Debt		846,676
Other liabilities		1,897

Total liabilities	$	895,792

Stock-Based Compensation

12 Months Ended

Dec. 31, 2013

Stock-Based Compensation

Note 12: Stock-Based Compensation

On March 9, 2009, Encore’s Board of Directors (the “Board”) approved an amendment and restatement of the 2005 Stock Incentive Plan (“2005 Plan”), which was originally adopted on March 30, 2005, for Board members, employees, officers, and executives of, and consultants and advisors to, the Company. The amendment and restatement of the 2005 Plan increased by 2,000,000 shares the maximum number of shares of the Company’s common stock that may be issued or be subject to awards under the plan, established a new 10-year term for the plan, and made certain other amendments. The 2005 Plan amendment was approved by the Company’s stockholders on June 9, 2009. The 2005 Plan provides for the granting of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, and performance-based awards to eligible individuals. As amended, the 2005 Plan allows the granting of an aggregate of 3,500,000 shares of the Company’s common stock for awards. In addition, shares subject to options granted under the 2005 Plan that terminate or expire without being exercised will become available for grant under the 2005 Plan. The benefit provided under the 2005 Plan is compensation subject to authoritative guidance for stock-based compensation.

In accordance with authoritative guidance for stock-based compensation, compensation expense is recognized only for those shares expected to vest, based on the Company’s historical experience and future expectations. Total compensation expense during the years ended December 31, 2013, 2012, and 2011 was $12.6 million, $8.8 million, and $7.7 million, respectively.

The Company’s stock-based compensation arrangements are described below:

Stock Options

The 2005 Plan permits the granting of stock options to certain employees and members of the board of directors of the Company. Option awards are generally granted with an exercise price equal to the market price of the Company’s stock at the date of issuance. They generally vest over three to five years of continuous service, and have ten-year contractual terms.

The Company uses the Black-Scholes option-pricing model to determine the fair-value of stock-based awards. All options are amortized ratably over the requisite service periods of the awards, which are generally the vesting periods.

The fair value for options granted was estimated at the date of grant using a Black-Scholes option-pricing model with the following weighted-average assumptions (there were no options granted during the year ended December 31, 2013):


	Year Ended December 31,
	2012			2011
Weighted average fair value of options granted	$	11.77		$	13.26
Risk free interest rate		0.9	%		2.0	%
Dividend yield		0.0	%		0.0	%
Volatility factors of the expected market price of the Company’s common stock		63.0	%		61.0	%
Weighted-average expected life of options		5 Years			5 Years

Unrecognized compensation cost related to stock options as of December 31, 2013, was $0.7 million. The weighted-average remaining expense period, based on the unamortized value of these outstanding stock options was approximately 1.0 years.

A summary of the Company’s stock option activity as of December 31, 2013, and changes during the year then ended, is presented below:


	Number of Shares			Option Price Per Share		Weighted Average Exercise Price		Aggregate Intrinsic Value *(in thousands)*
Outstanding at December 31, 2012		1,948,259		$	2.89 –$24.65	$	15.38
Cancelled/forfeited		(61,332	)		22.17 –24.65		23.03
Exercised		(753,755	)		2.89 –24.65		15.56

Outstanding at December 31, 2013		1,133,172		$	2.89 –$24.65	$	14.84	$	40,138

Exercisable at December 31, 2013		987,843		$	2.89 –$24.65	$	13.71	$	36,103

The total intrinsic value of options exercised during the years ended December 31, 2013, 2012, and 2011 was $16.9 million, $9.1 million, and $10.5 million, respectively. As of December 31, 2013, the weighted-average remaining contractual life of options outstanding and options exercisable was 5.6 years and 5.2 years, respectively.

Non-Vested Shares

Under the Company’s 2005 Plan, employees, officers, executives and directors of, and consultants and advisors to, the Company are eligible to receive restricted stock units and restricted stock awards. In accordance with the authoritative guidance, the fair value of these non-vested shares is equal to the closing sale price of the Company’s common stock on the date of issuance. The total number of these awards expected to vest is adjusted by estimated forfeiture rates.

A summary of the status of the Company’s restricted stock units and restricted stock awards as of December 31, 2013, and changes during the year then ended, is presented below:


	Non-Vested Shares			Weighted Average Grant Date Fair Value
Non-vested at December 31, 2012		744,016		$	23.51
Awarded		645,266		$	35.03
Vested		(336,772	)	$	22.85
Cancelled/forfeited		(66,775	)	$	26.39

Non-vested at December 31, 2013		985,735		$	31.07

Unrecognized compensation cost related to non-vested shares as of December 31, 2013, was $16.2 million. The weighted-average remaining expense period, based on the unamortized value of these outstanding non-vested shares, was approximately 2.2 years. The fair value of restricted stock units and restricted stock awards vested for the years ended December 31, 2013, 2012, and 2011 was $11.5 million, $7.0 million, and $7.1 million, respectively.

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Note 13: Income Taxes

During the year ended December 31, 2013, the Company recorded an income tax provision of $45.4 million, reflecting an effective rate of 37.6% of pretax income from continuing operations. The effective tax rate for the year ended December 31, 2013, primarily consisted of a provision for federal income taxes of 33.0% (which is net of a benefit for state taxes of 2.0%), a provision for state taxes of 5.8% and a net benefit of 1.2%, due to permanent book versus tax differences. During the year ended December 31, 2012, the Company recorded an income tax provision of $51.8 million, reflecting an effective rate of 39.7% of pretax income from continuing operations. The effective tax rate for the year ended December 31, 2012, primarily consisted of a provision for federal income taxes of 32.7% (which is net of a benefit for state taxes of 2.3%), a provision for state taxes of 6.6% and a net provision of 0.4%, due to permanent book versus tax differences, and international rate differentials.

The effective tax rates for the respective periods are shown below:


	Year Ended December 31,
	2013			2012
Federal provision		35.0	%		35.0	%
State provision		5.8	%		6.6	%
State benefit		(2.0	%)		(2.3	%)
Changes in state apportionment⁽¹⁾		(0.2	%)		0.0	%
Tax reserves⁽²⁾		0.0	%		0.1	%
International provision⁽³⁾		(2.2	%)		(0.4	%)
Permanent items⁽⁴⁾		2.4	%		0.5	%
Other		(1.2	%)		0.2	%

Effective rate		37.6	%		39.7	%

⁽¹⁾	Represents changes in state apportionment methodologies.

⁽²⁾	Represents reserves taken for certain tax position adopted by the Company.

⁽³⁾	Relates primarily to the lower tax rate on the income attributable to international operations.

⁽⁴⁾	Represents a provision for nondeductible items.

The pretax income consisted of the following (in thousands):


	Year Ended December 31,
	2013		2012		2011
Domestic	$	105,009	$	122,423	$	92,759
Foreign		15,859		7,902		5,910

	$	120,868	$	130,325	$	98,669

The provision for income taxes consisted of the following (in thousands):


	Year Ended December 31,
	2013			2012			2011
Current expense:
Federal	$	50,304		$	48,025		$	30,822
State		7,196			9,537			6,647
Foreign		4,052			2,765			2,407

		61,552			60,327			39,876
Deferred (benefit) expense:
Federal		(13,134	)		(6,801	)		(814	)
State		(2,369	)		(1,301	)		90
Foreign		(661	)		(471	)		(1,076	)

		(16,164	)		(8,573	)		(1,800	)

	$	45,388		$	51,754		$	38,076

The components of deferred tax assets and liabilities consisted of the following for the years presented (in thousands):


	December 31, 2013			December 31, 2012
Deferred tax assets:
State taxes	$	2,758		$	1,408
Stock-based compensation expense		7,250			8,888
Accrued expenses		5,015			2,957
Non-qualified plan		97			(136	)
Deferred revenue		38,529			—
Cash flow hedge instruments		1,588			1,037
State and international operating losses		6,490			51
Fixed asset basis—International		86			(26	)
Capitalized legal fees—International		1,609			—
Cumulative translation adjustment		1,509			—
Tax benefit of uncertain tax positions		4,237			—
Valuation allowance		(3,595	)		(13	)

		65,573			14,166

Deferred tax liabilities:
Deferred court costs		(15,445	)		(15,013	)
Difference in basis of amortizable assets		(12,200	)		(7,898	)
Difference in basis of depreciable assets		(6,834	)		(4,134	)
Differences in income recognition related to receivable portfolios		(20,773	)		5,723
Deferred debt cancellation income		(1,222	)		(1,222	)
Other		(2,289	)		142

		(58,763	)		(22,402	)

Net deferred tax asset (liability)	$	6,810		$	(8,236	)

The differences between the total income tax expense and the income tax expense computed using the applicable federal income tax rate of 35% per annum were as follows (in thousands):


	Year Ended December 31,
	2013			2012			2011
Computed “expected” Federal income tax expense	$	42,304		$	45,614		$	34,534
Increase (decrease) in income taxes resulting from:
State income taxes, net		3,138			5,551			4,200
Foreign non-taxed income, rate differential		(2,647	)		(481	)		(772	)
Other adjustments, net		2,593			1,070			114

	$	45,388		$	51,754		$	38,076

The Company has not provided for the United States income taxes or foreign withholding taxes on the undistributed earnings from continuing operations of its subsidiary operating outside of the United States. Undistributed earnings of the subsidiary for the year ended December 31, 2013, were approximately $5.6 million. Such undistributed earnings are considered permanently reinvested. If the earnings were to be distributed, it is estimated that taxes in the amount of approximately $2.2 million, before utilization of any foreign tax credits, would need to be reflected in the financial statements.

The Company’s subsidiary in Costa Rica is operating under a 100% tax holiday through December 31, 2018 and a 50% tax holiday for the subsequent four years. The impact of the tax holiday in Costa Rica for the year ended December 31, 2013 was immaterial.

A reconciliation of the beginning and ending amount of the Company’s unrecognized tax benefit is as follows (in thousands):


	Amount
Balance at December 31, 2012	$	1,784
Current year deletions relating to prior years		(712	)
Current year additions relating to prior years—acquisitions		70,201

Balance at December 31, 2013	$	71,273

As of December 31, 2013, the Company had a gross unrecognized tax benefit of $83.0 million primarily related to an uncertain tax position resulting from the AACC Merger due to AACC’s tax revenue recognition policy. This uncertain tax position, if recognized, would result in a net tax benefit of $13.5 million and would have a positive effect on the Company’s effective tax rate. During the year ended December 31, 2013, there was an increase in the gross unrecognized tax benefit of $79.4 million primarily as a result of the AACC Merger as discussed in Note 3, “Business Combinations.”

During 2013, the Company accrued interest of $1.4 million related to prior years’ uncertain tax positions. In total as of December 31, 2013, the Company recorded a liability for potential interest of $11.7 million. The interest accrual is recorded as part of the provision for income taxes.

The Company believes that it is reasonably possible that its $83.0 million gross unrecognized tax benefits will decrease within the next 12 months. The majority of the gross unrecognized tax benefits relate to uncertain tax positions associated with the acquisition of AACC. The event that may significantly reduce the unrecognized tax benefits is the completion of a federal tax audit of AACC. The unrecognized tax benefits are included in other liabilities on the Company’s consolidated statements of financial condition.

The Company files U.S. federal, state, and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2010 through 2013 tax years remain subject to examination by federal taxing authorities for Encore while tax years from 2008 forward remain open to adjustment for AACC. The 2008 through 2013 tax years generally remain subject to examination by state tax authorities, and the 2011 through 2013 tax years remain subject to examination by foreign tax authorities.

The Company’s UK subsidiary has a net operating loss carry forward in the amount of approximately $30.4 million, which can be carried forward indefinitely.

Commitments And Contingencies Disclosure [Abstract]

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies

Note 14: Commitments and Contingencies

Litigation

The Company is involved in disputes, legal actions, regulatory investigations, inquiries, and other actions from time to time in the ordinary course of business. The Company, along with others in its industry, are routinely subject to legal actions based on the Fair Debt Collection Practices Act (“FDCPA”), comparable state statutes, the Telephone Consumer Protection Act (“TCPA”), state and federal unfair competition statutes, and common law causes of action. The violations of law alleged in these actions often include claims that the Company lacks specified licenses to conduct its business, attempts to collect debts on which the statute of limitations has run, has made inaccurate assertions of fact in support of its collection actions and/or has acted improperly in connection with its efforts to contact consumers. Such litigation and regulatory actions involve potential compensatory or punitive damage claims, fines, sanctions, or injunctive relief. Many continue on for some length of time and involve substantial litigation, effort, and negotiation before a result is achieved, and during the process the Company often cannot determine the substance or timing of any eventual outcome.

On May 19, 2008, an action captioned Brent v. Midland Credit Management, Inc. et. al was filed in the United States District Court for the Northern District of Ohio Western Division, in which the plaintiff filed a class action counter-claim against two of the Company’s subsidiaries (the “Midland Defendants”). The complaint alleged that the Midland Defendants’ business practices violated consumers’ rights under the FDCPA and the Ohio Consumer Sales Practices Act. The plaintiff sought actual and statutory damages for the class of Ohio residents, plus attorney’s fees and costs of class notice and class administration. The dollar amount of damages originally sought in the case was an unspecified amount in excess of $25,000. On August 12, 2011, the court issued an order granting final approval to the parties agreed upon settlement of this lawsuit, as well as two other pending lawsuits in the Northern District of Ohio entitled Franklin v. Midland Funding LLC and Vassalle v. Midland Funding LLC, on a national class basis, and dismissed the cases against the Midland Defendants with prejudice. That order was subsequently appealed by certain objectors to the settlement, and on February 26, 2013, the Court of Appeals for the Sixth Circuit reversed the district court’s order approving the settlement, vacated the judgment certifying a nationwide settlement class, and remanded the case back to the Northern District of Ohio for further proceedings consistent with the Sixth Circuit’s ruling. By agreement dated November 8, 2013, the parties entered into a revised agreement to settle the lawsuits on a national class basis, subject to obtaining court approval after notice to the class. The Company has vigorously denied the claims asserted against it in these matters, but has agreed to the proposed settlement to avoid the burden and expense of continued litigation. Subject to court approval, settlement awards to eligible class members, as well as fees and costs, will be paid from a settlement fund of approximately $5.2 million, which has already been paid by the Company and its insurer in connection with the previous proposed settlement. If the number of class members who make claims exceeds a certain level, the total settlement could increase to an amount not to exceed $5.7 million. On November 27, 2013, the district court issued an order granting preliminary approval of the parties’ revised agreed upon settlement of this lawsuit, and will hold a hearing on the fairness and reasonableness of the agreement and whether final approval should be given to it on May 15, 2014.

On November 2, 2010 and December 17, 2010, two national class actions entitled Robinson v. Midland Funding LLC and Tovar v. Midland Credit Management, respectively, were filed in the United States District Court for the Southern District of California. The complaints allege that certain of the Company’s subsidiaries violated the TCPA by calling consumers’ cellular phones without their prior express consent. The complaints seek monetary damages under the TCPA, injunctive relief, and other relief, including attorney fees. On May 10, 2011 and May 11, 2011 two class actions entitled Scardina v. Midland Credit Management, Inc., Midland Funding LLC and Encore Capital Group, Inc. and Martin v. Midland Funding, LLC, respectively, were filed in the United States District Court for the Northern District of Illinois. The complaints allege on behalf of a putative class of Illinois consumers that certain of the Company’s subsidiaries violated the TCPA by calling consumers’ cellular phones without their prior express consent. The complaints seek monetary damages under the TCPA, injunctive relief, and other relief, including attorney fees. On July 28, 2011, the Company filed a motion to transfer the Scardina and Martin cases to the United States District Court for the Southern District of California to be consolidated with the Tovar and Robinson cases. On October 11, 2011, the United States Judicial Panel on Multidistrict Litigation granted the Company’s motion to transfer. All four of these cases are now pending in the United States District Court for the Southern District of California in a multidistrict litigation titled In re Midland Credit Management Inc. Telephone Consumer Protection Act Litigation. The lead plaintiffs filed an amended consolidated complaint on July 11, 2012. On October 17, 2012, a national class action titled Hartman v. Midland Credit Management, Inc. was filed in the Middle District of Florida. The complaint in Hartman alleged that the Company’s subsidiary violated the TCPA by calling consumers’ cellular phones without their prior express consent. On November 20, 2012, the Hartman case was transferred to the Southern District of California to be consolidated with the multidistrict litigation. There have been, and may continue to be from time to time, similar claims filed against the Company alleging violations of the TCPA.

On March 8, 2013, March 19, 2013 and March 20, 2013, three actions entitled Shell v. Asset Acceptance Capital Corp., et. al., Neumann v. Asset Acceptance Capital Corp., et. al., and Jaluka v. Asset Acceptance Capital Corp. et. al., respectively, were filed in the Macomb County Circuit Court of the State of Michigan. On April 19, 2013, a fourth action entitled Dix v. Asset Acceptance Capital Corp. et al was filed in the Court of Chancery of the State of Delaware. These actions were brought by purported stockholders of AACC against the Company, AACC, and certain other named entities and individuals, and allege, among other things, that the Company has aided and abetted AACC’s directors in breaching their fiduciary duties of care, loyalty and candor or disclosure owed to AACC stockholders. Plaintiffs in the actions sought, among other things, injunctive relief prohibiting consummation of the proposed acquisition, or rescission of the proposed acquisition (in the event the transaction has already been consummated), as well as costs and disbursements, including reasonable attorneys’ and experts’ fees, and other equitable or injunctive relief as the court may deem just and proper. The plaintiffs did not specify the dollar amount of damages sought in each action. On June 2, 2013, AACC entered into a Memorandum of Understanding (the “MOU”) with the plaintiffs in the Michigan actions and Delaware action that sets forth the parties’ agreement in principle for settlement. As explained in the MOU, without admitting any wrongdoing, AACC agreed to make certain additional disclosures related to the proposed merger, and to enter into a stipulation of settlement providing for the certification of a class, for settlement purposes only, that includes certain persons or entities who held shares of AACC common stock and the release of all asserted claims. On September 16, 2013, AACC entered into a stipulation of settlement which sets forth the terms of the MOU. On December 16, 2013, the Michigan court issued an order granting final approval to the parties agreed upon settlement of the lawsuits, awarded the attorneys for the class members attorneys’ fees and costs in the amount of $550,000, and dismissed the Michigan actions with prejudice. On January 17, 2014, as a result of approval of the settlement by the Michigan court, the Delaware action was also dismissed with prejudice.

In certain legal proceedings, the Company may have recourse to insurance or third party contractual indemnities to cover all or portions of its litigation expenses, judgments, or settlements. In accordance with authoritative guidance, the Company records loss contingencies in its financial statements only for matters in which losses are probable and can be reasonably estimated. Where a range of loss can be reasonably estimated with no best estimate in the range, the Company records the minimum estimated liability. The Company continuously assesses the potential liability related to its pending litigation and revises its estimates when additional information becomes available. As of December 31, 2013, the Company has no material reserves for litigation. Additionally, based on the current status of litigation matters, either the estimate of exposure is immaterial to the Company’s financial statements or an estimate cannot yet be determined. The Company’s legal costs are recorded to expense as incurred.

Leases

The Company leases office facilities in the United States, India, United Kingdom, Ireland, Costa Rica, Colombia, and Peru. The leases are structured as operating leases, and the Company incurred related rent expense in the amounts of $12.0 million, $6.9 million, and $5.8 million during the years ended December 31, 2013, 2012, and 2011, respectively.

The Company has capital lease obligations primarily for certain computer equipment. Refer to Note 10 “Debt—Capital Lease Obligations” for additional information on the Company’s capital leases. Amortization of assets under capital leases is included in depreciation and amortization expense.

Future minimum lease payments under lease obligations consist of the following for the years ending December 31 (in thousands):


	Capital Leases			Operating Leases		Total
2014	$	5,903		$	17,582	$	23,485
2015		4,242			15,824		20,066
2016		2,262			12,624		14,886
2017		519			10,861		11,380
2018		110			8,115		8,225
Thereafter		—			20,540		20,540

Total minimal leases payments		13,036		$	85,546	$	98,582

Less: Interest		(817	)

Present value of minimal lease payments	$	12,219

Purchase Commitments

In the normal course of business, the Company enters into forward flow purchase agreements and other purchase commitment agreements. As of December 31, 2013, the Company has entered into agreements to purchase receivable portfolios with a face value of approximately $770.1 million for a purchase price of approximately $93.5 million. The Company has no purchase commitments extending past one year.

Guarantees

Encore’s Certificate of Incorporation and indemnification agreements between the Company and its officers and directors provide that the Company will indemnify and hold harmless its officers and directors for certain events or occurrences arising as a result of the officer or director serving in such capacity. The Company has also agreed to indemnify certain third parties under certain circumstances pursuant to the terms of certain underwriting agreements, registration rights agreements, credit facilities, portfolio purchase and sale agreements, and other agreements entered into by the Company in the ordinary course of business. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. The Company believes the estimated fair value of these indemnification agreements is minimal and, as of December 31, 2013, has no liabilities recorded for these agreements.

The entire disclosure for commitments and contingencies.

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Segment Information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Information

Note 15: Segment Information

The Company conducts business primarily through two reportable segments: portfolio purchasing and recovery and tax lien business. The Company’s management relies on internal management reporting processes that provide segment revenue, segment operating income, and segment asset information in order to make financial decisions and allocate resources. The operating results from the Company’s tax lien business segment are immaterial to the Company’s total consolidated operating results. However, total assets from the tax lien business segment are significant as compared to the Company’s total consolidated assets. As a result, in accordance with authoritative guidance on segment reporting, the Company’s tax lien business segment is determined to be a reportable segment.

Segment operating income includes income from operations before depreciation, amortization of intangible assets, and stock-based compensation expense. The following table provides a reconciliation of revenue and segment operating income by reportable segment to consolidated results and was derived from the segments’ internal financial information as used for corporate management purposes (in thousands):


	Year Ended December 31,
	2013			2012			2011
Revenues:
Portfolio purchasing and recovery	$	756,277		$	545,419		$	448,746
Tax lien business		17,087			11,358			—

	$	773,364		$	556,777		$	448,746

Operating income:
Portfolio purchasing and recovery	$	219,510		$	164,038		$	131,970
Tax lien business		5,045			5,677			—

		224,555			169,715			131,970
Depreciation and amortization		(13,547	)		(5,840	)		(4,081	)
Stock-based compensation		(12,649	)		(8,794	)		(7,709	)
Other expense		(77,491	)		(24,756	)		(21,511	)

Income from continuing operations before income taxes	$	120,868		$	130,325		$	98,669

Additionally, assets are allocated to operating segments for management review. As of December 31, 2013, total segment assets were $2.4 billion and $253.4 million for the portfolio purchasing and recovery segment and tax lien business segment, respectively.

The following presents information about geographic areas in which the Company operates (in thousands):


	Year Ended December 31,
	2013		2012		2011
Revenues⁽¹⁾ :
United States	$	677,873	$	556,777	$	448,746
United Kingdom		95,491		—		—

	$	773,364	$	556,777	$	448,746

⁽¹⁾	Revenues are attributed to countries based on location of customer.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

Goodwill And Intangible Assets Disclosure [Abstract]

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+ Details

Goodwill and Identifiable Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill and Identifiable Intangible Assets

Note 16: Goodwill and Identifiable Intangible Assets

In accordance with authoritative guidance, goodwill is tested at the reporting unit level annually for impairment and in interim periods if certain events occur that indicate the fair value of a reporting unit may be below its carrying value. Goodwill was allocable to reporting units included in the Company’s reportable segments, as follows (in thousands):


	Portfolio Purchasing and Recovery			Tax Lien Business			Total
Balance, December 31, 2012	$	6,047		$	49,399		$	55,446
Goodwill acquired		429,621			3,887			433,508
Goodwill adjustment		(5,121	)		(4,009	)		(9,130	)
Effect of foreign currency translation		24,389			—			24,389

Balance, December 31, 2013	$	454,936		$	49,277		$	504,213

The Company’s acquired intangible assets are summarized as follows (in thousands):


	As of December 31, 2013							As of December 31, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	1,975	$	(75	)	$	1,901	$	—	$	—		$	—
Developed technologies		4,909		(468	)		4,441		—		—			—
Trade name and other		15,631		(386	)		15,245		570		(83	)		487
Other intangibles—indefinite lived		1,962		—			1,962		—		—			—

Total intangible assets	$	24,477	$	(929	)	$	23,549	$	570	$	(83	)	$	487

The weighted-average useful lives of intangible assets at the time of acquisition are as follows:


	Weighted-Average Useful Lives
Customer relationships		9
Developed technologies		5
Trade name and other		13

The amortization expense for intangible assets that are subject to amortization was $0.8 million, less than $0.1 million, and $0.3 million for the years ended December 31, 2013, 2012, and 2011, respectively. Estimated future amortization expense related to finite-lived intangible assets at December 31, 2013 is as follows: (in thousands):


	In thousands
2014	$	2,877
2015		2,809
2016		2,619
2017		2,482
2018		1,741
Thereafter		9,059

Total	$	21,587

Quarterly Financial Information Disclosure [Abstract]

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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Quarterly Information

12 Months Ended

Dec. 31, 2013

Quarterly Information

Note 17: Quarterly Information (Unaudited)

The following table summarizes quarterly financial data for the periods presented (in thousands, except per share amounts):


	Three Months Ended
	March 31		June 30		September 30		December 31
2013
Gross collections	$	270,170	$	278,388	$	379,670	$	351,278
Revenues		144,586		156,121		235,558		237,099
Total operating expenses		105,872		126,238		174,429		168,466
Income from continuing operations		19,448		11,012		21,372		23,648
Net income		19,448		11,012		21,064		22,216
Amounts attributable to Encore Capital Group, Inc.:
Income from continuing operations		19,448		11,012		22,194		24,385
Net income		19,448		11,012		21,886		22,953
Earnings per share attributable to Encore Capital Group, Inc.:
From continuing operations:
Basic	$	0.83	$	0.46	$	0.87	$	0.95
Diluted		0.80		0.44		0.82		0.87
From net income:
Basic	$	0.83	$	0.46	$	0.86	$	0.90
Diluted		0.80		0.44		0.81		0.82
2012
Gross collections	$	231,028	$	240,560	$	245,977	$	230,490
Revenues		126,410		141,246		145,218		143,903
Total operating expenses		91,394		102,809		103,621		103,872
Income from continuing operations		18,108		18,988		21,308		20,167
Net income		11,406		16,596		21,308		20,167
Earnings per share:
From continuing operations:
Basic	$	0.73	$	0.76	$	0.85	$	0.82
Diluted		0.70		0.74		0.82		0.79
From net income:
Basic	$	0.46	$	0.67	$	0.85	$	0.82
Diluted		0.44		0.64		0.82		0.79

Portfolio Purchasing and Recovery

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

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Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2013
Subsequent Events [Abstract]
Subsequent Events	Note 18: Subsequent Events *Marlin Acquisition* On February 7, 2014, Cabot, through its subsidiary Cabot Financial Holdings Group Limited (“Cabot Financial Holdings”), entered into a Share Sale and Purchase Agreement (the “Marlin Purchase Agreement”), pursuant to which Cabot acquired (a) the entire issued share capital of Marlin Financial Group Limited, a company organized under the laws of England (“Marlin”) and (b) certain subordinated fixed rate loan notes of Marlin Financial Intermediate Limited, a company organized under the laws of England, which is a direct wholly owned subsidiary of Marlin (the “Marlin Acquisition”), from funds managed by Duke Street and certain individuals, including certain executive management of Marlin (collectively, the “Sellers”). Pursuant to the terms and conditions of the Marlin Purchase Agreement and certain ancillary agreements, Cabot Financial Holdings purchased from the Sellers all of the issued and outstanding equity securities of Marlin and certain subordinated fixed rate loan notes of Marlin Financial Intermediate Limited and assumed substantially all of the outstanding debt of Marlin Intermediate Holdings plc, a subsidiary of Marlin, for an aggregate purchase price of approximately £295.0 million (approximately $481.0 million). *Senior Secured Bridge Facilities* The Marlin Acquisition was financed with borrowings under the existing revolving credit facility of Cabot Financial (UK) Limited (the “Revolving Credit Facility”), a subsidiary of Cabot Financial Holdings, and under new senior secured bridge facilities (the “Senior Secured Bridge Facilities”) provided by J.P. Morgan Limited, Deutsche Bank AG, London Branch, Lloyds Bank plc, The Royal Bank of Scotland plc and UBS Limited entered into on February 7, 2014 pursuant to a Senior Secured Bridge Facilities Agreement. The Senior Secured Bridge Facilities Agreement provides for (a) a senior secured bridge facility in an aggregate principal amount of up to £105.0 million (“Bridge Facility A”) and (b) a senior secured bridge facility in an aggregate principal amount of up to £151.5 million (“Bridge Facility B,” and together with Bridge Facility A, the “Bridge Facilities”). The purpose of Bridge Facility A is to provide funding for the financing, in full or in part, of the purchase price for the Marlin Acquisition and the payment of costs, fees and expenses in connection with the Marlin Acquisition, and was fully drawn on as of the closing of the Marlin Acquisition. The purpose of Bridge Facility B is to finance, in full or in part, the repurchase of any bonds tendered in any change of control offer required to be made to the holders of the £150 million 10.5% Senior Secured Notes due 2020 issued by Marlin Intermediate Holdings plc (the “Marlin Bonds”) and the premium payable thereon. Bridge Facility B was intended to be utilized only to the extent that any holders of the Marlin Bonds elect to tender their Marlin Bonds within a defined period. That period has expired, no Marlin Bonds were tendered and Bridge Facility B has expired without drawdown. The Senior Secured Bridge Facilities Agreement also provides for uncommitted incremental facilities in an amount of up to £80.0 million for the purposes of financing future debt portfolio acquisitions. The Senior Secured Bridge Facilities have an initial term of one year and an extended term of 6.5 years if they are not repaid during the first year of issuance. Prior to their initial maturity date, the rate of interest payable under the Senior Secured Bridge Facilities is the aggregate, per annum, of (i) LIBOR, plus (ii) an initial spread of 6.00% per annum (such spread stepping up by 50 basis points for each three-month period that the Senior Secured Bridge Facilities remain outstanding), not to exceed total caps set forth in the Senior Secured Bridge Facilities Agreement. The Senior Secured Bridge Facilities are subject to mandatory prepayment with equity proceeds or the proceeds of other debt financings (subject to certain exceptions), at par prior to their initial maturity date. The Senior Secured Bridge Facilities have covenants that are substantially similar to those set forth in the Revolving Credit Facility (but prior to the initial maturity date, restricting the group from certain types of debt incurrence or restricted payments). The Senior Secured Bridge Facilities are guaranteed by all of the subsidiaries of Cabot Financial Limited other than Cabot Financial Holdings and share in the collateral granted to the existing senior secured notes issued by Cabot Financial (Luxembourg) S.A. on a pari passu basis. The events of default under the Senior Secured Bridge Facilities are substantially similar to those set forth in the Revolving Credit Facility and include, among other things, payment and covenant breaches and insolvencies of Cabot Financial Holdings or significant subsidiaries. *Restated Credit Agreement* On February 25, 2014, Encore amended its Restated Credit Agreement. The Restated Credit Agreement includes a revolving credit facility tranche of $692.6 million, a term loan facility tranche of $153.8 million, and an accordion feature that would allow the Company to increase the revolving credit facility by an additional $250.0 million. Including the accordion feature, the maximum amount that can be borrowed under the Restated Credit Facility is $1.1 billion. The Restated Credit Agreement has a five-year maturity, expiring in February 2019, except with respect to two subtranches of the term loan facility of $60.0 million and $6.3 million, expiring in February 2017 and November 2017, respectively. Refer to Note 10, “Debt,” for additional information related to the Restated Credit Agreement. *Acquisition of Grove Holdings* On February 22, 2014, the Company agreed to acquire approximately 68.2% of equity ownership interest in Grove Holdings (“Grove”). Grove, through its subsidiaries, is a leading specialty investment firm focused on consumer non-performing loans, including insolvencies in the United Kingdom (in particular, individual voluntary arrangements, or IVAs) and non-bank receivables in Spain. The transaction is subject to regulatory approval and is anticipated to close in the first quarter of 2014.

Ownership, Description of Business, and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Portfolio Purchasing and Recovery

Tax Lien Business

Tax Lien Business

Basis of Consolidation

Basis of Consolidation

Translation of Foreign Currencies

Translation of Foreign Currencies

Reclassifications

Reclassifications

Certain immaterial amounts in the 2012 and 2011 consolidated financial statements have been reclassified to conform to the 2013 presentation.

Use of Estimates

Use of Estimates

Cash and Cash Equivalents

Cash and Cash Equivalents

Investment in Receivable Portfolios

Investment in Receivable Portfolios

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

See Note 16 “Goodwill and Identifiable Intangible Assets” for further discussion of the Company’s goodwill and other intangible assets.

Property and Equipment

Property and Equipment


Fixed Asset Category		Estimated Useful Life
Leasehold improvements		Lesser of lease term, including periods covered by renewal options, or useful life
Furniture, fixtures and equipment		5 to 10 years
Computer hardware and software		3 to 5 years

Deferred Court Costs

Deferred Court Costs

Receivables Secured by Property Tax Liens, Net

Receivables Secured by Property Tax Liens, Net

Income Taxes

Income Taxes

Management must make significant judgments to determine the provision for income taxes, deferred tax assets and liabilities, and any valuation allowance to be recorded against deferred tax assets.

Stock-Based Compensation

Stock-Based Compensation

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

Redeemable Noncontrolling Interests

Redeemable Noncontrolling Interests

Earnings Per Share

Earnings Per Share

A reconciliation of shares used in calculating earnings per basic and diluted shares follows (in thousands):


	Year Ended December 31,
	2013		2012		2011
Weighted average common shares outstanding—basic		24,659		24,855		24,572
Dilutive effect of stock-based awards		950		981		1,118
Dilutive effect of convertible senior notes		595		—		—

Weighted average common shares outstanding—diluted		26,204		25,836		25,690

During the fourth quarter of 2012, concurrent with the issuance of its $115.0 million convertible senior notes due 2017, the Company entered into privately negotiated transactions with certain counterparties and sold warrants to purchase approximately 3.6 million shares of its common stock. The sold warrants had an exercise price of $44.19. On December 16, 2013, the Company entered into amendments with the same counterparties to exchange the original warrants with new warrants with an exercise price of $60.00. All other terms and settlement provisions remain unchanged. Warrants representing approximately 358,000 shares of the Company’s common stock have been modified by December 31, 2013. The remaining 3.2 million shares represented by the warrants were modified between January 1, 2014 and February 6, 2014. Refer to Note 10, “Debt—Encore Convertible Senior Notes—2017 Convertible Senior Notes” for further details of the warrant restrike transaction.

Ownership, Description of Business, and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Estimated Useful Lives of Property and Equipment

The provision for depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets as follows:


Fixed Asset Category		Estimated Useful Life
Leasehold improvements		Lesser of lease term, including periods covered by renewal options, or useful life
Furniture, fixtures and equipment		5 to 10 years
Computer hardware and software		3 to 5 years

Reconciliation of Shares Used in Calculating Earnings Per Basic and Diluted Shares

A reconciliation of shares used in calculating earnings per basic and diluted shares follows (in thousands):


	Year Ended December 31,
	2013		2012		2011
Weighted average common shares outstanding—basic		24,659		24,855		24,572
Dilutive effect of stock-based awards		950		981		1,118
Dilutive effect of convertible senior notes		595		—		—

Weighted average common shares outstanding—diluted		26,204		25,836		25,690

Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2013

Discontinued Operations And Disposal Groups [Abstract]

Revenue and Components of Discontinued Operations

The following table presents the revenue and components of discontinued operations (in thousands):


	Year Ended December 31,
	2013			2012			2011
Revenue	$	—		$	5,704		$	18,626

(Loss) income from discontinued operations before income taxes	$	(2,900	)	$	(11,942	)	$	595
Income tax benefit (expense)		1,160			4,678			(230	)

(Loss) income from discontinued operations		(1,740	)		(7,264	)		365

Loss on sale of discontinued operations, before income taxes		—			(2,416	)		—
Income tax benefit		—			586			—

Loss on sale of discontinued operations		—			(1,830	)		—

Total (loss) income from discontinued operations	$	(1,740	)	$	(9,094	)	$	365

Summary of Operating Performance

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

+ References+ Details

Business Combinations (Tables)

12 Months Ended

Dec. 31, 2013

The following table summarizes the operating performance of Janus Holdings and Encore Europe (in thousands):


	Year Ended December 31, 2013
	Janus Holdings			Encore Europe		Encore Europe Consolidated
Total revenues	$	95,491		$	—	$	95,491
Total operating expenses		(48,890	)		—		(48,890	)

Income from operations		46,601			—		46,601

Interest expense—non-PEC		(26,265	)		—		(26,265	)
PEC interest (expense) income		(21,616	)		10,235		(11,381	)
Other income		98			—		98

(Loss) income before income taxes		(1,182	)		10,235		9,053
Provision for income taxes		(1,574	)		—		(1,574	)

Net (loss) income		(2,756	)		10,235		7,479
Net loss attributable to noncontrolling interests		392			1,167		1,559

Net (loss) income attributable to Encore	$	(2,364	)	$	11,402	$	9,038

Pro Forma Consolidated Results of Operations

The following unaudited pro forma financial information does not necessarily reflect the actual results that would have occurred had Encore, Cabot, and AACC been combined during the periods presented, nor is it necessarily indicative of the future results of operations of the combined companies (in thousands):


	(Unaudited) Year Ended December 31,
	2013		2012
Consolidated pro forma revenue	$	949,337	$	929,579
Consolidated pro forma income from continuing operations		92,378		101,762

Cabot Acquisition [Member]

Components of Purchase Price Allocation for Acquisition/Merger

The components of the purchase price allocation for the Cabot Acquisition are as follows (in thousands):


Purchase price:
Cash paid at acquisition	$	177,246

Allocation of purchase price:
Cash	$	57,520
Investment in receivable portfolios		558,951
Property and equipment		13,672
Other assets		20,349
Preferred equity certificates assumed		(211,549	)
Debt assumed		(559,907	)
Other liabilities assumed		(45,142	)
Redeemable noncontrolling interests		(12,064	)
Noncontrolling interests		(4,051	)
Identifiable intangible assets		7,559
Goodwill		351,908

Total net assets acquired	$	177,246

AACC Merger [Member]

Components of Purchase Price Allocation for Acquisition/Merger

The components of the purchase price allocation for the AACC Merger are as follows (in thousands):


Purchase price:
Cash paid at acquisition	$	316,485
Stock consideration		62,352

Total purchase price	$	378,837

Allocation of purchase price:
Cash	$	23,156
Investment in receivable portfolios		383,382
Deferred court costs		6,940
Property and equipment		11,003
Other assets		16,004
Liabilities assumed		(126,059	)
Identifiable intangible assets		1,470
Goodwill		62,941

Total net assets acquired	$	378,837

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

Financial assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):


	Fair Value Measurements as of December 31, 2013
	Level 1		Level 2			Level 3			Total
Assets
Foreign currency exchange contracts	$	—	$	46		$	—		$	46
Interest rate cap contracts		—		202			—			202
Liabilities
Foreign currency exchange contracts	$	—	$	(4,123	)		—		$	(4,123	)
Temporary Equity
Redeemable noncontrolling interests	$	—	$	—		$	(26,564	)	$	(26,564	)


	Fair Value Measurements as of December 31, 2012
	Level 1		Level 2			Level 3		Total
Liabilities
Interest rate swap agreements	$	—	$	(645	)	$	—	$	(645	)
Foreign currency exchange contracts		—		(2,010	)		—		(2,010	)

Change in Redeemable Noncontrolling Interests

The components of the change in the redeemable noncontrolling interests for the periods ended December 31, 2013 are presented in the following table:


	Amount
Balance at December 31, 2012	$	—
Initial redeemable noncontrolling interest related to business combinations		25,517
Net loss attributable to redeemable noncontrolling interests		(1,167	)
Adjustment of the redeemable noncontrolling interests to fair value		1,167
Effect of foreign currency translation attributable to redeemable noncontrolling interests		1,047

Balance at December 31, 2013	$	26,564

Derivatives and Hedging Instruments (Tables)

12 Months Ended

Dec. 31, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Summary of Fair Value of Derivative Instruments as Recorded on Company's Consolidated Statements of Financial Condition

The following table summarizes the fair value of derivative instruments as recorded in the Company’s consolidated statements of financial condition (in thousands):


	December 31, 2013					December 31, 2012
	Balance Sheet Location		Fair Value			Balance Sheet Location		Fair Value
Derivatives designated as hedging instruments:
Foreign currency exchange contracts		Other liabilities	$	(4,123	)		Other liabilities	$	(2,010	)
Foreign currency exchange contracts		Other assets		46			—		—
Interest rate swaps		—		—			Other liabilities		(645	)
Derivatives not designated as hedging instruments:
Interest rate cap		Other assets		202			—		—

Summary of Effects of Derivatives in Cash Flow Hedging Relationships in Company's Statements of Income

The following table summarizes the effects of derivatives in cash flow hedging relationships on the Company’s statements of income for the years ended December 31, 2013 and 2012 (in thousands):


	Gain or (Loss) Recognized in OCI- Effective Portion						Location of Gain or (Loss) Reclassified from OCI into Income - Effective Portion	Gain or (Loss) Reclassified from OCI into Income - Effective Portion						Location of Gain or (Loss) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing	Amount of Gain or (Loss) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing
	2013			2012				2013			2012				2013		2012
Interest rate swaps	$	645		$	369		Interest expense	$	—		$	—		Other (expense) income	$	—	$	—
Foreign currency exchange contracts		(3,031	)		(1,224	)	Salaries and employee benefits		(1,362	)		(1,230	)	Other (expense) income		—		—
Foreign currency exchange contracts		(658	)		(25	)	General and administrative expenses		(260	)		(212	)	Other (expense) income		—		—

Investment in Receivable Portfolios, Net (Tables)

12 Months Ended

Dec. 31, 2013

Receivables [Abstract]

Summary of Accretable Yield and an Estimate of Zero Basis Future Cash Flows

The following table summarizes the Company’s accretable yield and an estimate of zero basis future cash flows at the beginning and end of the period presented (in thousands):


	Accretable Yield			Estimate of Zero Basis Cash Flows			Total
Balance at December 31, 2011	$	821,527		$	32,676		$	854,203
Revenue recognized, net		(519,136	)		(26,276	)		(545,412	)
Net additions on existing portfolios⁽¹⁾		229,207			10,966			240,173
Additions for current purchases⁽¹⁾		453,346			—			453,346

Balance at December 31, 2012	$	984,944		$	17,366		$	1,002,310

Revenue recognized, net		(717,733	)		(27,119	)		(744,852	)
Net additions on existing portfolios⁽¹⁾		357,189			18,218			375,407
Additions for current purchases⁽¹⁾⁽²⁾		1,767,071			—			1,767,071

Balance at December 31, 2013	$	2,391,471		$	8,465		$	2,399,936

⁽¹⁾	Estimated remaining collections and accretable yield include anticipated collections beyond the 84 to 96 month collection forecast for United States portfolios.

⁽²⁾	Includes $383.4 million of portfolios acquired in connection with the AACC Merger and $559.0 million of portfolios acquired in connection with the Cabot Acquisition discussed in Note 3, “Business Combinations.”

Summary of Changes in Balance of the Investment in Receivable Portfolios

The following tables summarize the changes in the balance of the investment in receivable portfolios during the following periods (in thousands, except percentages):


	Year Ended December 31, 2013
	Accrual Basis Portfolios			Cost Recovery Portfolios			Zero Basis Portfolios			Total
Balance, beginning of period	$	873,119		$	—		$	—		$	873,119
Purchases of receivable portfolios ⁽¹⁾		1,203,706			1,073			—			1,204,779
Transfer of portfolios		(6,649	)		6,649			—			—
Gross collections⁽²⁾		(1,249,625	)		(2,764	)		(27,117	)		(1,279,506	)
Put-backs and recalls		(2,331	)		(296	)		(2	)		(2,629	)
Foreign currency adjustments		49,634			—			—			49,634
Revenue recognized		715,458			—			17,201			732,659
Portfolio allowance reversals, net		2,275			—			9,918			12,193

Balance, end of period	$	1,585,587		$	4,662		$	—		$	1,590,249

Revenue as a percentage of collections⁽³⁾		57.3	%		0.0	%		63.4	%		57.3	%


	Year Ended December 31, 2012
	Accrual Basis Portfolios			Cost Recovery Portfolios			Zero Basis Portfolios			Total
Balance, beginning of period	$	716,454		$	—		$	—		$	716,454
Purchases of receivable portfolios⁽¹⁾		562,335			—			—			562,335
Gross collections⁽²⁾		(921,730	)		—			(26,276	)		(948,006	)
Put-backs and recalls		(3,076	)		—			—			(3,076	)
Revenue recognized		518,617			—			22,574			541,191
Portfolio allowance reversals, net		519			—			3,702			4,221

Balance, end of period	$	873,119		$	—		$	—		$	873,119

Revenue as a percentage of collections⁽³⁾		56.3	%		0.0	%		85.9	%		57.1	%


	Year Ended December 31, 2011
	Accrual Basis Portfolios			Cost Recovery Portfolios			Zero Basis Portfolios			Total
Balance, beginning of period	$	644,753		$	—		$	—		$	644,753
Purchases of receivable portfolios⁽¹⁾		386,850			—			—			386,850
Gross collections⁽²⁾		(740,402	)		—			(20,609	)		(761,011	)
Put-backs and recalls		(2,843	)		—			(9	)		(2,852	)
Revenue recognized		443,367			—			16,170			459,537
(Portfolio allowances) portfolio allowance reversals, net		(15,271	)		—			4,448			(10,823	)

Balance, end of period	$	716,454		$	—		$	—		$	716,454

Revenue as a percentage of collections⁽³⁾		59.9	%		0.0	%		78.5	%		60.4	%

⁽¹⁾	Purchases of portfolio receivables include $383.4 million acquired in connection with the AACC Merger in June 2013 and $559.0 million acquired in connection with the Cabot Acquisition in July 2013 discussed in Note 3, “Business Combinations.”

⁽²⁾	Does not include amounts collected on behalf of others.

⁽³⁾	Revenue as a percentage of collections excludes the effects of net portfolio allowances or net portfolio allowance reversals.

Summary of Change in the Valuation Allowance for Investment in Receivable Portfolios

The following table summarizes the change in the valuation allowance for investment in receivable portfolios during the periods presented (in thousands):


	Valuation Allowance
Balance at December 31, 2010	$	98,671

Provision for portfolio allowances		17,707
Reversal of prior allowances		(6,884	)

Balance at December 31, 2011	$	109,494

Provision for portfolio allowances		6,745
Reversal of prior allowances		(10,966	)

Balance at December 31, 2012	$	105,273

Provision for portfolio allowances		479
Reversal of prior allowances		(12,672	)

Balance at December 31, 2013	$	93,080

Deferred Court Costs, Net (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Deferred Court Costs

Deferred Court Costs consist of the following as of the dates presented (in thousands):


	December 31, 2013			December 31, 2012
Court costs advanced	$	399,274		$	279,314
Court costs recovered		(147,166	)		(94,827	)
Court costs reserve		(210,889	)		(149,080	)

	$	41,219		$	35,407

Schedule of Court Cost Reserve

A roll forward of the Company’s court cost reserve is as follows (in thousands):


	December 31, 2013			December 31, 2012			December 31, 2011
Balance at beginning of period	$	(149,080	)	$	(130,454	)	$	(113,239	)
Provision for court costs		(61,809	)		(53,946	)		(54,939	)
Write-off of reserve after the 36th month		—			35,320			37,724

Balance at end of period	$	(210,889	)	$	(149,080	)	$	(130,454	)

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2013

Property Plant And Equipment [Abstract]

Property and Equipment

Property and equipment consist of the following, as of the dates presented (in thousands):


	December 31, 2013			December 31, 2012
Furniture, fixtures and equipment	$	15,955		$	7,605
Computer equipment and software		79,765			33,189
Telecommunications equipment		3,589			6,033
Leasehold improvements		15,145			6,692
Other		1,086			—

		115,540			53,519
Less: accumulated depreciation and amortization		(59,757	)		(30,296	)

	$	55,783		$	23,223

Other Assets (Tables)

12 Months Ended

Dec. 31, 2013

Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]

Components of Other Assets

Other assets consist of the following (in thousands):


	December 31, 2013		December 31, 2012
Service fee receivables	$	29,931	$	—
Debt issuance costs, net of amortization		28,066		14,397
Identifiable intangible assets, net		23,549		487
Prepaid expenses		23,487		6,399
Deferred tax assets		13,974		—
Other financial receivables		7,962		—
Interest receivable		7,956		4,042
Prepaid income taxes		5,009		—
Recoverable legal fees		3,049		1,521
Security deposits		2,500		1,696
Other		9,300		2,993

	$	154,783	$	31,535

Debt (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Obligation Under Borrowings

The Company is obligated under borrowings as follows (in thousands):


	December 31, 2013			December 31, 2012
Encore revolving credit facility	$	356,000		$	258,000
Encore term loan facility		140,625			148,125
Encore senior secured notes		58,750			72,500
Encore convertible notes		287,500			115,000
Less: Debt discount		(42,240	)		(14,442	)
Propel facility		152,292			117,601
Propel Wells Fargo facility		18,338			—
Cabot senior secured notes		603,272			—
Add: Debt premium		43,583			—
Preferred equity certificates		199,821			—
Capital lease obligations		12,219			9,252
Other		20,271			—

	$	1,850,431		$	706,036

Balances of the Liability and Equity Components

The balances of the liability and equity components of all of the convertible notes outstanding were as follows (in thousands):


	December 31, 2013			December 31, 2012
Liability component—principal amount	$	287,500		$	115,000
Unamortized debt discount		(42,240	)		(14,442	)

Liability component—net carrying amount	$	245,260		$	100,558

Equity component	$	46,954		$	14,702

Summary of Debt Including Capital Lease Obligations Maturities

The aggregate amounts of the Company’s debt, including PECs, accrued interests on PECs, and capital lease obligations, maturing in each of the next five years and thereafter are as follows:


	In thousands
2014	$	40,989
2015		226,906
2016		28,459
2017		573,622
2018		2,655
Thereafter		976,458

Total⁽¹⁾	$	1,849,089

⁽¹⁾

Cabot Senior Secured Notes [Member]

Interest Expense

Interest expense related to the Cabot Notes was as follows (in thousands):


	Year Ended December 31, 2013
Interest expense—stated coupon rate	$	27,496
Interest income—appreciation of debt premium		(2,826	)

Total interest expense—Cabot Notes	$	24,670

Convertible Notes [Member]

Interest Expense

Interest expense related to the convertible notes was as follows (in thousands):


	December 31, 2013		December 31, 2012
Interest expense—stated coupon rate	$	6,108	$	307
Interest expense—amortization of debt discount		4,492		260

Total interest expense—convertible notes	$	10,600	$	567

Variable Interest Entity (Tables)

12 Months Ended

Dec. 31, 2013

Assets and Liabilities of Variable Interest Entity

The following table presents Janus Holdings’ assets and liabilities (after elimination of intercompany transactions and balances) in the Company’s consolidated statement of financial condition as of December 31, 2013 (in thousands):


	December 31, 2013
Assets
Cash and cash equivalents	$	62,403
Investment in receivable portfolios, net		620,312
Property and equipment, net		13,755
Other assets		33,772
Goodwill		376,296

Total assets	$	1,106,538

Liabilities
Accounts payable and accrued liabilities	$	47,219
Debt		846,676
Other liabilities		1,897

Total liabilities	$	895,792

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References+ Details

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2013

Weighted-Average Assumptions


	Year Ended December 31,
	2012			2011
Weighted average fair value of options granted	$	11.77		$	13.26
Risk free interest rate		0.9	%		2.0	%
Dividend yield		0.0	%		0.0	%
Volatility factors of the expected market price of the Company’s common stock		63.0	%		61.0	%
Weighted-average expected life of options		5 Years			5 Years

Summary of Stock Option Activity

A summary of the Company’s stock option activity as of December 31, 2013, and changes during the year then ended, is presented below:


	Number of Shares			Option Price Per Share		Weighted Average Exercise Price		Aggregate Intrinsic Value *(in thousands)*
Outstanding at December 31, 2012		1,948,259		$	2.89 –$24.65	$	15.38
Cancelled/forfeited		(61,332	)		22.17 –24.65		23.03
Exercised		(753,755	)		2.89 –24.65		15.56

Outstanding at December 31, 2013		1,133,172		$	2.89 –$24.65	$	14.84	$	40,138

Exercisable at December 31, 2013		987,843		$	2.89 –$24.65	$	13.71	$	36,103

Summary of Restricted Stock Units

A summary of the status of the Company’s restricted stock units and restricted stock awards as of December 31, 2013, and changes during the year then ended, is presented below:


	Non-Vested Shares			Weighted Average Grant Date Fair Value
Non-vested at December 31, 2012		744,016		$	23.51
Awarded		645,266		$	35.03
Vested		(336,772	)	$	22.85
Cancelled/forfeited		(66,775	)	$	26.39

Non-vested at December 31, 2013		985,735		$	31.07

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Effective Tax Rates

The effective tax rates for the respective periods are shown below:


	Year Ended December 31,
	2013			2012
Federal provision		35.0	%		35.0	%
State provision		5.8	%		6.6	%
State benefit		(2.0	%)		(2.3	%)
Changes in state apportionment⁽¹⁾		(0.2	%)		0.0	%
Tax reserves⁽²⁾		0.0	%		0.1	%
International provision⁽³⁾		(2.2	%)		(0.4	%)
Permanent items⁽⁴⁾		2.4	%		0.5	%
Other		(1.2	%)		0.2	%

Effective rate		37.6	%		39.7	%

⁽¹⁾	Represents changes in state apportionment methodologies.

⁽²⁾	Represents reserves taken for certain tax position adopted by the Company.

⁽³⁾	Relates primarily to the lower tax rate on the income attributable to international operations.

⁽⁴⁾	Represents a provision for nondeductible items.

Components of Pretax Income

The pretax income consisted of the following (in thousands):


	Year Ended December 31,
	2013		2012		2011
Domestic	$	105,009	$	122,423	$	92,759
Foreign		15,859		7,902		5,910

	$	120,868	$	130,325	$	98,669

Components of Provision for Income Taxes

The provision for income taxes consisted of the following (in thousands):


	Year Ended December 31,
	2013			2012			2011
Current expense:
Federal	$	50,304		$	48,025		$	30,822
State		7,196			9,537			6,647
Foreign		4,052			2,765			2,407

		61,552			60,327			39,876
Deferred (benefit) expense:
Federal		(13,134	)		(6,801	)		(814	)
State		(2,369	)		(1,301	)		90
Foreign		(661	)		(471	)		(1,076	)

		(16,164	)		(8,573	)		(1,800	)

	$	45,388		$	51,754		$	38,076

Components of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities consisted of the following for the years presented (in thousands):


	December 31, 2013			December 31, 2012
Deferred tax assets:
State taxes	$	2,758		$	1,408
Stock-based compensation expense		7,250			8,888
Accrued expenses		5,015			2,957
Non-qualified plan		97			(136	)
Deferred revenue		38,529			—
Cash flow hedge instruments		1,588			1,037
State and international operating losses		6,490			51
Fixed asset basis—International		86			(26	)
Capitalized legal fees—International		1,609			—
Cumulative translation adjustment		1,509			—
Tax benefit of uncertain tax positions		4,237			—
Valuation allowance		(3,595	)		(13	)

		65,573			14,166

Deferred tax liabilities:
Deferred court costs		(15,445	)		(15,013	)
Difference in basis of amortizable assets		(12,200	)		(7,898	)
Difference in basis of depreciable assets		(6,834	)		(4,134	)
Differences in income recognition related to receivable portfolios		(20,773	)		5,723
Deferred debt cancellation income		(1,222	)		(1,222	)
Other		(2,289	)		142

		(58,763	)		(22,402	)

Net deferred tax asset (liability)	$	6,810		$	(8,236	)

Differences between Total Income Tax Expense and Income Tax Expense

The differences between the total income tax expense and the income tax expense computed using the applicable federal income tax rate of 35% per annum were as follows (in thousands):


	Year Ended December 31,
	2013			2012			2011
Computed “expected” Federal income tax expense	$	42,304		$	45,614		$	34,534
Increase (decrease) in income taxes resulting from:
State income taxes, net		3,138			5,551			4,200
Foreign non-taxed income, rate differential		(2,647	)		(481	)		(772	)
Other adjustments, net		2,593			1,070			114

	$	45,388		$	51,754		$	38,076

Unrecognized Tax Benefit

A reconciliation of the beginning and ending amount of the Company’s unrecognized tax benefit is as follows (in thousands):


	Amount
Balance at December 31, 2012	$	1,784
Current year deletions relating to prior years		(712	)
Current year additions relating to prior years—acquisitions		70,201

Balance at December 31, 2013	$	71,273

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2013

Commitments And Contingencies Disclosure [Abstract]

Future Minimum Lease Payments under Lease Obligations

Future minimum lease payments under lease obligations consist of the following for the years ending December 31 (in thousands):


	Capital Leases			Operating Leases		Total
2014	$	5,903		$	17,582	$	23,485
2015		4,242			15,824		20,066
2016		2,262			12,624		14,886
2017		519			10,861		11,380
2018		110			8,115		8,225
Thereafter		—			20,540		20,540

Total minimal leases payments		13,036		$	85,546	$	98,582

Less: Interest		(817	)

Present value of minimal lease payments	$	12,219

Segment Information (Tables)

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Reconciliation of Revenue and Operating Income from Segments to Consolidated

The following table provides a reconciliation of revenue and segment operating income by reportable segment to consolidated results and was derived from the segments’ internal financial information as used for corporate management purposes (in thousands):


	Year Ended December 31,
	2013			2012			2011
Revenues:
Portfolio purchasing and recovery	$	756,277		$	545,419		$	448,746
Tax lien business		17,087			11,358			—

	$	773,364		$	556,777		$	448,746

Operating income:
Portfolio purchasing and recovery	$	219,510		$	164,038		$	131,970
Tax lien business		5,045			5,677			—

		224,555			169,715			131,970
Depreciation and amortization		(13,547	)		(5,840	)		(4,081	)
Stock-based compensation		(12,649	)		(8,794	)		(7,709	)
Other expense		(77,491	)		(24,756	)		(21,511	)

Income from continuing operations before income taxes	$	120,868		$	130,325		$	98,669

Schedule of Geographical Areas of Which Company Operates

The following presents information about geographic areas in which the Company operates (in thousands):


	Year Ended December 31,
	2013		2012		2011
Revenues⁽¹⁾ :
United States	$	677,873	$	556,777	$	448,746
United Kingdom		95,491		—		—

	$	773,364	$	556,777	$	448,746

⁽¹⁾	Revenues are attributed to countries based on location of customer.

Goodwill and Identifiable Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Weighted-Average Useful Lives of Intangible Assets

The weighted-average useful lives of intangible assets at the time of acquisition are as follows:


	Weighted-Average Useful Lives
Customer relationships		9
Developed technologies		5
Trade name and other		13

Estimated Future Amortization Expense

Estimated future amortization expense related to finite-lived intangible assets at December 31, 2013 is as follows: (in thousands):


	In thousands
2014	$	2,877
2015		2,809
2016		2,619
2017		2,482
2018		1,741
Thereafter		9,059

Total	$	21,587

Schedule of Reportable Segments by Reporting Units

Goodwill was allocable to reporting units included in the Company’s reportable segments, as follows (in thousands):


	Portfolio Purchasing and Recovery			Tax Lien Business			Total
Balance, December 31, 2012	$	6,047		$	49,399		$	55,446
Goodwill acquired		429,621			3,887			433,508
Goodwill adjustment		(5,121	)		(4,009	)		(9,130	)
Effect of foreign currency translation		24,389			—			24,389

Balance, December 31, 2013	$	454,936		$	49,277		$	504,213

Summary of Acquired Intangible Assets

The Company’s acquired intangible assets are summarized as follows (in thousands):


	As of December 31, 2013							As of December 31, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	1,975	$	(75	)	$	1,901	$	—	$	—		$	—
Developed technologies		4,909		(468	)		4,441		—		—			—
Trade name and other		15,631		(386	)		15,245		570		(83	)		487
Other intangibles—indefinite lived		1,962		—			1,962		—		—			—

Total intangible assets	$	24,477	$	(929	)	$	23,549	$	570	$	(83	)	$	487

Quarterly Information (Tables)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Summary of Quarterly Financial Data for Periods

The following table summarizes quarterly financial data for the periods presented (in thousands, except per share amounts):


	Three Months Ended
	March 31		June 30		September 30		December 31
2013
Gross collections	$	270,170	$	278,388	$	379,670	$	351,278
Revenues		144,586		156,121		235,558		237,099
Total operating expenses		105,872		126,238		174,429		168,466
Income from continuing operations		19,448		11,012		21,372		23,648
Net income		19,448		11,012		21,064		22,216
Amounts attributable to Encore Capital Group, Inc.:
Income from continuing operations		19,448		11,012		22,194		24,385
Net income		19,448		11,012		21,886		22,953
Earnings per share attributable to Encore Capital Group, Inc.:
From continuing operations:
Basic	$	0.83	$	0.46	$	0.87	$	0.95
Diluted		0.80		0.44		0.82		0.87
From net income:
Basic	$	0.83	$	0.46	$	0.86	$	0.90
Diluted		0.80		0.44		0.81		0.82
2012
Gross collections	$	231,028	$	240,560	$	245,977	$	230,490
Revenues		126,410		141,246		145,218		143,903
Total operating expenses		91,394		102,809		103,621		103,872
Income from continuing operations		18,108		18,988		21,308		20,167
Net income		11,406		16,596		21,308		20,167
Earnings per share:
From continuing operations:
Basic	$	0.73	$	0.76	$	0.85	$	0.82
Diluted		0.70		0.74		0.82		0.79
From net income:
Basic	$	0.46	$	0.67	$	0.85	$	0.82
Diluted		0.44		0.64		0.82		0.79

Ownership, Description of Business, and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)	12 Months Ended												1 Months Ended	12 Months Ended	1 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013 Cabot Acquisition [Member]	Dec. 31, 2013 AACC Merger [Member]	Dec. 31, 2013 Propel Acquisition [Member]	Dec. 31, 2013 2017 Convertible Senior Notes [Member]	Dec. 31, 2012 2017 Convertible Senior Notes [Member]	Nov. 27, 2012 2017 Convertible Senior Notes [Member]	Feb. 06, 2014 2017 Convertible Senior Notes [Member] Subsequent Event [Member]	Dec. 31, 2012 2017 Convertible Senior Notes [Member] Before Amendment [Member]	Dec. 16, 2013 2017 Convertible Senior Notes [Member] After Amendment [Member]	Jan. 31, 2013 Maximum [Member]	Dec. 31, 2013 Maximum [Member]	Jan. 31, 2013 Minimum [Member]
Basis Of Presentation And Significant Accounting Policies [Line Items]
Percentage of payment made for portfolios purchase	50.00%
Foreclosure rate														0.50%
Business acquisition, date of acquisition				Jul. 01, 2013	Jun. 13, 2013	May 08, 2012
Deferred Court Costs not recovered, years	3 years
Increase in deferral period													5 years		3 years
Typical lien to value ratio, percentage														15.00%
Rare lien to value ratio, percentage														25.00%
Allowance for financial receivables	$ 0
Employee stock options to purchase common shares, excluded from computation of diluted earnings per share	0	352,000	167,000
Initial conversion price per share							$ 31.56		$ 31.56
Common shares issuable upon conversion of convertible senior notes							115,000,000
Warrants sold to purchase common stock							358,000	3,600,000		3,200,000
Warrants exercise price											44.19	60
Convertible senior notes issuance	$ 287,500,000	$ 115,000,000						$ 115,000,000	$ 115,000,000

Ownership, Description of Business, and Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Detail)	12 Months Ended
	Dec. 31, 2013
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Leasehold improvements	Lesser of lease term, including periods covered by renewal options, or useful life
Minimum [Member] \| Furniture, Fixtures and Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years
Minimum [Member] \| Computer Hardware and Software [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Maximum [Member] \| Furniture, Fixtures and Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Life	10 years
Maximum [Member] \| Computer Hardware and Software [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years

Ownership, Description of Business, and Summary of Significant Accounting Policies - Reconciliation of Shares Used in Calculating Earnings Per Basic and Diluted Shares (Detail) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Earnings Per Share Basic And Diluted [Abstract]
Weighted average common shares outstanding-basic	24,659	24,855	24,572
Dilutive effect of stock-based awards	950	981	1,118
Dilutive effect of convertible senior notes	595
Weighted average common shares outstanding-diluted	26,204	25,836	25,690

Discontinued Operations - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	0 Months Ended	3 Months Ended	12 Months Ended
	May 16, 2012	Jun. 30, 2012	Dec. 31, 2013
Discontinued Operations And Disposal Groups [Abstract]
Additional recognition of loss contingency	$ 4.0
Description of payment of earn-out of EBITDA from discontinued operation	Company will be paid an earn-out equal to 40% of Ascension's EBITDA, for the first five years commencing May 16, 2012.
Recognized loss contingency		4.0
Loss incurred to resolve legacy contractual claims			2.2
Additional loss incurred			$ 0.7

Discontinued Operations - Revenue and Components of Discontinued Operations (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Discontinued Operations And Disposal Groups [Abstract]
Revenue		$ 5,704	$ 18,626
(Loss) income from discontinued operations before income taxes	(2,900)	(11,942)	595
Income tax benefit (expense)	1,160	4,678	(230)
(Loss) income from discontinued operations	(1,740)	(7,264)	365
Loss on sale of discontinued operations, before income taxes		(2,416)
Income tax benefit		586
Loss on sale of discontinued operations		(1,830)
Total (loss) income from discontinued operations	$ (1,740)	$ (9,094)	$ 365

Amount of income (loss) from a disposal group, net of income tax before extraordinary items allocable to noncontrolling interests. Includes, net of tax, income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

+ References+ Details

Business Combinations - Additional Information (Detail)	12 Months Ended				12 Months Ended		12 Months Ended				0 Months Ended	12 Months Ended		0 Months Ended			12 Months Ended	0 Months Ended				0 Months Ended					0 Months Ended		0 Months Ended					0 Months Ended	12 Months Ended
Business Combinations - Additional Information (Detail)	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2013 J.C. Flowers [Member]	Dec. 31, 2013 Preferred Equity Certificate [Member]	Dec. 31, 2013 Janus Holdings [Member] USD ($)	Jul. 02, 2013 Janus Holdings [Member]	Dec. 31, 2013 Janus Holdings [Member] Preferred Equity Certificate [Member] USD ($)	Dec. 31, 2013 Encore Europe Consolidated [Member] USD ($)	Dec. 31, 2013 Encore Europe Consolidated [Member] Preferred Equity Certificate [Member] USD ($)	Dec. 31, 2013 Other Acquisition [Member] USD ($)	May 08, 2012 Propel Acquisition [Member] USD ($)	Dec. 31, 2013 Propel Acquisition [Member]	Dec. 31, 2013 Marlin Acquisition [Member]	Feb. 07, 2014 Marlin Acquisition [Member] Subsequent Event [Member] USD ($)	Feb. 07, 2014 Marlin Acquisition [Member] Subsequent Event [Member] GBP (£)	Jul. 02, 2013 Cabot Credit Management [Member] Janus Holdings [Member]	Dec. 31, 2013 Cabot Acquisition [Member] USD ($)	Jul. 02, 2013 Cabot Acquisition [Member] A Shares [Member]	Jul. 02, 2013 Cabot Acquisition [Member] Janus Holdings [Member] USD ($)	Jul. 02, 2013 Cabot Acquisition [Member] Janus Holdings [Member] GBP (£)	Dec. 31, 2013 Cabot Acquisition [Member] Janus Holdings [Member]	Jul. 02, 2013 Cabot Acquisition [Member] Janus Holdings [Member] E Shares [Member]	Jul. 02, 2013 Cabot Acquisition [Member] Janus Holdings [Member] E Bridge PECs [Member] USD ($)	Jul. 02, 2013 Cabot Acquisition [Member] Janus Holdings [Member] E Bridge PECs [Member] GBP (£)	Jul. 02, 2013 Cabot Acquisition [Member] Janus Holdings [Member] E PECs [Member] USD ($)	Jul. 02, 2013 Cabot Acquisition [Member] Janus Holdings [Member] E PECs [Member] GBP (£)	Jul. 02, 2013 Cabot Holdings [Member] J.C. Flowers [Member] A Shares [Member]	Jul. 02, 2013 Cabot Holdings [Member] Janus Holdings [Member]	Jul. 02, 2013 Cabot Holdings [Member] Janus Holdings [Member] J.C. Flowers [Member] J Shares [Member]	Jul. 02, 2013 Cabot Holdings [Member] Janus Holdings [Member] J.C. Flowers [Member] J Bridge PECs [Member] USD ($)	Jul. 02, 2013 Cabot Holdings [Member] Janus Holdings [Member] J.C. Flowers [Member] J Bridge PECs [Member] GBP (£)	Jul. 02, 2013 Cabot Holdings [Member] Janus Holdings [Member] J.C. Flowers [Member] J PECs [Member] USD ($)	Jul. 02, 2013 Cabot Holdings [Member] Janus Holdings [Member] J.C. Flowers [Member] J PECs [Member] GBP (£)	Jun. 13, 2013 AACC Merger [Member] USD ($)	Dec. 31, 2013 AACC Merger [Member] USD ($)
Business Acquisition [Line Items]
Percentage of equity interest acquired																50.10%					42.90%
Debt instrument purchased, face amount																							$ 15,500,000	£ 10,218,574.0	$ 147,100,000	£ 96,729,661.0				$ 15,500,000	£ 10,177,781.0
Number of shares acquired			100																			3,498,563					100
Number of shares held																		100											3,484,597
Aggregate purchase price														481,000,000	295,000,000				175,000,000	115,100,000
Minority interest percentage						49.90%																						49.90%
Debt instrument purchased, face amount																																146,500,000	96,343,515.0
Debt instrument, interest rate				12.00%
Goodwill	504,213,000	55,446,000			376,296,000					13,500,000	45,400,000						351,908,000																		62,941,000
Acquisition and integration costs																	6,700,000																		9,100,000
Revenue included in condensed consolidated statement of income					95,500,000												95,500,000																		102,100,000
Net income included in condensed consolidated statement of income					2,300,000												9,000,000																		14,600,000
Net loss attributable to noncontrolling interests	1,559,000				392,000			1,559,000
PEC interest (expense) income	15,906,000	10,460,000					(21,616,000)		(11,381,000)
Business acquisition, date of acquisition												May 08, 2012	Feb. 07, 2014
Business acquisition, cash paid											186,800,000						177,246,000																	150,800,000	316,485,000
Business acquisition, common stock issued																																		1,700,000
Business acquisition, common stock issued, price per share																																		$ 37.30
Business acquisition, debt paid off on the closing date of AACC Merger																																			165,700,000
Intangible assets											600,000						7,559,000																		1,470,000
Liabilities, net											$ 2,300,000																								$ 126,059,000

Business Combinations - Components of Purchase Price Allocation for Acquisition/Merger (Detail) (USD $) In Thousands, unless otherwise specified			12 Months Ended	0 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013 Cabot Acquisition [Member]	Jun. 13, 2013 AACC Merger [Member]	Dec. 31, 2013 AACC Merger [Member]
Business Acquisition [Line Items]
Cash paid at acquisition			$ 177,246	$ 150,800	$ 316,485
Stock consideration					62,352
Total net assets acquired			177,246		378,837
Allocation of purchase price:
Cash			57,520		23,156
Investment in receivable portfolios			558,951		383,382
Deferred court costs					6,940
Property and equipment			13,672		11,003
Other assets			20,349		16,004
Preferred equity certificates assumed			(211,549)
Liabilities assumed					(126,059)
Debt assumed			(559,907)
Other liabilities assumed			(45,142)
Redeemable noncontrolling interests			(12,064)
Noncontrolling interests			(4,051)
Identifiable intangible assets			7,559		1,470
Goodwill	504,213	55,446	351,908		62,941
Total net assets acquired			177,246		378,837
Total net assets acquired			$ 177,246		$ 378,837

Business Combinations - Summary of Operating Performance (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Business Acquisition [Line Items]
Total revenues	$ 237,099	$ 235,558	$ 156,121	$ 144,586	$ 143,903	$ 145,218	$ 141,246	$ 126,410	$ 773,364	$ 556,777	$ 448,746
Total operating expenses	(168,466)	(174,429)	(126,238)	(105,872)	(103,872)	(103,621)	(102,809)	(91,394)	(575,005)	(401,696)	(328,566)
Income from operations									198,359	155,081	120,180
Interest expense-non-PEC									(73,269)	(25,564)	(21,116)
PEC interest (expense) income									15,906	10,460
(Loss) income before income taxes									120,868	130,325	98,669
Provision for income taxes									(45,388)	(51,754)	(38,076)
Net (loss) income	22,216	21,064	11,012	19,448					73,740	69,477	60,958
Net loss attributable to noncontrolling interests									1,559
Net (loss) income attributable to Encore	22,953	21,886	11,012	19,448	20,167	21,308	16,596	11,406	75,299	69,477	60,958
Janus Holdings [Member]
Business Acquisition [Line Items]
Total revenues									95,491
Total operating expenses									(48,890)
Income from operations									46,601
Other income									98
(Loss) income before income taxes									(1,182)
Provision for income taxes									(1,574)
Net (loss) income									(2,756)
Net loss attributable to noncontrolling interests									392
Net (loss) income attributable to Encore									(2,364)
Janus Holdings [Member] \| Non Preferred Equity Certificate [Member]
Business Acquisition [Line Items]
Interest expense-non-PEC									(26,265)
Janus Holdings [Member] \| Preferred Equity Certificate [Member]
Business Acquisition [Line Items]
PEC interest (expense) income									(21,616)
Encore Europe [Member]
Business Acquisition [Line Items]
Total revenues
Total operating expenses
Income from operations
Other income
(Loss) income before income taxes									10,235
Provision for income taxes
Net (loss) income									10,235
Net loss attributable to noncontrolling interests									1,167
Net (loss) income attributable to Encore									11,402
Encore Europe [Member] \| Non Preferred Equity Certificate [Member]
Business Acquisition [Line Items]
Interest expense-non-PEC
Encore Europe [Member] \| Preferred Equity Certificate [Member]
Business Acquisition [Line Items]
PEC interest (expense) income									10,235
Encore Europe Consolidated [Member]
Business Acquisition [Line Items]
Total revenues									95,491
Total operating expenses									(48,890)
Income from operations									46,601
Other income									98
(Loss) income before income taxes									9,053
Provision for income taxes									(1,574)
Net (loss) income									7,479
Net loss attributable to noncontrolling interests									1,559
Net (loss) income attributable to Encore									9,038
Encore Europe Consolidated [Member] \| Non Preferred Equity Certificate [Member]
Business Acquisition [Line Items]
Interest expense-non-PEC									(26,265)
Encore Europe Consolidated [Member] \| Preferred Equity Certificate [Member]
Business Acquisition [Line Items]
PEC interest (expense) income									$ (11,381)

Business Combinations - Pro Forma Consolidated Results of Operations (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Business Combinations [Abstract]
Consolidated pro forma revenue	$ 949,337	$ 929,579
Consolidated pro forma income from continuing operations	$ 92,378	$ 101,762

Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Assets
Foreign currency exchange contracts	$ 46
Interest rate cap contracts	202
Liabilities
Interest rate swap agreements		(645)
Foreign currency exchange contracts	(4,123)	(2,010)
Temporary Equity
Redeemable noncontrolling interests	(26,564)
Level 1 [Member]
Assets
Foreign currency exchange contracts
Interest rate cap contracts
Liabilities
Interest rate swap agreements
Foreign currency exchange contracts
Temporary Equity
Redeemable noncontrolling interests
Level 2 [Member]
Assets
Foreign currency exchange contracts	46
Interest rate cap contracts	202
Liabilities
Interest rate swap agreements		(645)
Foreign currency exchange contracts	(4,123)	(2,010)
Temporary Equity
Redeemable noncontrolling interests
Level 3 [Member]
Assets
Foreign currency exchange contracts
Interest rate cap contracts
Liabilities
Interest rate swap agreements
Foreign currency exchange contracts
Temporary Equity
Redeemable noncontrolling interests	$ (26,564)

The aggregate fair value as of the reporting date of all noncontrolling interests which are redeemable by the (parent) entity (1) at a fixed or determinable price on a fixed or determinable date, (2) at the option of the holder of the noncontrolling interest, or (3) upon occurrence of an event that is not solely within the control of the (parent) entity. This item includes noncontrolling interest holder's ownership (or holders' ownership) regardless of the type of equity interest (common, preferred, other) including all potential organizational (legal) forms of the investee entity.

+ References+ Details

Fair Value Measurements - Change in Redeemable Noncontrolling Interests (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Fair Value Disclosures [Abstract]
Balance at beginning of period
Initial redeemable noncontrolling interest related to business combinations	25,517
Net loss attributable to redeemable noncontrolling interests	(1,167)
Adjustment of the redeemable noncontrolling interests to fair value	1,167
Effect of foreign currency translation attributable to redeemable noncontrolling interests	1,047
Balance at end of period	$ 26,564

As of the reporting date, the aggregate carrying amount of all noncontrolling interests which are redeemable by the (parent) entity (1) at a fixed or determinable price on a fixed or determinable date, (2) at the option of the holder of the noncontrolling interest, or (3) upon occurrence of an event that is not solely within the control of the (parent) entity. This item includes noncontrolling interest holder's ownership (or holders' ownership) regardless of the type of equity interest (common, preferred, other) including all potential organizational (legal) forms of the investee entity.

+ References+ Details

Fair Value Measurements - Additional Information (Detail) (USD $)						12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2013 Cabot Acquisition [Member]	Dec. 31, 2013 Cost to collect [Member]	Dec. 31, 2013 Discount rate [Member]	Dec. 31, 2013 United States [Member]	Dec. 31, 2012 United Kingdom [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Increase or decrease of the fair value						$ 19,500,000	$ 18,100,000
Fluctuation in discount rate	1.00%
Estimated market participant cost to collect								50.30%	29.70%
Discount rate								12.00%	18.20%
Carrying value of investment in receivable portfolios	1,590,249,000	873,119,000	716,454,000	644,753,000
Convertible senior notes, carrying value	287,500,000	115,000,000
Convertible senior notes, debt discount	42,240,000	14,442,000
Fair value estimate of convertible senior notes incorporates quoted market prices	412,400,000	128,300,000			680,700,000
Senior secured notes, carrying value	58,750,000	72,500,000			646,900,000
Senior secured notes, debt premium	$ 43,583,000				$ 43,600,000

Derivatives and Hedging Instruments - Additional Information (Detail) In Millions, unless otherwise specified		3 Months Ended	12 Months Ended
	Dec. 31, 2013 Cabot Acquisition [Member] USD ($)	Jun. 30, 2013 Forward Contracts [Member] USD ($)	Dec. 31, 2013 Forward Contracts [Member] USD ($)	Dec. 31, 2012 Forward Contracts [Member] USD ($)	Dec. 31, 2011 Forward Contracts [Member] USD ($)	Dec. 31, 2013 Zero-cost Collar Foreign Exchange Contract [Member]	Jun. 07, 2013 Zero-cost Collar Foreign Exchange Contract [Member] USD ($)	Jun. 07, 2013 Zero-cost Collar Foreign Exchange Contract [Member] EUR (€)
Derivative [Line Items]
Derivative instrument, Notional amount	$ 206.6		$ 48.0				$ 206.0	€ 132.1
Period of forward contracts entered for cash payments of future forecasted transactions in Indian rupees, maximum			36 months
Net derivative loss included in OCI will be reclassified into earnings			2.0
Gains or losses were reclassified from OCI into earnings			0	0	0
Derivative expiry date						Aug. 13, 2013
Foreign exchange contract loss		(3.6)
Decrease in estimated purchase price by offsetting foreign exchange loss		$ 4.3	$ 4.3

Aggregate impact of foreign currency derivatives on earnings for the period. Includes impact of foreign currency cash flow hedge ineffectiveness and the ineffectiveness of fair value hedging derivatives and full change in fair value of the foreign currency derivatives not designated as hedging instruments.

+ References+ Details

Derivatives and Hedging Instruments - Summary of Fair Value of Derivative Instruments as Recorded in Company's Consolidated Statements of Financial Condition (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Other Liabilities [Member] \| Foreign Currency Exchange Contracts [Member]
Derivative [Line Items]
Derivatives designated as hedging instruments	$ (4,123)	$ (2,010)
Other Liabilities [Member] \| Interest Rate Cap [Member]
Derivative [Line Items]
Derivatives designated as hedging instruments		(645)
Other Assets [Member] \| Foreign Currency Exchange Contracts [Member]
Derivative [Line Items]
Derivatives designated as hedging instruments	46
Other Assets [Member] \| Interest Rate Cap [Member]
Derivative [Line Items]
Derivatives not designated as hedging instruments	$ 202

Derivatives and Hedging Instruments - Summary of Effects of Derivatives on Cash Flow Hedging Relationships in Company's Statements of Income (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Interest Rate Swaps [Member]
Derivative [Line Items]
Gain or (Loss) Recognized in OCI - Effective Portion	$ 645	$ 369
Foreign Currency Exchange Contracts 1 [Member]
Derivative [Line Items]
Gain or (Loss) Recognized in OCI - Effective Portion	(3,031)	(1,224)
Foreign Currency Exchange Contracts 2 [Member]
Derivative [Line Items]
Gain or (Loss) Recognized in OCI - Effective Portion	(658)	(25)
Other (expense) income [Member] \| Interest Rate Swaps [Member]
Derivative [Line Items]
Amount of Gain or (Loss) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing
Other (expense) income [Member] \| Foreign Currency Exchange Contracts 1 [Member]
Derivative [Line Items]
Amount of Gain or (Loss) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing
Other (expense) income [Member] \| Foreign Currency Exchange Contracts 2 [Member]
Derivative [Line Items]
Amount of Gain or (Loss) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing
Interest Expense [Member] \| Interest Rate Swaps [Member]
Derivative [Line Items]
Gain or (Loss) Reclassified from OCI into Income - Effective Portion
Salaries and Employee Benefits [Member] \| Foreign Currency Exchange Contracts 1 [Member]
Derivative [Line Items]
Gain or (Loss) Reclassified from OCI into Income - Effective Portion	(1,362)	(1,230)
General and Administrative Expenses [Member] \| Foreign Currency Exchange Contracts 2 [Member]
Derivative [Line Items]
Gain or (Loss) Reclassified from OCI into Income - Effective Portion	$ (260)	$ (212)

Investment in Receivable Portfolios, Net - Additional Information (Detail) (USD $)	12 Months Ended				1 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013 Investment Receivables AACC [Member]	Jul. 31, 2013 Cabot Acquisition [Member]	Dec. 31, 2013 Cabot Acquisition [Member]	Dec. 31, 2013 Minimum [Member]	Dec. 31, 2013 Maximum [Member]	Dec. 31, 2013 Maximum [Member] Cabot Holdings [Member]
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net [Line Items]
Collection forecast estimated on receivable portfolios							84 months	96 months	120 months
Investment in receivable portfolios collection forecast estimate	$ 129,800,000
Income recognized under cost recovery method	0
Face value of receivable portfolios	84,900,000,000	11,400,000,000
Purchase price of receivable portfolios	1,204,779,000	562,335,000	386,850,000	383,400,000	559,000,000	559,000,000
Purchase cost as a percentage of face value	1.40%	4.20%
Estimated future collections at acquisition for receivable portfolios	1,300,000,000	842,800,000
Zero Basis Revenue	$ 17,200,000	$ 22,600,000	$ 20,600,000

Investment in Receivable Portfolios, Net - Summary of Accretable Yield and an Estimate of Zero Basis Future Cash Flows (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net [Line Items]
Beginning Balance	$ 1,002,310	$ 854,203
Revenue recognized, net	(744,852)	(545,412)
Net additions on existing portfolios	375,407	240,173
Additions for current purchases	1,767,071	453,346
Ending Balance	2,399,936	1,002,310
Accretable Yield [Member]
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net [Line Items]
Beginning Balance	984,944	821,527
Revenue recognized, net	(717,733)	(519,136)
Net additions on existing portfolios	357,189	229,207
Additions for current purchases	1,767,071	453,346
Ending Balance	2,391,471	984,944
Estimate of Zero Basis Cash Flows [Member]
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net [Line Items]
Beginning Balance	17,366	32,676
Revenue recognized, net	(27,119)	(26,276)
Net additions on existing portfolios	18,218	10,966
Additions for current purchases
Ending Balance	$ 8,465	$ 17,366

Investment in Receivable Portfolios, Net - Summary of Changes in Balance of Investment in Receivable Portfolios (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net [Line Items]
Balance, beginning of period				$ 873,119				$ 716,454	$ 873,119	$ 716,454	$ 644,753
Purchases of receivable portfolios									1,204,779	562,335	386,850
Transfer of portfolios
Gross collections	(351,278)	(379,670)	(278,388)	(270,170)	(230,490)	(245,977)	(240,560)	(231,028)	(1,279,506)	(948,006)	(761,011)
Put-backs and recalls									(2,629)	(3,076)	(2,852)
Foreign currency adjustments									49,634
Revenue recognized									732,659	541,191	459,537
Portfolio allowance reversals, net									12,193	4,221	(10,823)
Balance, end of period	1,590,249				873,119				1,590,249	873,119	716,454
Revenue as a percentage of collections									57.30%	57.10%	60.40%
Accrual Basis Portfolios [Member]
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net [Line Items]
Balance, beginning of period				873,119				716,454	873,119	716,454	644,753
Purchases of receivable portfolios									1,203,706	562,335	386,850
Transfer of portfolios									(6,649)
Gross collections									(1,249,625)	(921,730)	(740,402)
Put-backs and recalls									(2,331)	(3,076)	(2,843)
Foreign currency adjustments									49,634
Revenue recognized									715,458	518,617	443,367
Portfolio allowance reversals, net									2,275	519	(15,271)
Balance, end of period	1,585,587				873,119				1,585,587	873,119	716,454
Revenue as a percentage of collections									57.30%	56.30%	59.90%
Cost Recovery Portfolios [Member]
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net [Line Items]
Balance, beginning of period
Purchases of receivable portfolios									1,073
Transfer of portfolios									6,649
Gross collections									(2,764)
Put-backs and recalls									(296)
Foreign currency adjustments
Revenue recognized
Portfolio allowance reversals, net
Balance, end of period	4,662								4,662
Revenue as a percentage of collections									0.00%	0.00%	0.00%
Zero Basis Portfolios [Member]
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net [Line Items]
Balance, beginning of period
Purchases of receivable portfolios
Transfer of portfolios
Gross collections									(27,117)	(26,276)	(20,609)
Put-backs and recalls									(2)		(9)
Foreign currency adjustments
Revenue recognized									17,201	22,574	16,170
Portfolio allowance reversals, net									9,918	3,702	4,448
Balance, end of period
Revenue as a percentage of collections									63.40%	85.90%	78.50%

Investment in Receivable Portfolios, Net - Summary of Change in Valuation Allowance for Investment in Receivable Portfolios (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities [Abstract]
Balance at beginning of period	$ 105,273	$ 109,494	$ 98,671
Provision for portfolio allowances	479	6,745	17,707
Reversal of prior allowances	(12,672)	(10,966)	(6,884)
Balance at end of period	$ 93,080	$ 105,273	$ 109,494

Deferred Court Costs, Net - Schedule of Deferred Court Costs (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]
Court costs advanced	$ 399,274	$ 279,314
Court costs recovered	(147,166)	(94,827)
Court costs reserve	(210,889)	(149,080)	(130,454)	(113,239)
Deferred court costs, net	$ 41,219	$ 35,407

Property and Equipment, Net - Property and Equipment (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 115,540	$ 53,519
Less: accumulated depreciation and amortization	(59,757)	(30,296)
Property and equipment, net	55,783	23,223
Furniture, Fixtures and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	15,955	7,605
Computer Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	79,765	33,189
Telecommunications Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,589	6,033
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	15,145	6,692
Other [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,086

Other Assets - Components of Other Assets (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]
Service fee receivables	$ 29,931
Debt issuance costs, net of amortization	28,066	14,397
Identifiable intangible assets, net	23,549	487
Prepaid expenses	23,487	6,399
Deferred tax assets	13,974
Other financial receivables	7,962
Interest receivable	7,956	4,042
Prepaid income taxes	5,009
Recoverable legal fees	3,049	1,521
Security deposits	2,500	1,696
Other	9,300	2,993
Total other assets	$ 154,783	$ 31,535

Debt - Components of Debt (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Debt Instrument [Line Items]
Encore revolving credit facility	$ 356,000	$ 258,000
Encore term loan facility	140,625	148,125
Encore senior secured notes	58,750	72,500
Encore convertible notes	287,500	115,000
Less: Debt discount	(42,240)	(14,442)
Add: Debt premium	43,583
Preferred equity certificates	199,821
Capital lease obligations	12,219	9,252
Debt and capital lease obligations, total	1,850,431	706,036
Other [Member]
Debt Instrument [Line Items]
Encore senior secured notes	20,271
Propel Facility [Member]
Debt Instrument [Line Items]
Encore revolving credit facility	152,292	117,601
Propel Wells Fargo Facility [Member]
Debt Instrument [Line Items]
Encore revolving credit facility	18,338
Cabot Senior Secured Notes [Member]
Debt Instrument [Line Items]
Encore senior secured notes	$ 603,272

Debt - Additional Information (Detail) (USD $)	12 Months Ended		12 Months Ended							0 Months Ended	12 Months Ended			12 Months Ended	0 Months Ended	12 Months Ended		0 Months Ended	12 Months Ended
Debt - Additional Information (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013 Restated Credit Agreement [Member]	Dec. 31, 2013 Revolving Credit Facility [Member]	Dec. 31, 2013 Revolving Credit Facility [Member] Minimum [Member] LIBOR [Member]	Dec. 31, 2013 Revolving Credit Facility [Member] Minimum [Member] Base Rate [Member]	Dec. 31, 2013 Revolving Credit Facility [Member] Maximum [Member] LIBOR [Member]	Dec. 31, 2013 Revolving Credit Facility [Member] Maximum [Member] Base Rate [Member]	Feb. 25, 2014 Subsequent Event [Member]	Feb. 25, 2014 Subsequent Event [Member] Restated Credit Agreement [Member]	Dec. 31, 2013 Subsequent Event [Member] Restated Credit Agreement [Member]	Feb. 25, 2014 Subsequent Event [Member] Revolving Credit Facility [Member]	Feb. 25, 2014 Term Loan [Member] Subsequent Event [Member]	Dec. 31, 2013 Term Loan Subtranche One [Member]	Feb. 25, 2014 Term Loan Subtranche One [Member] Subsequent Event [Member]	Dec. 31, 2013 Term Loan Subtranche One [Member] Subsequent Event [Member]	Dec. 31, 2013 Term loan Subtranche Two [Member]	Feb. 25, 2014 Term loan Subtranche Two [Member] Subsequent Event [Member]	Dec. 31, 2013 Term loan Subtranche Two [Member] Subsequent Event [Member]
Debt Instrument [Line Items]
Revolving credit facility												$ 692,600,000
Term loan facility	140,625,000	148,125,000											153,800,000		60,000,000			6,300,000
Additional line of revolving credit facility												250,000,000
Maximum borrowing capacity including accordion agreement after amendment										1,100,000,000
Debt instrument, term										5 years
Line of credit facility expiry date			Feb. 28, 2019							Feb. 28, 2019	Feb. 28, 2019			Feb. 28, 2017	Feb. 25, 2017	Feb. 28, 2017	Nov. 03, 2017	Nov. 03, 2017	Nov. 03, 2017
Subordinated debt basket									450,000,000
Investments in unrestricted subsidiaries									$ 200,000,000
Revolving credit facility, description of loan				A revolving loan of $692.6 million, interest at a floating rate equal to, at the Company's option, either: (1) reserve adjusted London Interbank Offered Rate ("LIBOR"), plus a spread that ranges from, depending on the Company's cash flow leverage ratio, 250 to 300 basis points; or (2) Alternate Base Rate, plus a spread that ranges from, depending on the Company's cash flow leverage ratio, 150 to 200 basis points. "Alternate Base Rate," as defined in the agreement, means the highest of (i)the per annum rate which the administrative agent publicly announces from time to time as its prime lending rate, as in effect from time to time, (ii)the federal funds effective rate from time to time, plus 0.5% per annum and (iii) reserved adjusted LIBOR determined on a daily basis for a one month interest paid, plus 1.0% per annum;											A $60.0 million term loan maturing on February 25, 2017, interest at a floating rate equal to, at the Company’s option, either: (1) reserve adjusted LIBOR, plus a spread that ranges from 200 to 250 basis points, depending on the Company’s cash flow leverage ratio; or (2) Alternate Base Rate, plus a spread that ranges from 100 to 150 basis points, depending on the Company’s cash flow leverage ratio. Principal amortizes $3.0 million in 2014, $3.0 million in 2015, and $4.5 million in 2016 with the remaining principal due at the end of the term;			A $6.3 million term loan maturing on November 3, 2017, interest at a floating rate equal to, at the Company’s option, either: (1) reserve adjusted LIBOR, plus a spread that ranges from 250 to 300 basis points, depending on the Company’s cash flow leverage ratio; or (2) Alternate Base Rate, plus a spread that ranges from 150 to 200 basis points, depending on the Company’s cash flow leverage ratio. Principal amortizes $0.4 million in 2014, $0.5 million in 2015, $0.6 million in 2016 and $0.5 million in 2017 with the remaining principal due at the end of the term;
Basis spread on variable rate					2.50%	1.50%	3.00%	2.00%
Percentage to be added to base rate for alternate base rate	0.50%
Percentage to be added to adjusted base rate for alternate base rate	1.00%

Debt - Additional Information 1 (Detail) (USD $)			12 Months Ended		0 Months Ended		12 Months Ended	0 Months Ended	12 Months Ended	0 Months Ended
Debt - Additional Information 1 (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013 Term Loan Subtranche One [Member]	Dec. 31, 2013 Term loan Subtranche Two [Member]	Feb. 25, 2014 Subsequent Event [Member] Term Loan One [Member]	Feb. 25, 2014 Subsequent Event [Member] Term Loan Subtranche One [Member]	Dec. 31, 2013 Subsequent Event [Member] Term Loan Subtranche One [Member]	Feb. 25, 2014 Subsequent Event [Member] Term loan Subtranche Two [Member]	Dec. 31, 2013 Subsequent Event [Member] Term loan Subtranche Two [Member]	Feb. 25, 2014 Subsequent Event [Member] Minimum [Member] Term Loan One [Member] LIBOR [Member]	Feb. 25, 2014 Subsequent Event [Member] Minimum [Member] Term Loan One [Member] Base Rate [Member]	Feb. 25, 2014 Subsequent Event [Member] Minimum [Member] Term Loan Subtranche One [Member] LIBOR [Member]	Feb. 25, 2014 Subsequent Event [Member] Minimum [Member] Term Loan Subtranche One [Member] Base Rate [Member]	Feb. 25, 2014 Subsequent Event [Member] Minimum [Member] Term loan Subtranche Two [Member] LIBOR [Member]	Feb. 25, 2014 Subsequent Event [Member] Minimum [Member] Term loan Subtranche Two [Member] Base Rate [Member]	Feb. 25, 2014 Subsequent Event [Member] Maximum [Member] Term Loan One [Member] LIBOR [Member]	Feb. 25, 2014 Subsequent Event [Member] Maximum [Member] Term Loan One [Member] Base Rate [Member]	Feb. 25, 2014 Subsequent Event [Member] Maximum [Member] Term Loan Subtranche One [Member] LIBOR [Member]	Feb. 25, 2014 Subsequent Event [Member] Maximum [Member] Term Loan Subtranche One [Member] Base Rate [Member]	Feb. 25, 2014 Subsequent Event [Member] Maximum [Member] Term loan Subtranche Two [Member] LIBOR [Member]	Feb. 25, 2014 Subsequent Event [Member] Maximum [Member] Term loan Subtranche Two [Member] Base Rate [Member]
Debt Instrument [Line Items]
Credit facility, description of loan					An $87.5 million five-year term loan, interest at a floating rate equal to, at the Company’s option, either: (1) reserve adjusted LIBOR, plus a spread that ranges from 250 to 300 basis points, depending on the Company’s cash flow leverage ratio; or (2) Alternate Base Rate, plus a spread that ranges from 150 to 200 basis points, depending on the Company’s cash flow leverage ratio. Principal amortizes $4.4 million in 2014, $4.4 million in 2015, $6.6 million in 2016, $8.8 million in 2017, and $8.8 million in 2018 with the remaining principal due at the end of the term;	A $60.0 million term loan maturing on February 25, 2017, interest at a floating rate equal to, at the Company’s option, either: (1) reserve adjusted LIBOR, plus a spread that ranges from 200 to 250 basis points, depending on the Company’s cash flow leverage ratio; or (2) Alternate Base Rate, plus a spread that ranges from 100 to 150 basis points, depending on the Company’s cash flow leverage ratio. Principal amortizes $3.0 million in 2014, $3.0 million in 2015, and $4.5 million in 2016 with the remaining principal due at the end of the term;		A $6.3 million term loan maturing on November 3, 2017, interest at a floating rate equal to, at the Company’s option, either: (1) reserve adjusted LIBOR, plus a spread that ranges from 250 to 300 basis points, depending on the Company’s cash flow leverage ratio; or (2) Alternate Base Rate, plus a spread that ranges from 150 to 200 basis points, depending on the Company’s cash flow leverage ratio. Principal amortizes $0.4 million in 2014, $0.5 million in 2015, $0.6 million in 2016 and $0.5 million in 2017 with the remaining principal due at the end of the term;
Debt instrument, term					5 years
Term loan facility	$ 140,625,000	$ 148,125,000			$ 87,500,000	$ 60,000,000		$ 6,300,000
Basis spread on variable rate										2.50%	1.50%	2.00%	1.00%	2.50%	1.50%	3.00%	2.00%	2.50%	1.50%	3.00%	2.00%
Principal amount amortized, 2014					4,400,000	3,000,000		400,000
Principal amount amortized, 2015					4,400,000	3,000,000		500,000
Principal amount amortized, 2016					6,600,000	4,500,000		600,000
Principal amount amortized, 2017					8,800,000			500,000
Principal amount amortized, 2018					$ 8,800,000
Line of credit facility expiry date			Feb. 28, 2017	Nov. 03, 2017		Feb. 25, 2017	Feb. 28, 2017	Nov. 03, 2017	Nov. 03, 2017

Debt - Additional Information 2 (Detail) (USD $) In Millions, unless otherwise specified			0 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Feb. 25, 2014 Subsequent Event [Member]
Debt Instrument [Line Items]
Eligible estimated remaining collections for consumer receivables			55.00%
Total estimated remaining collections			35.00%
Borrowing base as percentage of eligible estimated collection range start			30.00%
Borrowing base as percentage of eligible estimated collection range end			35.00%
Percentage of eligible estimated remaining collections			33.00%
Percentage of multiplying factor			95.00%
Borrowing base description			A borrowing base equal to (1) the lesser of (i) (a) 55% of eligible estimated remaining collections for consumer receivables subject to bankruptcy proceedings, provided that the amount described in this clause (i)(a) may not exceed 35% of the amount described in clauses (i)(a) and (i)(b), plus (b) 30%—35% (depending on the Company’s trailing 12-month cost per dollar collected) of all other eligible estimated remaining collections, initially set at 33%, and (ii) the product of the net book value of all receivable portfolios acquired on or after January 1, 2005 multiplied by 95%, minus (2) (x) the aggregate principal amount outstanding of the Senior Secured Notes (as defined below) plus (y) the aggregate principal amount outstanding under the term loans;
Allowance of additional unsecured indebtedness			$ 450.0
Company's repurchases, common stock			50.0
Percentage of acquisitions excluded			50.00%
Acquisition limit per acquisition			75.0
Acquisition limit			225.0
Amount outstanding	$ 496.6
Revolving credit facility, interest rate	3.11%	4.06%

Debt - Additional Information 3 (Detail)	12 Months Ended						12 Months Ended		12 Months Ended		0 Months Ended				12 Months Ended				0 Months Ended		12 Months Ended							12 Months Ended					12 Months Ended
Debt - Additional Information 3 (Detail)	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2013 Propel Facility [Member] USD ($)	Dec. 27, 2013 Propel Facility [Member] USD ($)	Dec. 31, 2012 Propel Facility [Member]	Dec. 31, 2013 Propel Wells Fargo Facility [Member] USD ($)	May 09, 2013 Propel Wells Fargo Facility [Member] USD ($)	Dec. 31, 2013 Cabot Corporation [Member] USD ($)	Dec. 31, 2013 Cabot Corporation [Member] GBP (£)	Sep. 20, 2012 Cabot 2019 Notes [Member] USD ($)	Sep. 20, 2012 Cabot 2019 Notes [Member] GBP (£)	Aug. 02, 2013 Cabot 2020 Notes [Member] USD ($)	Aug. 02, 2013 Cabot 2020 Notes [Member] GBP (£)	Dec. 31, 2013 J Bridge PECs [Member] USD ($)	Dec. 31, 2013 J Bridge PECs [Member] GBP (£)	Dec. 31, 2013 2011 Senior Secured Notes [Member] USD ($)	Dec. 31, 2013 2010 Senior Secured Notes [Member] USD ($)	Feb. 07, 2014 Subsequent Event [Member] Marlin Acquisition [Member] USD ($)	Feb. 07, 2014 Subsequent Event [Member] Marlin Acquisition [Member] GBP (£)	Dec. 31, 2013 LIBOR [Member] Propel Facility [Member] Minimum [Member]	Dec. 31, 2013 LIBOR [Member] Propel Facility [Member] Maximum [Member]	Dec. 31, 2013 LIBOR [Member] Propel Wells Fargo Facility [Member]	Dec. 31, 2013 Prime Rate [Member] Propel Facility [Member] Minimum [Member]	Dec. 31, 2013 Prime Rate [Member] Propel Facility [Member] Maximum [Member]	Sep. 20, 2012 Cabot Credit Agreement [Member] USD ($)	Sep. 20, 2012 Cabot Credit Agreement [Member] GBP (£)	Dec. 31, 2013 Cabot Credit Facility [Member] USD ($)	Jun. 28, 2013 Cabot Credit Facility [Member] GBP (£)	Jun. 28, 2012 Cabot Credit Facility [Member] USD ($)	Feb. 07, 2014 Cabot Credit Facility [Member] Subsequent Event [Member] Marlin Acquisition [Member] USD ($)	Feb. 07, 2014 Cabot Credit Facility [Member] Subsequent Event [Member] Marlin Acquisition [Member] GBP (£)	Dec. 31, 2013 Cabot Credit Facility [Member] LIBOR [Member]
Debt Instrument [Line Items]
Senior Secured Notes	$ 58,750,000	$ 72,500,000									$ 438,400,000	£ 265,000,000	$ 151,700,000	£ 100,000,000
Senior Secured Notes, aggregate amount	75,000,000																25,000,000	50,000,000
Debt instrument, interest rate											10.375%	10.375%	8.375%				7.375%	7.75%
Senior Secured Notes, periodic principal repayment																	1,250,000	2,500,000
Frequency of repayment, Senior Secured Notes																	Quarterly
Debt instrument maturity date											2019	2019					2018	2017
Revolving credit facility, maximum borrowing capacity				160,000,000	200,000,000			100,000,000																		82,700,000	50,000,000		85,000,000	140,600,000
Debt instrument, maturity date				2015-05			2017-05
Basis spread on variable rate																					3.00%	3.75%	3.25%	0.00%	0.75%								4.00%
Borrowing base of the face value of the tax lien collateralized notes				90.00%
Credit facility, accordion feature				40,000,000
Credit facility, outstanding amount				152,300,000																								0			122,300,000	75,000,000
Weighted average interest rate	3.11%	4.06%		3.19%		3.37%	3.64%
Additional draws	0
Debt instrument, term							4 years																					5 years
Amount outstanding	496,600,000						18,300,000
Debt instrument interest payment date											Interest on the Cabot 2019 Notes is payable semi-annually, in arrears, on April 1 and October 1 of each year	Interest on the Cabot 2019 Notes is payable semi-annually, in arrears, on April 1 and October 1 of each year	Interest on the Cabot 2020 Notes is payable semi-annually, in arrears, on February 1 and August 1 of each year, beginning on February 1, 2014
Debt issuance cost													4,900,000
Repayment of senior credit facility	630,163,000	289,673,000	143,000,000						113,800,000	75,000,000
Repayment of J Bridge PECs	39,743,000														37,900,000	25,000,000
Line of credit facility expiry date																												Sep. 01, 2017
LTV ratio																												0.75%
Aggregate purchase price																			$ 481,000,000	£ 295,000,000

Debt - Additional Information 4 (Detail) (USD $)	1 Months Ended	12 Months Ended			1 Months Ended	12 Months Ended			0 Months Ended	12 Months Ended						0 Months Ended	12 Months Ended
Debt - Additional Information 4 (Detail) (USD $)	Aug. 30, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013 After Amendment [Member]	Feb. 06, 2014 Subsequent Event [Member]	Dec. 31, 2013 Warrants [Member]	Jul. 02, 2013 Cabot Acquisition [Member]	Jul. 02, 2013 Janus Holdings [Member]	Nov. 27, 2012 2017 Convertible Senior Notes [Member]	Dec. 31, 2013 2017 Convertible Senior Notes [Member]	Dec. 31, 2012 2017 Convertible Senior Notes [Member]	Dec. 06, 2012 2017 Convertible Senior Notes [Member]	Dec. 31, 2012 2017 Convertible Senior Notes [Member] Before Amendment [Member]	Dec. 16, 2013 2017 Convertible Senior Notes [Member] After Amendment [Member]	Feb. 06, 2014 2017 Convertible Senior Notes [Member] Subsequent Event [Member]	Jun. 24, 2013 2020 Convertible Senior Notes [Member]	Dec. 31, 2013 2020 Convertible Senior Notes [Member]	Jul. 18, 2013 2020 Convertible Senior Notes [Member]	Dec. 31, 2013 Preferred Equity Certificate [Member]	Dec. 31, 2013 Computer Hardware and Software [Member]
Debt Instrument [Line Items]
Debt instrument description of discount rate		The discount rate used to determine the present value is 50 basis points over the then current Treasury Rate corresponding to the remaining average life
Basis spread over the current Treasury Rate		0.50%
Convertible senior notes sold									$ 100,000,000			$ 15,000,000				$ 150,000,000		$ 22,500,000
Debt instrument, interest rate									3.00%							3.00%			12.00%
Convertible senior notes, Maturity date									Nov. 27, 2017							Jul. 01, 2020
Convertible senior notes outstanding		287,500,000	115,000,000						115,000,000		115,000,000							172,500,000
Debt instrument interest payment date										Interest on the 2017 Convertible Notes is payable semi-annually, in arrears, on May 27 and November 27 of each year							Interest on the 2020 Convertible Notes is payable semi-annually, in arrears, on January 1 and July 1 of each year
Initial conversion rate									31.6832							21.8718
Convertible senior notes, principal amount									1,000							1,000
Initial conversion price per share									$ 31.56	$ 31.56						$ 45.72
Fair value of notes										100,300,000							140,200,000
Residual value		46,954,000	14,702,000							14,700,000							32,300,000
Debt issuance cost										3,300,000							4,900,000
Initial debt issuance costs										3,800,000							6,000,000
Equity issuance cost										500,000							1,100,000
Dilutive effect of convertible senior notes		595,000								600,000
Average price of common stock										$ 31.56
Effective conversion price of Notes per share										$ 44.19
Average share price of common stock										$ 44.19
Warrants strike price													44.19	60
Number of warrants modified										358,000	3,600,000				3,200,000
Amount paid to modify warrants, per warrant						$ 7.66
Amount paid to modify warrants				27,900,000
Warrant restrike costs		2,700,000			25,200,000
Capped Call Transactions cost																	18,100,000
Cap price of capped call transactions per share																	$ 61.5475
Proceeds from sale of Notes		172,500,000	115,000,000														167,400,000
Net proceeds used for payment of convertible note hedge transaction cost																	18,100,000
Effective interest rate on the liability component										6.00%							6.35%
Percentage of equity interest acquired							50.10%
Minority interest percentage								49.90%
Repayment of J Bridge PECs	41,200,000
Preferred equity certificates		199,821,000
Capital lease obligations		$ 12,219,000	$ 9,252,000																	$ 13,000,000
Capital lease obligations, minimum percentage		0.00%
Capital lease obligations, maximum percentage		13.30%

Debt - Balances of Liability and Equity Components (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Debt Disclosure [Abstract]
Liability component-principal amount	$ 287,500	$ 115,000
Unamortized debt discount	(42,240)	(14,442)
Liability component-net carrying amount	245,260	100,558
Equity component	$ 46,954	$ 14,702

Debt - Interest Expense (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Convertible Notes [Member]
Debt Instrument [Line Items]
Interest expense-stated coupon rate	$ 6,108	$ 307
Interest expense - amortization/appreciation of debt discount/premium	4,492	260
Total interest expense-Cabot Notes	10,600	567
Cabot Senior Secured Notes [Member]
Debt Instrument [Line Items]
Interest expense-stated coupon rate	27,496
Interest expense - amortization/appreciation of debt discount/premium	(2,826)
Total interest expense-Cabot Notes	$ 24,670

Debt - Summary of Debt and Capital Lease Obligations Maturities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Equity Method Investments And Cost Method Investments [Abstract]
2014	$ 40,989
2015	226,906
2016	28,459
2017	573,622
2018	2,655
Thereafter	976,458
Total	$ 1,849,089

Debt - Summary of Debt and Capital Lease Obligations Maturities (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified			12 Months Ended	0 Months Ended	12 Months Ended		0 Months Ended	12 Months Ended		0 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013 Term Loan Subtranche One [Member]	Feb. 25, 2014 Term Loan Subtranche One [Member] Subsequent Event [Member]	Dec. 31, 2013 Term Loan Subtranche One [Member] Subsequent Event [Member]	Dec. 31, 2013 Term loan Subtranche Two [Member]	Feb. 25, 2014 Term loan Subtranche Two [Member] Subsequent Event [Member]	Dec. 31, 2013 Term loan Subtranche Two [Member] Subsequent Event [Member]	Dec. 31, 2013 Restated Credit Agreement [Member]	Feb. 25, 2014 Restated Credit Agreement [Member] Subsequent Event [Member]	Dec. 31, 2013 Restated Credit Agreement [Member] Subsequent Event [Member]
Debt Instrument [Line Items]
Debt instrument, term										5 years
Line of credit facility expiry date			Feb. 28, 2017	Feb. 25, 2017	Feb. 28, 2017	Nov. 03, 2017	Nov. 03, 2017	Nov. 03, 2017	Feb. 28, 2019	Feb. 28, 2019	Feb. 28, 2019
Term loan facility	$ 140,625	$ 148,125		$ 60,000			$ 6,300

Variable Interest Entity - Assets and Liabilities of Variable Interest Entity (Detail) (USD $)
In Thousands, unless otherwise specified

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Assets

$ 126,213

$ 17,510

$ 8,047

$ 10,905

1,590,249

873,119

716,454

644,753

55,783

23,223

154,783

31,535

504,213

55,446

2,685,274

^[1]

1,171,340

^[1]

Liabilities

137,272

43,909

1,850,431

706,036

87,936

7,343

2,082,803

^[1]

765,524

^[1]

Janus Holdings [Member]

Assets

62,403

620,312

13,755

33,772

376,296

1,106,538

Liabilities

47,219

846,676

1,897