0001084961-21-000017 | 10-K | XBRL Viewer

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Cover Page - USD ($) $ in Millions	12 Months Ended
Cover Page - USD ($) $ in Millions	Dec. 31, 2020	Feb. 17, 2021	Jun. 30, 2020
Cover [Abstract]
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Entity Central Index Key	0001084961
Current Fiscal Year End Date	--12-31
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2020
Document Transition Report	false
Entity File Number	000-26489
Entity Registrant Name	ENCORE CAPITAL GROUP, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	48-1090909
Entity Address, Address Line One	350 Camino De La Reina
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92108
City Area Code	877
Local Phone Number	445-4581
Title of 12(b) Security	Common Stock, $0.01 Par Value Per Share
Trading Symbol	ECPG
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 1,058.5
Entity Common Stock, Shares Outstanding		31,345,569
Documents Incorporated by Reference	Portions of the registrant’s definitive proxy statement in connection with its annual meeting of stockholders to be held in 2021 are incorporated by reference in Items 10, 11, 12, 13, and 14 of Part III of this Annual Report on Form 10-K for the fiscal year ended December 31, 2020, which proxy statement will be filed no later than 120 days after the close of the registrant’s fiscal year December 31, 2020.
ICFR Auditor Attestation Flag	true

Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Assets
Cash and cash equivalents	$ 189,184	$ 192,335
Investment in receivable portfolios, net	3,291,918	3,283,984
Deferred court costs, net	0	100,172
Property and equipment, net	127,297	120,051
Other assets	349,162	329,223
Goodwill	906,962	884,185
Total assets	4,864,523	4,909,950
Liabilities:
Accounts payable and accrued liabilities	215,920	223,911
Borrowings	3,281,634	3,513,197
Other liabilities	146,893	147,436
Total liabilities	3,644,447	3,884,544
Commitments and contingencies (Note 12)
Equity:
Convertible preferred stock, $0.01 par value, 5,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $0.01 par value, 75,000 shares authorized, 31,345 shares and 31,097 shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively	313	311
Additional paid-in capital	230,440	222,590
Accumulated earnings	1,055,668	888,058
Accumulated other comprehensive loss	(68,813)	(88,766)
Total Encore Capital Group, Inc. stockholders’ equity	1,217,608	1,022,193
Noncontrolling interest	2,468	3,213
Total equity	1,220,076	1,025,406
Total liabilities and equity	4,864,523	4,909,950
Variable Interest Entity
Assets
Cash and cash equivalents	2,223	34
Investment in receivable portfolios, net	553,621	539,596
Other assets	5,127	4,759
Liabilities:
Borrowings	478,131	464,092
Other liabilities	$ 37	$ 0

Consolidated Statements of Financial Condition (Parenthetical) - $ / shares	Dec. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Convertible preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Convertible preferred stock, shares authorized	5,000,000	5,000,000
Convertible preferred stock, shares issued	0	0
Convertible preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	31,345,000	31,097,000
Common stock, shares outstanding	31,345,000	31,097,000

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenues
Revenue from receivable portfolios	$ 1,374,717	$ 1,269,288	$ 1,167,132
Changes in expected current and future recoveries	7,246	0	0
Servicing revenue	115,118	126,527	148,044
Other revenues	4,319	9,974	5,381
Total revenues	1,501,400	1,405,789	1,320,557
(Allowances) allowance reversals on receivable portfolios, net	0	(8,108)	41,473
Total revenues, adjusted by net allowances	1,501,400	1,397,681	1,362,030
Operating expenses
Salaries and employee benefits	378,176	376,365	369,064
Cost of legal collections	239,071	202,670	205,204
General and administrative expenses	149,113	148,256	158,352
Other operating expenses	108,944	108,433	134,934
Collection agency commissions	49,754	63,865	47,948
Depreciation and amortization	42,780	41,029	41,228
Goodwill impairment	0	10,718	0
Total operating expenses	967,838	951,336	956,730
Income from operations	533,562	446,345	405,300
Other expense
Interest expense	(209,356)	(217,771)	(237,355)
Loss on extinguishment of debt	(40,951)	(8,989)	(2,693)
Other expense	(357)	(18,343)	(8,764)
Total other expense	(250,664)	(245,103)	(248,812)
Income before income taxes	282,898	201,242	156,488
Provision for income taxes	(70,374)	(32,333)	(46,752)
Net income	212,524	168,909	109,736
Net (income) loss attributable to noncontrolling interest	(676)	(1,040)	6,150
Net income attributable to Encore Capital Group, Inc. stockholders	$ 211,848	$ 167,869	$ 115,886
Earnings per share attributable to Encore Capital Group, Inc.:
Basic (USD per share)	$ 6.74	$ 5.38	$ 4.09
Diluted (USD per share)	$ 6.68	$ 5.33	$ 4.06
Weighted average shares outstanding:
Basic (shares)	31,427	31,210	28,313
Diluted (shares)	31,710	31,474	28,572

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 212,524	$ 168,909	$ 109,736
Change in unrealized gain (loss) on derivative instruments:
Unrealized gain (loss) on derivative instruments	234	(5,029)	(7,658)
Income tax effect	(66)	761	1,743
Unrealized gain (loss) on derivative instruments, net of tax	168	(4,268)	(5,915)
Change in foreign currency translation:
Unrealized gain (loss) on foreign currency translation	17,160	23,169	(36,927)
Removal of other comprehensive loss in connection with divestiture	2,632	3,814	3,663
Unrealized gain (loss) on foreign currency translation, net of divestiture	19,792	26,983	(33,264)
Other comprehensive income (loss), net of tax	19,960	22,715	(39,179)
Comprehensive income	232,484	191,624	70,557
Comprehensive (income) loss attributable to noncontrolling interest:
Net (income) loss attributable to noncontrolling interest	(676)	(1,040)	6,150
Unrealized (income) loss on foreign currency translation	(7)	(494)	5,548
Comprehensive (income) loss attributable to noncontrolling interest	683	1,534	(11,698)
Comprehensive income attributable to Encore Capital Group, Inc. stockholders	$ 231,801	$ 190,090	$ 82,255

Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands	Total	Adjustment	Common Stock	Additional Paid-In Capital	Accumulated Earnings	Accumulated Earnings Adjustment	Accumulated Other Comprehensive (Loss) Income	Noncontrolling Interest
Balance at beginning of period (in shares) at Dec. 31, 2017			25,801
Balance at beginning of period at Dec. 31, 2017	$ 571,933		$ 258	$ 42,646	$ 616,314		$ (77,356)	$ (9,929)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	109,736
Other comprehensive (loss) income, net of tax	(36,374)						(37,294)	920
Change in fair value of redeemable noncontrolling interest	7,419			19,430	(12,011)
Purchase of noncontrolling interest	9,626							9,626
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes (in shares)			163
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes	(2,508)		$ 2	(2,510)
Issuance of common stock (in shares)			4,920
Issuance of common stock	181,187		$ 49	181,138
Stock-based compensation	12,980			12,980
Issuance of exchangeable notes	14,009			14,009
Exchangeable notes hedge transactions	(17,785)			(17,785)
Net equity adjustment on Cabot Transaction	(43,097)			(43,097)
Other	7,771			1,687			3,663	2,421
Balance at end of period (in shares) at Dec. 31, 2018			30,884
Balance at end of period at Dec. 31, 2018	819,688		$ 309	208,498	720,189		(110,987)	1,679
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest	114,527				115,886			(1,359)
Net income	168,909				167,869			1,040
Other comprehensive (loss) income, net of tax	18,901						18,407	494
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes (in shares)			213
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes	(4,872)		$ 2	(4,874)
Stock-based compensation	12,557			12,557
Issuance of exchangeable notes	4,733			4,733
Exchangeable notes hedge transactions	1,792			1,792
Other	3,698			(116)			3,814	0
Balance at end of period (in shares) at Dec. 31, 2019			31,097
Balance at end of period at Dec. 31, 2019	1,025,406	$ (44,238)	$ 311	222,590	888,058	$ (44,238)	(88,766)	3,213
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	212,524				211,848			676
Other comprehensive (loss) income, net of tax	17,328						17,321	7
Purchase of noncontrolling interest	(3,822)			2,394				(1,428)
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes (in shares)			248
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes	(6,314)		$ 2	(6,316)
Stock-based compensation	16,560			16,560
Other	2,632						2,632
Balance at end of period (in shares) at Dec. 31, 2020			31,345
Balance at end of period at Dec. 31, 2020	$ 1,220,076		$ 313	$ 230,440	$ 1,055,668		$ (68,813)	$ 2,468

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Operating activities:
Net income	$ 212,524	$ 168,909	$ 109,736
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	42,780	41,029	41,228
Expense related to financing	51,117	3,523	11,710
Other non-cash interest expense, net	23,639	30,299	38,549
Stock-based compensation expense	16,560	12,557	12,980
Deferred income taxes	11,898	22,339	16,814
Goodwill impairment	0	10,718	0
Changes in expected current and future recoveries	(7,246)	0	0
Provision for (reversal of) allowances on receivable portfolios, net	0	8,108	(41,473)
Other, net	16,260	9,794	(7,016)
Changes in operating assets and liabilities
Deferred court costs	0	(3,646)	(17,701)
Other assets	8,980	29,025	(17,925)
Prepaid income tax and income taxes payable	(27,693)	(25,678)	24,284
Accounts payable, accrued liabilities and other liabilities	(35,955)	(62,244)	15,605
Net cash provided by operating activities	312,864	244,733	186,791
Investing activities:
Purchases of receivable portfolios, net of put-backs	(644,048)	(1,035,130)	(1,131,095)
Collections applied to investment in receivable portfolios, net	737,131	757,640	809,688
Purchases of property and equipment	(34,600)	(39,602)	(67,475)
Proceeds from sale of portfolios	0	107,937	0
Other, net	24,343	6,822	(8,634)
Net cash provided by (used in) investing activities	82,826	(202,333)	(397,516)
Financing activities:
Payment of loan and debt refinancing costs	(82,455)	(11,586)	(23,286)
Proceeds from credit facilities	1,820,634	603,634	942,186
Repayment of credit facilities	(2,290,822)	(586,429)	(571,144)
Proceeds from senior secured notes	1,313,385	454,573	0
Repayment of senior secured notes	(1,033,765)	(470,768)	(91,578)
Proceeds from issuance of convertible and exchangeable senior notes	0	100,000	172,500
Repayment of convertible senior notes	(89,355)	(84,600)	0
Payment for the purchase of PECs and noncontrolling interest	0	0	(234,101)
Other, net	(40,822)	(24,594)	(28,200)
Net cash (used in) provided by financing activities	(403,200)	(19,770)	166,377
Net (decrease) increase in cash and cash equivalents	(7,510)	22,630	(44,348)
Effect of exchange rate changes on cash and cash equivalents	4,359	12,287	(10,373)
Cash and cash equivalents, beginning of period	192,335	157,418	212,139
Cash and cash equivalents, end of period	189,184	192,335	157,418
Supplemental disclosures of cash flow information:
Cash paid for interest	169,553	178,948	198,797
Cash paid for income taxes, net of refunds	88,816	43,973	5,734
Supplemental schedule of non-cash investing and financing activities:
Stock consideration for the Cabot Transaction	0	0	180,559
Property and equipment acquired through finance leases	3,276	5,299	3,283
Real Estate Owned, Transfer to Real Estate Owned	$ 2,214	$ 5,058	$ 4,701

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

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

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

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

Encore Capital Group, Inc. (“Encore”), through its subsidiaries (collectively with Encore, the “Company”), is an international specialty finance company providing debt recovery solutions and other related services for consumers 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 obligations to credit originators, including banks, credit unions, consumer finance companies and commercial retailers. Defaulted receivables may also include receivables subject to bankruptcy proceedings. The Company also provides debt servicing and other portfolio management services to credit originators for non-performing loans.

Through Midland Credit Management, Inc. and its domestic affiliates (collectively, “MCM”), the Company is a market leader in portfolio purchasing and recovery in the United States. Through Cabot Credit Management Limited (“CCM”) and its subsidiaries and European affiliates (collectively, “Cabot”) the Company is one of the largest credit management services providers in Europe and a market leader in the United Kingdom and Ireland. These are the Company’s primary operations.

The Company also has investments and operations in Latin America and Asia-Pacific, which the Company refers to as “LAAP.” In August 2019, the Company completed the sale of Baycorp, which represented the Company’s investments and operations in Australia and New Zealand.

COVID-19

On March 11, 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) as a global pandemic, which continues to spread throughout the United States and around the world. The COVID-19 outbreak and resulting containment measures implemented by governments around the world, as well as increased business uncertainty, have impacted the Company. The circumstances around the COVID-19 pandemic are rapidly evolving and will continue to impact the Company’s business and its estimation of expected recoveries in future periods. The Company will continue to closely monitor the COVID-19 situation and update its assumptions accordingly.

Basis of Consolidation

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“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 VIEs 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) either the obligation to absorb losses or the right to receive benefits. Refer to “Note 8: Variable Interest Entities” for further details. All intercompany transactions and balances have been eliminated in consolidation.

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 of foreign operations are translated into U.S. dollars using period-end exchange rates, and revenues and expenses are translated into U.S. dollars using average exchange rates in effect during each period. The resulting translation adjustments are recorded as a component of other comprehensive income or loss. Equity accounts are translated at historical rates, except for the change in retained earnings during the year which is the result of the income statement translation process. Intercompany transaction gains or losses at each period end arising from subsequent measurement of balances for which settlement is not planned or anticipated in the foreseeable future are included as translation adjustments and recorded within other comprehensive income or loss. Translation gains or losses are the material components of accumulated other comprehensive income or loss and are reclassified to earnings upon the substantial sale or liquidation of investments in foreign operations.

Reclassifications

Certain immaterial reclassifications have been made to the prior years’ consolidated financial statements to conform to current year presentation. The Company presented certain refinancing charges such as make-whole provisions, call premiums, and write-offs of unamortized debt issuance costs and debt discount as interest expense in prior periods, and have reclassed such costs as loss on extinguishment of debt as a single line item in the Company’s consolidated statements of operations rather than presenting them as part of interest expense. These reclassifications have no effect on net income, total assets, accumulated earnings or cash flow statements as previously reported.

Change in Accounting Principle

On January 1, 2020, the Company adopted the new accounting standard for Financial Instruments - Credit Losses (“CECL”). CECL introduces a new impairment approach for credit loss recognition based on current expected lifetime losses rather than incurred losses. CECL applies to all financial assets carried at amortized costs, including the Company’s investment in receivable portfolios, which are defined as purchased credit deteriorated (“PCD”) financial assets under CECL. The adoption of CECL represents a significant change from the previous U.S. GAAP guidance relating to purchased credit impaired assets and resulted in changes to the Company’s accounting for its investment in receivable portfolios and the related income from the receivable portfolios.

As part of the adoption of CECL, the Company changed its accounting methodology for its court costs spent in its legal collection channel effective January 1, 2020. Previously, the Company capitalized its upfront court costs spent in its consolidated financial statements (“Deferred Court Costs”) and provided a reserve for those costs that it believed would ultimately be uncollectible. Effective January 1, 2020, the Company expenses all of its court costs as incurred. All expected cash flows, including all the expected collections from the legal channel, are included in the measurement of the negative allowance, or investment in receivable portfolios, at a discounted value. Upon transition, an adjustment was made to retained earnings to reflect the net change from an undiscounted to discounted value prior to writing-off uncollectible receivables and establishing a balance for discounted value of future recoveries of amounts expected to be collected.

The Company has not adjusted prior period comparative information and will continue to disclose prior period financial information in accordance with the previous accounting guidance. The following table summarizes the cumulative effects of adopting the CECL guidance on the Company’s consolidated statements of financial condition as of January 1, 2020 (in thousands):


	Balance as of December 31, 2019		Adjustment		Opening Balance as of January 1, 2020
Assets
Investment in receivable portfolios, net	$	3,283,984	$	44,166	$	3,328,150
Deferred court costs, net	100,172		(100,172)		—
Liabilities
Other liabilities (for deferred tax liabilities)	147,436		(11,768)		135,668
Equity
Accumulated earnings	888,058		(44,238)		843,820

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The ASU provides optional expedients and exceptions for applying GAAP to transactions affected by reference rate (e.g., LIBOR) reform if certain criteria are met, for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. Additionally, in January 2021, the FASB issued ASU 2021-01, which clarifies the scope of Topic 848 and allows entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates. These ASUs are effective as of March 12, 2020 through December 31, 2022 and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating its contracts and the optional expedients provided by the new standards. The ASUs are currently not expected to have a material impact on the Company’s consolidated financial statements.

Effective January 1, 2019, the Company adopted Accounting Standard Codification 842 - Leases using the modified retrospective method. Refer to “Note 11: Leases” for details of the Company’s leases.

Recent Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Effective

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, Debt — Debt with Conversion and Other Options (“Subtopic 470-20”) and Derivatives and Hedging — Contracts in Entity’s Own Equity (“Subtopic 815-40”): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). The ASU simplifies the accounting for convertible instruments by removing certain models in Subtopic 470-20 and revises the guidance in Subtopic 815-40 to simplify the accounting for contracts in an entity’s own equity. The ASU

also amends the guidance to improve the consistency of earnings per share calculations, which requires the if-converted method be used for convertible instruments. ASU 2020-06 is effective for reporting periods beginning after December 15, 2021 with early adoption permitted for reporting periods beginning after December 15, 2020. The amendment is to be adopted through either a modified retrospective or fully retrospective method of transition. Under ASU 2020-06, the Company’s convertible and exchangeable notes will no longer be bifurcated to a debt component and an equity component, instead, they will be carried as a single liability. The interest expense recognized on the convertible and exchangeable notes will be based on coupon rates, rather than higher effective interest rates. As a result, the Company will recognize lower interest expense. The Company’s convertible and exchangeable notes require net share settlement. Additionally, the if-converted method will not substantially change the dilutive effect for convertible instruments that require net share settlement, only in-the-money shares will be included in the dilutive effect. The Company will early adopt ASU 2020-06 as of January 1, 2021 using a modified-retrospective approach, by recording a decrease to opening accumulated earnings of approximately $16.1 million, which represents the debt discount of all outstanding convertible and exchangeable notes as of December 31, 2020, adjusted for income tax effect. Implementation efforts have been substantially complete.

With the exception of the updated standards discussed above, there have been no new accounting pronouncements not yet effective as of December 31, 2020 that have significance, or potential significance, to the Company’s consolidated financial statements.

Use of Estimates

The preparation of financial statements, in conformity with GAAP, 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. The inputs into the judgments and estimates consider the economic implications of the COVID-19 pandemic on the Company’s critical and significant accounting estimates. 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 maintains its cash and cash equivalents in multiple financial institutions and certain account balances exceed federally insurable limits. To date, the Company has experienced no loss or lack of access to cash in its bank accounts. The Company believes any risks are mitigated by maintaining cash with highly rated financial institutions. The carrying amounts reported in the consolidated statements of financial condition for cash and cash equivalents approximate their fair value.

Included in cash and cash equivalents is cash collected on behalf of and due to third-party clients. A corresponding balance is included in accounts payable and accrued liabilities. The balance of cash held for clients was $20.3 million and $25.0 million as of December 31, 2020 and 2019, respectively.

Investment in Receivable Portfolios

Current Accounting Policy

As a result of the adoption of CECL, the Company revised its accounting policy for investment in receivable portfolios effective January 1, 2020:

The Company purchases portfolios of loans that have experienced significant deterioration of credit quality since origination from banks and other financial institutions. These financial assets are defined as purchased credit deteriorated (or “PCD”) assets under CECL. Under the PCD accounting model, the purchased assets are recognized at their face value with an offsetting allowance and noncredit discount allocated to the individual receivables as the unit of account is at the individual loan level. Since each loan is deeply delinquent and deemed uncollectible at the individual loan level, the Company applies its charge-off policy and fully writes-off the amortized costs (i.e., face value net of noncredit discount) of the individual receivables immediately after purchasing the portfolio. The Company then records a negative allowance that represents the present value of all expected future recoveries for pools of receivables that share similar risk characteristics using a discounted cash flow approach, which ultimately equals the amount paid for a portfolio purchase and presented as “Investment in receivable portfolios, net” in the Company’s consolidated statements of financial condition. The discount rate is an effective interest rate (or “purchase EIR”) based on the purchase price of the portfolio and the expected future cash flows at the time of purchase. The amount of the negative allowance (i.e., investment in receivable portfolios) will not exceed the total amortized cost basis of the loans written-off.

Receivable portfolio purchases are aggregated into pools based on similar risk characteristics. Examples of risk characteristics include financial asset type, collateral type, size, interest rate, date of origination, term, and geographic location.

The Company’s static pools are typically grouped into credit card, purchased consumer bankruptcy, and mortgage portfolios. The Company further groups these static pools by geographic location. Once a pool is established, the portfolios will remain in the designated pool unless the underlying risk characteristics change, which is not expected due to the delinquent nature of the individual loans. The purchase EIR of a pool will not change over the life of the pool even if expected future cash flows change.

Revenue is recognized for each static pool over the economic life of the pool. The Company makes significant assumptions in determining the economic life of a pool, including the reasonable and supportable economic forecast period based on asset type and geography, which considers the availability of forward-looking scenarios and their respective time horizons. In general, the Company forecasts recoveries over one or two years prior to reverting to historical averages at an estimate-level over the remaining life using various methodologies depending on the asset type and geography. The speed at which forecasts revert varies based on the spread between the forecast period and historical data. In addition, estimated recoveries include a qualitative component, which generally reflects management’s assessment of macroeconomic environment and business initiatives. The Company continues to evaluate the reasonable economic life of a pool and reversion method annually. Revenue primarily includes two components: (1) accretion of the discount on the negative allowance due to the passage of time, which is included in “Revenue from receivable portfolios” and (2) changes in expected cash flows, which includes (a) the current period variances between actual cash collected and expected cash recoveries and (b) the present value change of expected future recoveries, and is presented in our consolidated statements of operations as “Changes in expected current and future recoveries.”

The Company measures expected future recoveries based on historical experience, current conditions, and reasonable and supportable forecasts. Factors that may change the expected future recoveries may include both internal as well as external factors. Internal factors include operational performance, such as capacity and the productivity of our collection staff. External factors that may have an impact on our collections include macroeconomic conditions, new laws or regulations, and new interpretations of existing laws or regulations.

The Company elected not to maintain its previously formed pool groups with amortized costs at transition. Certain pools already fully recovered their cost basis and became zero basis portfolios (“ZBA”) prior to the transition. The Company did not establish a negative allowance from ZBA pools as the Company elected the Transition Resource Group for Credit Losses’ practical expedient to retain the integrity of its legacy pools. All subsequent collections to the ZBA pools are recognized as ZBA revenue, which is included in revenue from receivable portfolios in the Company’s consolidated statements of operations.

Accounting Policy Prior to January 1, 2020

Discrete receivable portfolio purchases during the same fiscal quarter were aggregated into pools based on common risk characteristics. Once a static pool was established, the portfolios were permanently assigned to the pool. Receivable portfolios were recorded at cost at the time of acquisition. The purchase cost of the portfolios included certain fees paid to third parties incurred in connection with the direct acquisition of the receivable portfolios.

Revenues were calculated 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 remained unchanged throughout the life of the pool, unless there was an increase in subsequent expected cash flows. Subsequent increases in expected cash flows were recognized prospectively through an upward adjustment of the pool’s IRR over its remaining life. Subsequent decreases in expected cash flows did not change the IRR, but were recognized as an allowance to the cost basis of the pool, and were reflected in the consolidated statements of operations as an adjustment to revenue, with a corresponding valuation allowance, offsetting the investment in receivable portfolios in the consolidated statements of financial condition. With gross collections being discounted at monthly IRRs, when collections were lower in the near term, even if substantially higher collections were expected later in the collection curve, an allowance charge could result.

The Company accounted 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 was accrued based on each pool’s IRR applied to each pool’s adjusted cost basis. The cost basis of each pool was increased by revenue earned and portfolio allowance reversals and decreased by gross collections and portfolio allowances. Once the net book value of a static pool has been fully recovered, it became ZBA and all subsequent collections were recognized as ZBA revenue.

If the amount and timing of future cash collections on a pool of receivables were not reasonably estimable, the Company accounted for such portfolios on the cost recovery method as Cost Recovery Portfolios. The accounts in these portfolios had 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 was recognized until the carrying value of a Cost Recovery Portfolio has been fully recovered.

See “Note 4: Investment in Receivable Portfolios, Net” for further discussion of investment in receivable portfolios.

Transfers of Financial Assets

The Company accounts for transfers of financial assets as sales when it has surrendered control over the related assets. Whether control has been relinquished requires, among other things, an evaluation of relevant legal considerations and an assessment of the nature and extent of the Company’s ongoing involvement with the assets transferred. Gains and losses stemming from transfers reported as sales are included in “Other revenues” in the Company’s consolidated statements of operations. Assets obtained and liabilities incurred in connection with transfers reported as sales are initially recognized in the statements of financial condition at fair value.

Transfers of financial assets that do not qualify for sale accounting are reported as collateralized borrowings. Accordingly, the related assets remain on the Company’s statements of financial condition and continue to be reported and accounted for as if the transfer had not occurred. Cash proceeds from these transfers are reported as liabilities, with attributable interest expense recognized over the life of the related transactions. To date, the Company has not had any transfers of financial assets that did not qualify for sale accounting.

Servicing Revenue

Certain of the Company’s subsidiaries earn servicing revenue by providing portfolio management services to credit originators for non-performing loans. The Company recognizes servicing revenue when it satisfies the performance obligation over time by providing debt solution and credit management services. The Company typically invoices for its services monthly with payment terms of 30 days.

Goodwill and Other Intangible Assets

Goodwill represents the excess of purchase price over the value assigned to tangible and identifiable intangible assets, liabilities assumed, and noncontrolling interest of businesses acquired. Acquired intangible assets other than goodwill are amortized over their useful lives unless the lives are determined to be indefinite. Goodwill is 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 14: 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.

The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company measures recoverability by comparing the carrying amount to the future undiscounted cash flows that the asset is expected to generate. If the asset is not recoverable, its carrying amount would be adjusted down to its fair value.

Deferred Court Costs

The Company pursues legal collections using a network of attorneys that specialize in collection matters and through its internal legal channel. The Company generally pursues collections through legal means only when it believes a consumer has sufficient assets to repay their indebtedness but has, to date, been unwilling to pay. In order to pursue legal collections, the Company is required to pay certain upfront costs to the applicable courts that are recoverable from the consumer. Effective January 1, 2020, the Company expenses all of its court costs as incurred and no longer capitalizes such costs as Deferred Court Costs. All expected cash flows, including all the expected collections from the legal channel, are included in the measurement of the negative allowance, or investment in receivable portfolios, at a discounted value.

Prior to January 1, 2020, the Company capitalized Deferred Court Costs in its consolidated financial statements and provided a reserve for those costs that it estimated to be uncollectible. The Company determined the reserve based on an estimated court cost recovery rate established based on its analysis of historical court costs recovery data. The Company estimated deferral periods for Deferred Court Costs based on jurisdiction and nature of litigation and wrote off any Deferred Court Costs not recovered within the respective deferral period. Collections received from debtors were first applied against related court costs with the balance applied to the debtors’ account balance. See “Note 5: Deferred Court Costs, Net” for further details.

Income Taxes

The Company uses the asset and liability method of accounting 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 it is more likely than not the deferred tax assets will not 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 statements of operations. The Company includes interest and penalties related to income taxes within its provision for income taxes. See “Note 10: 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 uses the Black-Scholes option-pricing model to determine the fair-value of stock option grants. The Company has certain share awards that include market conditions that affect vesting, the fair value of these shares is estimated using a lattice model. Compensation cost is not adjusted if the market condition is not met, as long as the requisite service is provided. For share awards that require service and performance conditions, 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. Stock-based compensation expenses are included in “Salaries and Employee Benefits” in the Company’s consolidated statements of operations. See “Note 9: 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 certain derivative instruments as cash flow hedges. The changes in fair value of derivatives designated as cash flow hedges is recorded each period, net of tax, in accumulated other comprehensive income or loss until the related hedged transaction occurs. If 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 or expense at that time. If the hedged cash flows are still reasonably possible to occur, the hedged cash flows will continue to be recorded in accumulated other comprehensive income or loss until the hedged cash flows are no longer probable of occurring. The Company classifies the cash flows from a derivative instrument that is accounted for as a cash flow hedge (and that does not contain an other-than-insignificant financing element at inception) in the same category as the cash flows from the items being hedged. See “Note 3: Derivatives and Hedging Instruments” for further discussion.

Concentration of Supply Risk

A significant percentage of the Company’s portfolio purchases for any given fiscal quarter or year may be concentrated with a few large sellers, some of which may also involve forward flow arrangements. A significant decrease in the volume of portfolio available from any of the Company’s principal sellers would force the Company to seek alternative sources of charged-off receivables.

The Company may be unable to find alternative sources from which to purchase charged-off receivables, and even if it could successfully replace these purchases, the search could take time and the receivables could be of lower quality, cost more, or both, any of which could adversely affect the Company’s business, financial condition and operating results.

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 and exchangeable senior notes, if applicable.

A reconciliation of shares used in calculating earnings per basic and diluted shares follows for the periods presented (in thousands, except per share amounts):


	Year Ended December 31,
	2020		2019		2018



Net income attributable to Encore Capital Group, Inc.	$	211,848	$	167,869	$	115,886

Total weighted-average basic shares outstanding	31,427		31,210		28,313
Dilutive effect of stock-based awards	283		264		259

Total weighted-average dilutive shares outstanding	31,710		31,474		28,572




Basic earnings per share	$	6.74	$	5.38	$	4.09



Diluted earnings per share	$	6.68	$	5.33	$	4.06

Anti-dilutive employee stock options outstanding were approximately 51,000, 64,000 and 66,000 during the years ended December 31, 2020, 2019, and 2018, respectively.

Fair Value Measurements

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 2: Fair Value Measurements

Fair value is defined 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 Company uses 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, 2020
	Level 1		Level 2		Level 3		Total
Assets

Cross-currency swap agreements	$	—	$	11,578	$	—	$	11,578
Interest rate cap contracts	—		659		—		659
Liabilities

Interest rate swap agreements	—		(5,232)		—		(5,232)
Contingent consideration	—		—		(2,957)		(2,957)


	Fair Value Measurements as of December 31, 2019
	Level 1		Level 2		Level 3		Total
Assets

Foreign currency exchange contracts	$	—	$	1,473	$	—	$	1,473
Interest rate cap contracts	—		2,460		—		2,460
Liabilities
Interest rate swap agreements	—		(9,116)		—		(9,116)
Contingent consideration	—		—		(66)		(66)

Derivative Contracts:

The Company uses derivative instruments to manage its exposure to fluctuations in interest rates and foreign currency exchange rates. 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.

Contingent Consideration:

The Company carries certain contingent liabilities resulting from its mergers and acquisition activities. Certain sellers of the Company’s acquired entities could earn additional earn-out payments in cash based on the entities’ subsequent operating performance. The Company recorded the acquisition date fair values of these contingent liabilities, based on the likelihood of contingent earn-out payments, as part of the consideration transferred. The earn-out payments are subsequently remeasured to fair value at each reporting date, based on actual and forecasted operating performance.

The following table provides a roll-forward of the fair value of contingent consideration for the years ended December 31, 2020, 2019 and 2018 (in thousands):


	Amount
Balance as of December 31, 2017	$	10,612
Issuance of contingent consideration	1,728
Change in fair value of contingent consideration	(5,664)
Payment of contingent consideration	(271)
Effect of foreign currency translation	(207)
Balance as of December 31, 2018	6,198
Change in fair value of contingent consideration	(2,300)
Payment of contingent consideration	(3,686)
Effect of foreign currency translation	(146)
Balance as of December 31, 2019	66
Issuance of contingent consideration	2,848
Payment of contingent consideration	(88)
Effect of foreign currency translation	131
Balance as of December 31, 2020	$	2,957

Redeemable Noncontrolling Interest:

Some minority shareholders in certain subsidiaries of the Company had the right, at certain times, to require the Company to acquire their ownership interest in those entities at fair value and, in some cases, to force a sale of the subsidiary if the Company chose not to purchase their interests at fair value. In connection with various business transactions, the Company redeemed or deconsolidated all of its redeemable noncontrolling interest during the year ended December 31, 2018 and no longer carried any redeemable noncontrolling interest as of December 31, 2018.

The components of the change in the redeemable noncontrolling interest for the years ended December 31, 2018 are presented in the following table (in thousands):


	Amount











Balance as of December 31, 2017	$	151,978

Redemption of redeemable noncontrolling interest	(138,835)
Deconsolidation upon sale of redeemable noncontrolling interest	5,535
Net loss attributable to redeemable noncontrolling interest	(4,791)
Adjustment of the redeemable noncontrolling interest to fair value	(7,419)
Effect of foreign currency translation attributable to redeemable noncontrolling interest	(6,468)
Balance as of December 31, 2018	$	—

Non-Recurring Fair Value Measurement:

Certain assets are measured at fair value on a nonrecurring basis. These assets include real estate-owned assets classified as held for sale at the lower of their carrying value or fair value less cost to sell. The fair value of the assets held for sale and estimated selling expenses were determined at the time of initial recognition and in each reporting period using Level 3 measurements. The fair value estimate of the assets held for sale was approximately $42.2 million and $46.7 million as of December 31, 2020 and December 31, 2019, respectively.

Financial Instruments Not Required To Be Carried At Fair Value

The table below summarizes fair value estimates for the Company’s financial instruments that are not required to be carried at fair value. The total of the fair value calculations presented does not represent, and should not be construed to represent, the underlying value of the Company. The carrying amounts in the following table are recorded in the consolidated statements of financial condition as of December 31, 2020 and December 31, 2019 (in thousands):


	December 31, 2020				December 31, 2019
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial Assets
Investment in receivable portfolios	$	3,291,918	$	3,705,672	$	3,283,984	$	3,464,050
Deferred court costs	—		—		100,172		100,172
Financial Liabilities
Convertible notes and exchangeable notes(1)	564,136		622,081		642,547		693,708
Senior secured notes(2)	1,642,058		1,684,729		1,127,435		1,170,945

________________________

(1)Carrying amount represents the portion of the convertible and exchangeable notes classified as debt, while estimated fair value pertains to the face amount of the notes.

(2)Carrying amount represents historical cost, adjusted for any related debt discount or debt premium.

Investment in Receivable Portfolios:

The fair value of investment in receivable portfolios is measured using Level 3 inputs by discounting the estimated future cash flows generated by the Company’s proprietary forecasting models. The key inputs include the estimated future gross cash flow, average cost to collect, and discount rate. The determination of such inputs requires significant judgment, including assessing the assumed market participant’s cost structure, its determination of whether to include fixed costs in its valuation, its collection strategies, and determining the appropriate weighted average cost of capital. The Company evaluates the use of these key inputs on an ongoing basis and refines the data as it continues to obtain better information from market participants in the debt recovery and purchasing business.

Deferred Court Costs:

Effective January 1, 2020, the Company no longer carries Deferred Court Costs as a result of its change in accounting policy. The fair value estimate for Deferred Court Costs as of December 31, 2019 involved Level 3 inputs as there was little observable market data available and management was required to use significant judgment in its estimates.

Borrowings:

The Company’s convertible notes, exchangeable notes and senior secured notes are carried at historical cost, adjusted for the applicable debt discount. The fair value estimate for the convertible and exchangeable notes incorporates quoted market prices using Level 2 inputs. The fair value of the senior secured notes is estimated using widely accepted valuation techniques, including discounted cash flow analyses using available market information on discount and borrowing rates with similar terms, maturities, and credit ratings. Accordingly, the Company used Level 2 inputs for these debt instrument fair value estimates.

The carrying value of the Company’s senior secured revolving credit facility agreement approximates fair value due to the short-term nature of the interest rate period. The Company’s borrowings also include private placement notes, securitisation senior facility and finance lease liabilities for which the carrying value approximates respective fair value.

- Definition

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, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Instruments

Note 3: Derivatives and Hedging Instruments

The Company may periodically enter into derivative financial instruments to manage risks related to interest rates and foreign currency. Certain of the Company’s derivative financial instruments qualify for hedge accounting treatment.

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, 2020

December 31, 2019

Balance Sheet
Location

Fair Value

Balance Sheet
Location

Fair Value

Derivatives designated as hedging instruments:

Interest rate cap contracts

Other assets

659

Other assets

2,460

Foreign currency exchange contracts

Other assets

—

Other assets

443

Interest rate swap agreements

Other liabilities

(5,232)

Other liabilities

(9,116)

Cross-currency swap agreements

Other assets

11,578

Other assets

—

Derivatives not designated as hedging instruments:

Foreign currency exchange contracts

Other assets

—

Other assets

1,030

Derivatives Designated as Hedging Instruments

The Company has operations in foreign countries, which expose the Company to foreign currency exchange rate fluctuations due to transactions denominated in foreign currencies. To mitigate a portion of this risk, the Company enters into derivative financial instruments, principally foreign currency forward contracts with financial counterparties. 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.

The Company held certain foreign currency forward contracts designated as cash flow hedging instruments that matured in June 2020. As of December 31, 2020, the Company had no outstanding forward contracts that were designated as cash flow hedging instruments. 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, 2020, 2019, or 2018.

The Company may periodically enter into interest rate swap agreements to reduce its exposure to fluctuations in interest rates on variable interest rate debt and their impact on earnings and cash flows. Under the swap agreements, the Company receives floating interest rate payments and makes interest payments based on fixed interest rates. The Company designates its interest rate swap instruments as cash flow hedges. Previously, the Company held four interest rate swap agreements that hedged the risk of USD-LIBOR interest rate fluctuations for the Encore revolving credit facility and term loan facility. As part of the financing transactions completed in September 2020, the Company settled two of the interest rate swap agreements. As of December 31, 2020, there were two interest rate swap agreements outstanding with a total notional amount of $196.4 million. The Company expects to reclassify approximately $8.7 million of net derivative loss from OCI into earnings relating to interest rate swaps within the next 12 months.

In connection with the financing transactions discussed above, the Company entered into cross-currency swap agreements, which are used to manage foreign currency exchange risk by converting fixed-rate Euro-denominated borrowings including periodic interest payments and the payment of principal at maturity to fixed-rate USD debt and are accounted for as cash flow hedges. As of December 31, 2020, there were four cross-currency swap agreements outstanding with a total notional amount of €350.0 million (approximately $426.8 million based on an exchange rate of $1.00 to €0.82, the exchange rate as of

December 31, 2020). The Company expects to reclassify approximately $3.8 million of net derivative loss from OCI into earnings relating to cross-currency swaps within the next 12 months.

Previously, the Company held two interest rate cap contracts (the “2018 Caps”) that hedged the risk of GBP-LIBOR interest rate fluctuations for the Cabot Securitisation Senior Facility interest payments. In February 2020, the Company settled the 2018 Caps and ceased the hedge relationship, which resulted in the reclassification of the associated other comprehensive loss balance to interest expense for approximately $2.5 million during the first quarter of 2020.

As of December 31, 2020, the Company held two interest rate cap contracts with a notional amount of approximately $965.8 million that are used to manage its risk related to interest rate fluctuations on the Company’s variable interest rate bearing debt. The interest rate cap hedging the fluctuations in three-month EURIBOR floating rate debt (“2019 Cap”) has a notional amount of €400.0 million (approximately $487.7 million based on an exchange rate of $1.00 to €0.82, the exchange rate as of December 31, 2020) and matures in 2024. The interest rate cap hedging the fluctuations in sterling overnight index average (“SONIA”) bearing debt (“2020 Cap”) has a notional amount of £350.0 million (approximately $478.1 million based on an exchange rate of $1.00 to £0.73, the exchange rate as of December 31, 2020) and matures in 2023. The 2019 Cap is structured as a series of European call options (“Caplets”) such that if exercised, the Company will receive a payment equal to 3-months EURIBOR on a notional amount equal to the hedged notional amount net of a fixed strike price. The 2020 Cap is also structured as a series of Caplets such that if exercised, the Company will receive a payment equal to SONIA on a notional amount equal to the hedged notional amount net of a fixed strike price. Each interest rate reset date, the Company will elect to exercise the Caplet or let it expire. The potential cash flows from each Caplet are expected to offset any variability in the cash flows of the interest payments to the extent EURIBOR or SONIA exceeds the strike price of the Caplets. The Company expects the hedge relationships to be highly effective and designates the 2019 Cap and 2020 Cap as cash flow hedge instruments. The Company expects to reclassify approximately $0.5 million of net derivative loss from OCI into earnings relating to interest rate caps within the next 12 months.

The following table summarizes the effects of derivatives in cash flow hedging relationships designated as hedging instruments in the Company’s consolidated financial statements during the periods presented (in thousands):


Derivatives Designated as Hedging Instruments	Gain (Loss) Recognized in OCI				Location of Gain (Loss) Reclassified from OCI into Income	Gain (Loss) Reclassified from OCI into Income
	Year Ended December 31,					Year Ended December 31,
	2020		2019			2020		2019
Foreign currency exchange contracts	$	(341)	$	1,100	Salaries and employee benefits	$	49	$	383
Foreign currency exchange contracts	(44)		(56)		General and administrative expenses	11		(19)
Interest rate swap agreements	(7,441)		(6,347)		Interest expense	(7,893)		(2,560)
Interest rate cap contracts	(3,001)		(1,752)		Interest expense	(2,846)		146
Cross-currency swap agreements	10,503		—		Interest expense / Other expense	10,121		—

Derivatives Not Designated as Hedging Instruments

The Company enters into currency exchange forward contracts to reduce the effects of currency exchange rate fluctuations between the British Pound and Euro. These derivative contracts generally mature within one to three months and are not designated as hedge instruments for accounting purposes. The Company continues to monitor the level of exposure of the foreign currency exchange risk and may enter into additional short-term forward contracts on an ongoing basis. The gains or losses on these derivative contracts are recognized in other income or expense based on the changes in fair value. As of December 31, 2020, the Company had no outstanding currency exchange forward contracts that were not designated as cash flow hedging instruments.

In May 2018, in anticipation of the completion of the purchase of all of the outstanding equity of CCM not owned by Encore (the “Cabot Transaction”), Encore entered into a foreign exchange forward contract with a notional amount of £176.0 million, which was approximately the amount of cash consideration for the Cabot Transaction. The forward contract settled in August 2018 at a total loss of $9.3 million. This loss was substantially offset by a decrease in the final purchase price in U.S. dollars for the Cabot Transaction.

The following table summarizes the effects of derivatives not designated as hedging instruments on the Company’s consolidated statements of operations during the periods presented (in thousands):


Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain (Loss) Recognized in Income
		Year ended December 31,
		2020		2019		2018
Foreign currency exchange contracts	Other expense	$	3,564	$	(2,959)	$	(9,221)
Interest rate cap contracts	Interest expense	—		—		(1,568)

Investment in Receivable Portfolios, Net

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Investment in Receivable Portfolios, Net

Note 4: Investment in Receivable Portfolios, Net

As discussed in “Note 1: Ownership, Description of Business, and Summary of Significant Accounting Policies,” effective January 1, 2020, the Company accounts for its investment in receivable portfolios as PCD assets under CECL and changed its accounting policy for reimbursable court costs. As a result, the Company wrote-off the previous Deferred Court Costs balance that represented an undiscounted value of recoverable historic spend as a result of a loss-rate methodology, and established a discounted value of expected future recoveries of these reimbursable court costs, which is included in the beginning balance of the investment in receivable portfolios.

The table below illustrates the Company’s transition approach for its investment in receivable portfolios as of January 1, 2020 (in thousands):


	Amount
Investment in receivable portfolios prior to transition	$	3,283,984
Initial transitioned deferred court costs	44,166
	3,328,150
Allowance for credit losses	79,028,043
Amortized cost	82,356,193
Noncredit discount	132,533,142
Face value	214,889,335
Write-off of amortized cost	(82,356,193)
Write-off of noncredit discount	(132,533,142)
Negative allowance	3,328,150
Initial negative allowance from transition	$	3,328,150

The table below provides the detail on the establishment of negative allowance for expected recoveries of portfolios purchased during the periods presented (in thousands):


	Year Ended
	December 31, 2020
Purchase price	$	659,872
Allowance for credit losses	1,703,420
Amortized cost	2,363,292
Noncredit discount	3,464,670
Face value	5,827,962
Write-off of amortized cost	(2,363,292)
Write-off of noncredit discount	(3,464,670)
Negative allowance	659,872
Negative allowance for expected recoveries - current period purchases	$	659,872

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


	Year Ended December 31,
	2020		2019		2018
Balance, beginning of period	$	3,328,150	$	3,137,893	$	2,890,613
Purchases of receivable portfolios	659,872		1,046,696		1,131,898
Deconsolidation of receivable portfolios(1)	(2,822)		(51,935)		—
Put-backs and Recalls	(15,824)		(11,591)		(14,429)
Disposals and transfers to real estate owned	(9,459)		(11,495)		(12,456)
Sale of receivable portfolios(2)	—		(98,636)		—
Cash collections	(2,111,848)		(2,026,928)		(1,967,620)
Revenue from receivable portfolios	1,374,717		1,269,288		1,167,132
Changes in expected current period recoveries	228,075		—		—
Changes in expected future period recoveries	(220,829)		—		—
Portfolio (allowance) reversals, net	—		(8,108)		41,473
Foreign currency adjustments	61,886		38,800		(98,718)
Balance, end of period	$	3,291,918	$	3,283,984	$	3,137,893

________________________

(1)Deconsolidation of receivable portfolios as a result of the Company’s divestiture of its investment in Brazil for the year ended December 31, 2020 and as a result of the sale of Baycorp for the year ended December 31, 2019.

(2)Represents the sale of certain portfolios in the Company’s European operations under its co-investment framework.

Changes in expected current period recoveries represent over and under-performance in the reporting period. Collections during the year ended December 31, 2020 significantly outperformed the projected cash flows by approximately $228.1 million. The Company believes the collection over-performance was largely driven by the reduced near-term expected recoveries as a result of adjustments made to the projected cash flow forecast during the first quarter of 2020 associated with the COVID-19 pandemic. The over-performance was also a result of sustained improvements in portfolio collections driven by liquidation improvement initiatives.

While the Company now has additional information with respect to the impact on collections of the COVID-19 pandemic, the future outlook remains uncertain, and will continue to evolve depending on future developments, including the duration and spread of the pandemic and related actions taken by governments. When reassessing the future forecasts of expected lifetime recoveries during the year ended December 31, 2020, management considered historical and current collection performance, uncertainty in economic forecasts in the geographies in which we operate, and believes that the operational disruption as a result of the COVID-19 pandemic has, for the near term, been resolved through a combination of social distancing in the workplace and working remotely. However, the macroeconomic driven consumer distress is still present and will likely continue to impact the Company’s collections performance in the near future. As a result, the Company has updated its forecast, resulting in a reduction of total estimated remaining collections which in turn, when discounted to present value, resulted in a provision for credit loss adjustment of approximately $220.8 million during the year ended December 31, 2020. The circumstances around this pandemic are evolving rapidly and will continue to impact the Company’s business and its estimation of expected recoveries in future periods. The Company will continue to closely monitor the COVID-19 situation and update its assumptions accordingly.

Accretable yield represented the amount of revenue on purchased receivable portfolios the Company expected to recognize over the remaining life of its existing portfolios. The following table summarizes the change in accretable yield under the previous accounting guidance during the period presented (in thousands):


Balance as of December 31, 2018	$	4,026,206
Revenue from receivable portfolios	(1,269,288)
Allowance on receivable portfolios, net	8,108
Additions on existing portfolios, net	524,964
Additions for current purchases, net	1,081,774
Effect of foreign currency translation	77,307
Balance as of December 31, 2019	$	4,449,071

The following table summarizes the change in the valuation allowance for investment in receivable portfolios as accounted for under the previous accounting guidance during the period presented (in thousands):


	Valuation Allowance
Balance as of December 31, 2017	$	102,576
Provision for portfolio allowances	14,421
Reversal of prior allowances	(55,894)
Effect of foreign currency translation	(472)
Balance as of December 31, 2018	60,631
Provision for portfolio allowances	36,806
Reversal of prior allowances	(28,698)
Sale of Baycorp	(1,036)
Effect of foreign currency translation	1,776
Balance as of December 31, 2019	$	69,479

Deferred Court Costs, Net

12 Months Ended

Dec. 31, 2020

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Deferred Court Costs, Net

Note 5: Deferred Court Costs, Net

As discussed in “Note 1: Ownership, Description of Business, and Summary of Significant Accounting Policies,” effective January 1, 2020 and as part of the adoption of CECL, the Company changed its method of accounting for court costs spent in its legal collection channel. The Company now expenses all of its court costs as incurred and includes all expected recoveries, including the recoveries from the legal channel, in the measurement of the investment in receivable portfolios at a discounted value. As a result, the Company no longer carries deferred court costs.

Net deferred court costs under the previous accounting method consisted of the following as of the date presented (in thousands):


	December 31, 2019
Court costs advanced	$	891,207
Court costs recovered	(369,043)
Court costs reserve	(421,992)
Deferred court costs, net	$	100,172

A roll-forward of the Company’s court cost reserve as accounted for under the previous accounting method is as follows for the periods presented (in thousands):


	Year Ended December 31,
	2019		2018
Balance as of beginning of period	$	(396,460)	$	(364,015)
Provision for court costs	(82,987)		(90,026)
Charge-offs	60,618		53,383
Effect of foreign currency translation	(3,163)		4,198
Balance as of end of period	$	(421,992)	$	(396,460)

Composition of Certain Financial Statement Items

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Composition of Certain Financial Statement Items

Note 6: Composition of Certain Financial Statement Items

Property and Equipment, Net

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


	December 31, 2020		December 31, 2019
Computer equipment and software	$	194,678	$	167,045
Leasehold improvements	43,621		39,542
Furniture, fixtures and equipment	10,514		10,428
Telecommunications equipment and other	3,450		3,156
Construction in process	4,739		2,089
	257,002		222,260
Less: accumulated depreciation and amortization	(129,705)		(102,209)
	$	127,297	$	120,051

Depreciation and amortization expense related to property and equipment was $34.8 million, $33.3 million, and $29.5 million during the years ended December 31, 2020, 2019, and 2018, respectively.

Other Assets

Other assets consist of the following as of the dates presented (in thousands):


	December 31, 2020		December 31, 2019
Operating lease right-of-use assets	$	72,164	$	75,254
Identifiable intangible assets, net	45,012		51,371
Real estate owned	42,173		46,717
Income tax deposit	35,853		5,822
Deferred tax assets	33,202		24,134
Prepaid expenses	26,717		22,272
Service fee receivables	26,539		27,705
Other financial receivables	12,238		17,308



Other	55,264		58,640
Total	$	349,162	$	329,223

Borrowings

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Borrowings

Note 7: Borrowings

The Company is in compliance in all material respects with all covenants under its financing arrangements as of December 31, 2020. The components of the Company’s consolidated borrowings were as follows as of the dates presented (in thousands):


	December 31, 2020		December 31, 2019
Global senior secured revolving credit facility	$	481,007	$	—
Encore revolving credit facility	—		492,000
Encore term loan facility	—		171,677
Encore private placement notes	146,550		308,750
Senior secured notes	1,651,619		1,129,039
Convertible notes and exchangeable notes	583,500		672,855
Cabot senior revolving credit facility	—		285,749
Cabot securitisation senior facility	478,131		464,092
Other	24,398		54,151
Finance lease liabilities	8,288		8,121
	3,373,493		3,586,434
Less: debt discount and issuance costs, net of amortization	(91,859)		(73,237)
Total	$	3,281,634	$	3,513,197

In September 2020 the Company entered into various transactions, agreements and amendments related to its borrowings including (collectively, the “Financing Transactions”):

•an amended multi-currency revolving credit facility that formerly supported only Cabot that now supports the operations of all operating units;

•an issuance of €350.0 million (approximately $410.8 million) in 4.875% senior secured notes due 2025; and

•an amendment to the terms of the existing Senior Secured Notes (defined below).

Following the Financing Transactions, Encore is the parent of the restricted group for the Global Senior Facility, the Senior Secured Notes and the Private Placement Notes, each of which is now guaranteed by the same group of material Encore subsidiaries and secured by the same collateral, which represents substantially all of the assets of those subsidiaries.

In connection with the Financing Transactions, Encore repaid and terminated the Encore Senior Secured Credit Facilities (defined below) and prepaid a portion of its Encore Private Placement Notes (defined below). The total fees paid to the lenders and third-party costs incurred relating to the Financing Transactions were approximately $49.7 million, a portion of which were capitalized as debt issuance costs. Additionally, certain of the unamortized debt issuance costs prior to the Financing Transaction were written-off. The Company recorded a pre-tax expense of approximately $24.6 million (approximately $18.9 million net of tax) relating to the Financing Transactions, $15.0 million of which was included in loss on extinguishment of debt, $2.7 million was included in interest expense, and $6.9 million was included in general and administrative expense in the Company’s consolidated statements of operations during the year ended December 31, 2020.

Global Senior Secured Revolving Credit Facility

The Company has entered into a multi-currency senior secured revolving credit facility agreement (as amended and restated, the “Global Senior Facility”). In previous periods, the Company referred to this facility as the Cabot Credit Facility. As of December 31, 2020, the Global Senior Facility provided for a total committed facility of $1,050.0 million that matures in September 2024 and included the following key provisions:

•Interest at LIBOR (or EURIBOR for any loan drawn in euro) plus 2.50% per annum, with a LIBOR (or EURIBOR) floor of 0.75%;

•A restrictive covenant that limits the LTV Ratio (defined in the Global Senior Facility) to 0.75 in the event that the Global Senior Facility is more than 20% utilized;

•A restrictive covenant that limits the SSRCF Ratio (defined in the Global Senior Facility) to 0.275;

•A restrictive covenant that requires the Company to maintain a Fixed Charge Coverage Ratio (as defined in the Global Senior Facility) of at least 2.0;

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

•Standard events of default which, upon occurrence, may permit the lenders to terminate the Global Senior Facility and declare all amounts outstanding to be immediately due and payable.

The Global Senior Facility is secured by substantially all of the assets of the Company and the guarantors. Pursuant to the terms of an intercreditor agreement entered into with respect to the relative positions of (1) the Global Senior Facility, any super priority hedging liabilities and the Encore Private Placement Notes (collectively, “Super Senior Liabilities”) and (2) the Senior Secured Notes, Super Senior Liabilities that are secured by assets that also secure the Senior Secured Notes will receive priority with respect to any proceeds received upon any enforcement action over any such assets.

As of December 31, 2020, the outstanding borrowings under the Global Senior Facility were $481.0 million. Since the completion of the Financing Transactions, the weighted average interest rate of the Global Senior Facility was 3.25%. The weighted average interest rate of the previous Cabot Credit Facility was 3.30% and 3.52% for the years ended December 31, 2020 and December 31, 2019, respectively. The weighted average interest rate of the previous Encore Revolving Credit Facility was 3.90% and 5.27% for the years ended December 31, 2020 and December 31, 2019, respectively. Available capacity under the Global Senior Facility was $569.0 million as of December 31, 2020.

Encore Revolving Credit Facility and Term Loan Facility

The Company had a revolving credit facility (the “Revolving Credit Facility”) and term loan facility (the “Term Loan Facility,” and together with the Revolving Credit Facility, the “Encore Senior Secured Credit Facilities”) pursuant to a Third Amended and Restated Credit Agreement dated December 20, 2016 (as amended, the “Restated Credit Agreement”) that was previously used to support the Company’s domestic operations. In connection with the Financing Transactions on September 24, 2020, the Company repaid the Encore Senior Secured Credit Facilities and terminated the Restated Credit Agreement.

Encore Private Placement Notes

In August 2017, Encore entered into $325.0 million in senior secured notes with a group of insurance companies (the “Encore Private Placement Notes”). In September 2020, as part of the Financing Transactions, the Company prepaid approximately $103.7 million of the Encore Private Placement Notes and made a $10.4 million make-whole payment to the holders of notes that were prepaid. The make-whole payment was included in loss on extinguishment of debt in the Company’s consolidated statements of operations during the year ended December 31, 2020. As of December 31, 2020, $146.6 million of the Encore Private Placement Notes remained outstanding. The Encore Private Placement Notes bear an annual interest rate of 5.625%, mature in August 2024 and require quarterly principal payments of $9.8 million. The covenants and material terms for the Encore Private Placement Notes are substantially similar to those for the Global Senior Facility.

Senior Secured Notes

The following table provides a summary of the Senior Secured Notes ($ in thousands):


	December 31, 2020		December 31, 2019		Maturity Date	Interest Rate
Cabot 2023 Notes	$	309,034	$	680,118	Oct 1, 2023	7.500	%
Cabot 2024 Floating Rate Notes	—		448,921		Jun 1, 2024	EURIBOR +6.375%
Encore 2025 Notes	426,752		—		Oct 15, 2025	4.875	%
Encore 2026 Notes	409,827		—		Feb 15, 2026	5.375	%
Encore 2028 Floating Rate Notes	506,006		—		Jan 15, 2028	EURIBOR +4.250%
	$	1,651,619	$	1,129,039

In September 2020, as part of the Financing Transactions, Encore issued €350.0 million (approximately $426.8 million based on an exchange rate of $1.00 to €0.82, the exchange rate as of December 31, 2020) in aggregate principal amount of 4.875% Senior Secured Notes due 2025 at an issue price of 98.889% (the “Encore 2025 Notes”). Interest on the Encore 2025 Notes is payable semi-annually, in arrears, on April 15 and October 15 of each year, commencing on April 15, 2021.

In November 2020, Encore issued £300.0 million (approximately $409.8 million based on an exchange rate of $1.00 to £0.73, the exchange rate as of December 31, 2020) in aggregate principal amount of 5.375% Senior Secured Notes due 2026 at an issue price of 100.000% (the “Encore 2026 Notes”). Interest on the Encore 2026 Notes is payable semi-annually, in arrears, on February 15 and August 15 of each year, commencing on February 15, 2021. The Company used the proceeds from this

offering to redeem £286.7 million (approximately $391.7 million based on an exchange rate of $1.00 to £0.73, the exchange rate as of December 31, 2020) of the outstanding £512.9 million (approximately $700.7 million based on an exchange rate of $1.00 to £0.73, the exchange rate as of December 31, 2020) aggregate principal amount of 7.500% Senior Secured Notes due 2023 (the “Cabot 2023 Notes”) at a redemption price of 101.875%, and pay certain transaction fees and expenses incurred in connection with this offering. The Company recognized a loss on extinguishment of debt of approximately $12.8 million (approximately $10.3 million net of tax) associated with this transaction during the year ended December 31, 2020. As of December 31, 2020, £226.2 million (approximately $309.0 million based on an exchange rate of $1.00 to £0.73, the exchange rate as of December 31, 2020) of the Cabot 2023 Notes were outstanding, interest is payable semi-annually, in arrears, on April 1 and October 1 of each year.

In December 2020, Encore issued €415.0 million (approximately $506.0 million based on an exchange rate of $1.00 to €0.82, the exchange rate as of December 31, 2020) in aggregate principal amount of senior secured floating rate notes due 2028 at an issue price of 99.000% (the “Encore 2028 Floating Rate Notes” and together with the Cabot 2023 Notes, Encore 2025 Notes and Encore 2026 Notes, the “Senior Secured Notes”). The Encore 2028 Floating Rate Notes bear interest at a rate equal to the sum of (i) three-month EURIBOR (subject to a 0% floor) plus (ii) 4.250% per annum, reset quarterly. Interest is payable quarterly in arrears on January 15, April 15, July 15 and October 15 of each year, commencing on April 15, 2021. The Company used the proceeds from this offering to redeem the outstanding €400.0 million (approximately $487.7 million based on an exchange rate of $1.00 to €0.82, the exchange rate as of December 31, 2020) aggregate principal amount Senior Secured Floating Rate Notes due 2024 (the “Cabot 2024 Floating Rate Notes”) in full and pay certain transaction fees and expenses incurred in connection with this offering. The Company recognized a loss on extinguishment of debt of approximately $13.1 million (approximately $10.6 million net of tax) associated with this transaction during the year ended December 31, 2020. The Cabot 2024 Floating Rate Notes bore interest at a rate equal to the sum of (i) three-month EURIBOR (subject to a 0% floor) plus (ii) 6.375%, reset quarterly.

The Senior Secured Notes are secured by the same collateral as the Global Senior Facility and the Encore Private Placement Notes. The guarantees provided in respect of the Senior Secured Notes are pari passu with each such guarantee given in respect of the Global Senior Facility and Encore Private Placement Notes. Subject to the intercreditor agreement described above under “Global Senior Secured Revolving Credit Facility,” Super Senior Liabilities that are secured by assets that also secure the Senior Secured Notes will receive priority with respect to any proceeds received upon any enforcement action over any such assets.

Convertible Notes and Exchangeable Notes

The following table provides a summary of the principal balance, maturity date and interest rate for the outstanding convertible and exchangeable senior notes (the “Convertible Notes” or “Exchangeable Notes,” as applicable) ($ in thousands):


	December 31, 2020		December 31, 2019		Maturity Date	Interest Rate
2020 Convertible Notes (1)	$	—	$	89,355	Jul 1, 2020	3.000	%
2021 Convertible Notes	161,000		161,000		Mar 15, 2021	2.875	%
2022 Convertible Notes	150,000		150,000		Mar 15, 2022	3.250	%
2023 Exchangeable Notes	172,500		172,500		Sep 1, 2023	4.500	%
2025 Convertible Notes	100,000		100,000		Oct 1, 2025	3.250	%
	$	583,500	$	672,855

_______________________

(1)The 2020 Convertible Notes matured on July 1, 2020 and the Company repaid the outstanding principal in cash.

The Exchangeable Notes were issued by Encore Capital Europe Finance Limited (“Encore Finance”), a 100% owned finance subsidiary of Encore, and are fully and unconditionally guaranteed by Encore. Unless otherwise indicated in connection with a particular offering of debt securities, Encore will fully and unconditionally guarantee any debt securities issued by Encore Finance. Amounts related to Encore Finance are included in the consolidated financial statements of Encore subsequent to April 30, 2018, the date of incorporation of Encore Finance.

Prior to the close of business on the business day immediately preceding their respective free conversion or exchange date (listed below), holders may convert or exchange their Convertible Notes or Exchangeable Notes under certain circumstances set forth in the applicable indentures. On or after their respective free conversion or exchange dates until the close of business on the second scheduled trading day immediately preceding their respective maturity date, holders may convert or exchange their notes at any time. Certain key terms related to the convertible and exchangeable features as of December 31, 2020 are listed below:


	2021 Convertible Notes		2022 Convertible Notes		2023 Exchangeable Notes		2025 Convertible Notes
Initial conversion or exchange price	$	59.39	$	45.57	$	44.62	$	40.00
Closing stock price at date of issuance	$	47.51	$	35.05	$	36.45	$	32.00
Closing stock price date	Mar 5, 2014		Feb 27, 2017		Jul 20, 2018		Sep 4, 2019
Conversion or exchange rate (shares per $1,000 principal amount)	16.8386		21.9467		22.4090		25.0000
Conversion or exchange date	Sep 15, 2020		Sep 15, 2021		Mar 1, 2023		Jul 1, 2025

Prior to October 29, 2020, in the event of conversion or exchange, holders of the Company’s Convertible Notes or Exchangeable Notes would 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 Company’s intent was to settle conversions and exchanges through combination settlement with a minimum specified dollar amount of $1,000 per $1,000 principal amount of notes (i.e., convertible or exchangeable 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 and subject to certain restrictions contained in each of the indentures governing the Convertible Notes and Exchangeable Notes, for the remainder). As a result, only the conversion or exchange spread was included in the diluted earnings per share calculation, if dilutive. Under such method, the settlement of the conversion or exchange spread had a dilutive effect when, during any quarter, the average share price of the Company’s common stock exceeds the initial conversion or exchange prices listed in the above table.

On October 29, 2020, the Company entered into supplemental indentures for the Convertible Notes and Exchangeable Notes so that in the event of conversion or exchange, the notes are convertible or exchangeable into cash up to the aggregate principal amount of the notes and the excess conversion premium, if any, may be settled in cash or shares of the Company’s common stock at the Company’s election and subject to certain restrictions contained in each of the indentures governing the Convertible Notes and Exchangeable Notes. Only the conversion or exchange spread is included in the diluted earnings per share calculation, if dilutive. There was no dilutive effect relating to our convertible or exchangeable notes during the years ended December 31, 2020, 2019, or 2018.

The debt and equity components, the issuance costs related to the equity component, the stated interest rate, and the effective interest rate for each of the Convertible Notes and Exchangeable Notes at the time of the original offering are listed below (in thousands, except percentages):


	2021 Convertible Notes			2022 Convertible Notes			2023 Exchangeable Notes			2025 Convertible Notes
Debt component	$	143,645		$	137,266		$	157,971		$	91,024
Equity component	$	17,355		$	12,734		$	14,009		$	8,976
Equity issuance cost	$	581		$	398		$	—		$	224
Stated interest rate	2.875		%	3.250		%	4.500		%	3.250		%
Effective interest rate	4.700		%	5.200		%	6.500		%	5.000		%

The balances of the liability and equity components of all the Convertible Notes and Exchangeable Notes outstanding were as follows (in thousands):


	December 31, 2020		December 31, 2019
Liability component—principal amount	$	583,500	$	672,855
Unamortized debt discount	(19,364)		(30,308)
Liability component—net carrying amount	$	564,136	$	642,547
Equity component	$	53,074	$	83,127

The debt discount is being amortized into interest expense over the remaining life of the Convertible Notes and Exchangeable Notes using the effective interest rates. Interest expense related to the Convertible Notes and Exchangeable Notes was as follows during the periods presented (in thousands):


	Year ended December 31,
	2020		2019		2018
Interest expense—stated coupon rate	$	21,857	$	23,845	$	17,518
Interest expense—amortization of debt discount	10,945		12,780		10,888
Interest expense—Convertible Notes and Exchangeable Notes	$	32,802	$	36,625	$	28,406

Hedge Transactions

In order to reduce the risk related to the potential dilution and/or the potential cash payments the Company may be required to make in the event that the market price of the Company’s common stock becomes greater than the conversion or exchange prices of the Convertible Notes and the Exchangeable Notes, the Company maintains a hedge program that increases the effective conversion or exchange price for the 2021 Convertible Notes and the Exchangeable Notes. All of the hedge instruments related to the Convertible Notes and the Exchangeable Notes have been determined to be indexed to the Company’s own stock and meet the criteria for equity classification. The Company recorded the cost of the hedge instruments as a reduction in additional paid-in capital, and does not recognize subsequent changes in fair value of these financial instruments in its consolidated financial statements. The Company did not hedge the 2022 Convertible Notes or the 2025 Convertible Notes.

The details of the hedge program are listed below (in thousands, except conversion or exchange price):


	2021 Convertible Notes		2023 Exchangeable Notes
Cost of the hedge transaction(s)	$	19,545	$	17,785
Initial conversion or exchange price	$	59.39	$	44.62
Effective conversion or exchange price	$	83.14	$	62.48

Cabot Securitisation Senior Facility

Cabot Securitisation UK Ltd (“Cabot Securitisation”), an indirect subsidiary of Encore, has a senior facility for a committed amount of £350.0 million (as amended, the “Cabot Securitisation Senior Facility”). The Cabot Securitisation Senior Facility matures in March 2025. Funds drawn under the Cabot Securitisation Senior Facility bear interest at a rate per annum equal to SONIA plus a margin of 3.06% plus, for periods after March 15, 2023, a step-up margin ranging from zero to 1.00%.

As of December 31, 2020, the outstanding borrowings under the Cabot Securitisation Senior Facility were £350.0 million (approximately $478.1 million based on an exchange rate of $1.00 to £0.73, the exchange rate as of December 31, 2020). The obligations of Cabot Securitisation under the Cabot Securitisation Senior Facility are secured by first ranking security interests over all of Cabot Securitisation’s property, assets and rights (including receivables purchased from Cabot Financial UK from time to time), the book value of which was approximately £397.7 million (approximately $543.3 million based on an exchange rate of $1.00 to £0.73, the exchange rate as of December 31, 2020) as of December 31, 2020. The weighted average interest rate was 3.23% and 3.74% for the years ended December 31, 2020 and 2019, respectively.

Cabot Securitisation and Cabot Securitisation II are securitized financing vehicles and are VIEs for consolidation purposes. Refer to “Note 8: Variable Interest Entities” for further details.

Finance Lease Liabilities

The Company has finance lease liabilities primarily for computer equipment. As of December 31, 2020, the Company’s finance lease liabilities were approximately $8.3 million. Refer to “Note 11: Leases” for further details.

Maturity Schedule

The aggregate amounts of the Company’s borrowings, maturing in each of the next five years and thereafter are as follows (in thousands):


2021	$	211,499
2022	198,573
2023	526,502
2024	511,963
2025	1,008,727
Thereafter	916,229
Total	$	3,373,493

Variable Interest Entities	12 Months Ended
Variable Interest Entities	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Variable Interest Entities	Note 8: Variable Interest Entities 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 expected losses, or the right to receive 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 Company consolidates VIEs when it is the primary beneficiary. As of December 31, 2020, the Company’s VIEs include certain securitized financing vehicles and other immaterial special purpose entities that were created to purchase receivable portfolios in certain geographies. The Company is the primary beneficiary of these VIEs. The Company has the power to direct the activities of the VIEs which includes but is not limited to the ability to exercise discretion in the servicing of the financial assets. The Company evaluates its relationships with its VIEs on an ongoing basis to ensure that it continues to be the primary beneficiary. Most assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims against the Company’s general assets. Conversely, liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets; rather, they represent claims against the specific assets of the VIE.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Note 9: Stock-Based Compensation

In April 2017, Encore’s Board of Directors (the “Board”) approved the Encore Capital Group, Inc. 2017 Incentive Award Plan (the “2017 Plan”), which was then approved by the Company’s stockholders on June 15, 2017. The 2017 Plan superseded the Company’s 2013 Incentive Compensation Plan (as amended, the “2013 Plan”), which had previously superseded the Company’s 2005 Stock Incentive Plan (“2005 Plan”). Board members, employees, and consultants of Encore and its subsidiaries and affiliates are eligible to receive awards under the 2017 Plan. Subject to certain adjustments, the Company may grant awards for an aggregate of 5,713,571 shares of the Company’s common stock under the 2017 Plan. The aggregate number of shares available for issuance under the 2017 Plan will be reduced by 2.12 shares for each share delivered in settlement of any full value award and by one share for each share delivered in settlement of any stock option or stock appreciation right. If an award under the 2017 Plan or the 2013 Plan expires, lapses or is terminated, exchanged for cash, surrendered, repurchased, canceled without having been fully exercised or forfeited, the unused shares covered by such award will again become or again be available for award grants under the 2017 Plan. Shares available under the 2017 Plan will be increased by 2.12 shares for each share subject to a full value award and by one share for each share subject to a stock option or a stock appreciation right, in each case, that become or again be available for issuance pursuant to the foregoing share counting provisions.

The 2017 Plan provides for the grant of incentive stock options, nonqualified stock options, restricted stock, restricted stock units, dividend equivalent rights, stock appreciation rights, cash awards, performance-based awards and any other types of awards not inconsistent with the 2017 Plan.

Total stock-based compensation expense during the years ended December 31, 2020, 2019, and 2018 was $16.6 million, $12.6 million, and $13.0 million, respectively. The actual tax benefit from stock-based compensation arrangements totaled $2.5 million, $1.2 million, and $1.3 million for the years ended December 31, 2020, 2019, and 2018, respectively.

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

Stock Options

Under the 2005 Plan, option awards were 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. Other than the Performance Options discussed below, no options have been awarded under the 2013 Plan or 2017 Plan.

There were no options granted during the years ended December 31, 2020, 2019, or 2018. As of December 31, 2020, all outstanding stock options have been fully vested and all related compensation expense has been fully recognized.

A summary of the Company’s stock option activity as of December 31, 2020, and changes during the year then ended, are presented below:


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2019	9,166	$	22.17




Outstanding as of December 31, 2020	9,166	$	22.17	1.26	$	154
Exercisable as of December 31, 2020	9,166	$	22.17	1.26	$	154

The total intrinsic value of options exercised during the years ended December 31, 2019 and 2018 was $1.0 million and $0.4 million, respectively. Cash received from option exercise under all share-based payment arrangements during the years ended December 31, 2019 and 2018, was $0.3 million and $0.7 million, respectively. There were no options exercised during the year ended December 31, 2020.

Performance Stock Options

Under the 2017 Plan and the 2013 Plan, the Company granted performance stock options, with an exercise price equal to the closing price of the Company’s stock at the date of issuance, that vest in equal annual installments over a three year service period but only if, within four years from the date of grant, the 20 trading day average of the closing price of the Company’s stock (subject to dividend-related adjustments) exceeds a target equal to a 25% increase from the closing price on the date of grant. These performance options have a seven-year contractual life.

A summary of the Company’s performance stock option activity as of December 31, 2020, and changes during the year then ended, are presented below:


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2019	164,013	$	31.73





Outstanding as of December 31, 2020	164,013	$	31.73	3.21	$	1,206
Vested as of December 31, 2020	150,697	$	30.95	3.19	$	1,206
Exercisable as of December 31, 2020	150,697	$	30.95	3.19	$	1,206

As of December 31, 2020, all related compensation expense has been fully recognized. No performance stock options were granted during the years ended December 31, 2020, 2019, and 2018.

Non-Vested Shares

The Company’s 2017 Plan (and previously, the 2013 Plan and 2005 Plan), permits restricted stock units, restricted stock awards, performance stock units, and performance stock awards (collectively “stock awards”). The fair value of non-vested shares with a service condition and/or a performance condition that affect vesting is equal to the closing sale price of the Company’s common stock on the grant date. Compensation expense is recognized only for the awards that ultimately vest. The Company has certain share awards that include market conditions that affect vesting. These shares vest based on the Company’s three-year relative total stockholder return compared to the other companies in the S&P SmallCap 600 Financial Sector Index as of the date of grant. The fair value of these shares is estimated using a lattice model. For the majority of non-vested shares,

shares are issued on the vesting dates net of the number of shares needed to satisfy minimal statutory tax withholding requirements. The tax obligations are then paid by the Company on behalf of the employees.

A summary of the Company’s stock award activities as of December 31, 2020, and changes during the year then ended, is presented below:


	Non-Vested Shares (1)	Weighted Average Grant Date Fair Value
Non-vested as of December 31, 2019	922,530	$	33.11
Awarded	443,101	$	38.51
Vested	(389,484)	$	35.45
Cancelled	(33,629)	$	39.68
Non-vested as of December 31, 2020	942,518	$	35.29

________________________

(1)Certain of the Company’s stock awards have a vesting matrix under which the stock awards can vest at a maximum level that is 200% of the shares that would vest for achieving the performance goals at target. The number of shares presented is based on achieving the performance goals at target levels as defined in the stock award agreements. As of December 31, 2020 and 2019, the maximum number of non-vested performance shares that could vest under the provisions of the agreements was 1,255,445 and 1,171,334, respectively.

Unrecognized compensation expense related to non-vested shares as of December 31, 2020 was $15.4 million. The weighted-average remaining expense period, based on the unamortized value of these outstanding non-vested shares, was approximately 1.2 years. The fair value of restricted stock units and restricted stock awards vested for the years ended December 31, 2020, 2019, and 2018 was $14.5 million, $8.9 million, and $8.8 million, respectively. The weighted average grant date fair value for stock awards granted during the years ended December 31, 2020, 2019, and 2018 was $38.51, $32.42, and $38.52, respectively.

Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Note 10: Income Taxes

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


	Year Ended December 31,
	2020		2019		2018
US	$	259,132	$	144,495	$	61,972
Foreign	23,766		56,747		94,516
Total income before provision for income taxes	$	282,898	$	201,242	$	156,488

The provision for income tax on earnings from continuing operations consisted of the following (in thousands):


	Year Ended December 31,
	2020		2019		2018
Current expense (benefit):
Federal	$	43,185	$	(2,917)	$	23,254
State	8,528		(6,464)		2,983
Foreign	10,112		21,008		29,532
	61,825		11,627		55,769
Deferred expense (benefit):
Federal	15,851		27,640		(10,447)
State	2,192		5,535		(2,169)
Foreign	(9,494)		(12,469)		3,599
	8,549		20,706		(9,017)
Provision for income taxes	$	70,374	$	32,333	$	46,752

The reconciliation of federal statutory income tax rate to our effective tax rate was as follows:


	Year Ended December 31,
	2020		2019		2018
Federal provision	21.0	%	21.0	%	21.0	%
State provision	3.2	%	0.2	%	0.1	%
Foreign rate differential(1)	(0.5)	%	(2.2)	%	(11.7)	%

Change in valuation allowance(2)	0.9	%	(0.5)	%	17.7	%
IRS settlement(3)	—	%	(2.4)	%	—	%
Tax effect of CFPB settlement fees(4)	1.1	%	—	%	—	%
Other	(0.8)	%	—	%	2.8	%
Effective rate	24.9	%	16.1	%	29.9	%

________________________

(1)Relates primarily to lower tax rates on income or loss attributable to international operations.

(2)In 2018, valuation allowance net increase recorded as a result of certain foreign subsidiaries' cumulative operating losses for tax purposes.

(3)In 2019, relates to tax benefit resulting from tax accounting method change.

(4)Non-deductible expense for tax purposes. Refer to “Note 12: Commitments and Contingencies” for details of the CFPB settlement.

The Company’s subsidiary in Costa Rica is operating under a 100% tax holiday through December 31, 2026. The impact of the tax holiday in Costa Rica for the year ended December 31, 2020 was immaterial.

The Company has not provided for applicable income or withholding taxes on the undistributed earnings from continuing operations for certain of its subsidiaries operating outside of the United States. Undistributed net income of these subsidiaries as of December 31, 2020, were approximately $71.3 million. Such undistributed earnings are considered permanently reinvested. The Company does not provide deferred taxes on translation adjustments of unremitted earnings under the indefinite reinvestment exemption. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practical due to the complexities of a hypothetical calculation. Subsidiaries operating outside of the United States for which the Company does not consider under the indefinite reinvestment exemption have no material undistributed earnings or outside basis differences.

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the carrying amounts for income tax purposes. Significant components of the Company's deferred tax assets and liabilities were as follows (in thousands):


	December 31, 2020		December 31, 2019
Deferred tax assets:
Net operating losses	$	43,307	$	36,236
Operating lease liabilities	12,583		18,023
Accrued expenses	12,862		10,050
Difference in basis of bond and loan costs	1,267		4,194
Stock-based compensation	2,787		2,882
Other	5,596		1,822
Total deferred tax assets	78,402		73,207
Valuation allowance	(38,463)		(36,422)
Total deferred tax assets net of valuation allowance	39,939		36,785
Deferred tax liabilities:
Deferred court cost	—		(23,682)
Difference in basis of receivable portfolio	(20,806)		(57)
Right-of-use asset	(8,525)		(14,422)
Difference in basis of depreciable and amortizable assets	(13,863)		(3,680)
Prepaid expenses	(793)		(628)
Other	(1,682)		(4,559)
Total deferred tax liabilities	(45,669)		(47,028)
Net deferred tax liability(1)	$	(5,730)	$	(10,243)

________________________

(1)The Company operates in multiple jurisdictions. Deferred tax assets and liabilities are netted for each tax-paying component of the Company within a particular tax jurisdiction and presented as a single amount in the statement of financial condition.

As of December 31, 2020, certain of the Company’s foreign subsidiaries have net operating loss carry forwards of approximately $155.3 million, which will begin to expire in 2024. Certain of the Company’s domestic subsidiaries have state net operating losses which the Company expects to fully utilize upon filing the 2020 income tax returns.

Valuation allowances are recorded against deferred tax assets, including certain net operating losses recorded as deferred tax assets, if the Company believes that it is more likely than not that some or all of the deferred tax assets will not be realized. As of December 31, 2020, valuation allowances increased to $38.5 million, as compared to $36.4 million as of December 31, 2019. The increase was primarily related to current period losses at certain foreign entities with cumulative operating losses during the period ended December 31, 2020.

A reconciliation of the beginning and ending amounts of unrecognized tax benefit is as follows (in thousands):


	Amount









Balance as of December 31, 2017	$	20,020

Increases related to prior year tax positions	256
Increases related to current year tax positions	1,958
Decrease related to expiration of statute of limitations	(3,221)
Decreases related to settlements with taxing authorities	(461)
Balance as of December 31, 2018	18,552
Decreases related to prior year tax positions	(10,673)
Increases related to current year tax positions	4,442
Decrease related to expiration of statute of limitations	(2,493)
Decreases related to settlements with taxing authorities	(1,920)
Balance as of December 31, 2019	7,908
Decrease related to prior year tax positions	(608)
Increases related to prior year tax positions	6
Increases related to current year tax positions	574
Decrease related to expiration of statute of limitations	(827)
Decreases related to settlements with taxing authorities	(272)
Balance as of December 31, 2020	$	6,781

The Company had gross unrecognized tax benefits, inclusive of penalties and interest, of $6.9 million, $8.2 million and $19.9 million as of December 31, 2020, 2019, and 2018 respectively. As of December 31, 2020, 2019 and 2018, there was $6.5 million, $7.6 million and $13.0 million, respectively, of unrecognized tax benefit that if recognized, would result in a net tax benefit. During the year ended December 31, 2020, the decrease in the Company’s gross unrecognized tax benefit was primarily related to the expiration of state statute of limitations. During the year ended December 31, 2019, the decrease in the Company's gross unrecognized tax benefit was primarily related to decreases in prior year tax positions from exam resolutions. During the year ended December 31, 2018, the decrease in the Company’s gross unrecognized tax benefit was primarily related to expiration of state statute of limitations.

The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, it is reasonably possible that certain changes may occur within the next 12 months, which could significantly increase or decrease the balance of the Company’s gross unrecognized tax benefits.

The Company recognizes interest and penalties related to unrecognized tax benefits as a component of tax expense. The Company recognized expense of $0.2 million, benefit of $2.7 million and expense of $0.6 million in interest and penalties during the years ended December 31, 2020, 2019 and 2018, respectively. Interest and penalties accrued as of December 31, 2020 and 2019 were $0.2 million and $0.3 million, respectively.

The Company files federal, state and non-U.S. income tax returns in jurisdictions with varying statutes of limitations. The Company is no longer subject to federal tax examinations for years prior to 2018. For U.S. state tax returns, the Company is generally not subject to tax examinations prior to 2013. The Company is subject to the examination of its income tax returns by various taxing authorities, and the timing of the resolution of income tax examinations cannot be predicted with certainty. The Company’s management regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of the Company’s provision for income taxes. If any issues addressed in the Company’s tax examinations are resolved in a manner not consistent with management's expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs.

- Definition

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.

+ References + Details

Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

Note 11: Leases

The majority of the Company’s leases are for corporate offices, various facilities, and information technology equipment. The Company elected not to apply the recognition requirements to short-term leases and not to separate non-lease components from lease components.

The Company recognizes operating lease right-of-use (“ROU”) assets and operating lease liabilities in the consolidated statements of financial condition. ROU assets represent the Company’s right to use an underlying asset during the lease term

and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the net present value of fixed lease payments over the lease term. The Company’s lease term includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option. ROU assets also include any advance lease payments made and are net of any lease incentives. As most of the Company’s operating leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would expect to pay to borrow over a similar term, and on a collateralized basis, an amount equal to the lease payments in a similar economic environment.

The components of lease expense were as follows during the periods presented (in thousands):


	Year Ended December 31,
	2020		2019
Operating lease costs(1)	$	16,331	$	19,450
Finance lease costs
Amortization of ROU assets	3,149		1,825
Interest on lease liabilities	420		563
Total lease costs	$	19,900	$	21,838

________________________

(1)Operating lease expenses are included in general and administrative expenses in the Company’s consolidated statements of operations. Costs include short-term and variable lease components which were not material for the periods presented.

The following table provides supplemental consolidated statement of financial condition information related to leases as of the dates presented (in thousands):


	Classification	December 31, 2020		December 31, 2019
Assets
Operating lease ROU assets	Other assets	$	72,164	$	75,254
Finance lease ROU assets	Property and equipment, net	12,410		9,133
Total lease ROU assets		$	84,574	$	84,387

Liabilities
Operating lease liabilities	Other liabilities	$	90,659	$	93,847
Finance lease liabilities	Borrowings	8,288		8,121
Total lease liabilities		$	98,947	$	101,968

Supplemental lease information is summarized below (in thousands, except rate and lease term):


	Year Ended December 31,
	2020		2019
ROU assets obtained in exchange for new operating lease obligations(1)	$	8,990	$	123,477
ROU assets obtained in exchange for new finance lease obligations	3,276		5,299
Cash paid for amounts included in the measurement of lease liabilities
Operating leases - operating cash flows	17,396		14,874
Finance leases - operating cash flows	419		295
Finance leases - financing cash flows	3,114		1,898

________________________

(1)During the year ended December 31, 2019, the amount includes $89.1 million for operating leases existing as of January 1, 2019.


	December 31, 2020		December 31, 2019
Weighted-average remaining lease term (in years)
Operating leases	7.1		8.1
Finance leases	2.5		3.1
Weighted-average discount rate
Operating leases(1)	5.0	%	5.3	%
Finance leases	4.6	%	4.7	%

________________________

(1)Upon adoption of the new lease standard, discount rates used for existing operating leases were established at January 1, 2019.

Maturities of lease liabilities under non-cancelable leases as of December 31, 2020 are summarized as follows (in thousands):


	Finance Leases		Operating Leases		Total
2021	$	3,674	$	19,440	$	23,114
2022	3,410		15,872		19,282
2023	1,467		14,311		15,778
2024	241		14,474		14,715
2025	—		11,612		11,612
Thereafter	—		37,776		37,776
Total undiscounted lease payments	8,792		113,485		122,277
Less: imputed interest	(504)		(22,826)		(23,330)
Total lease liabilities	$	8,288	$	90,659	$	98,947

Leases

Note 11: Leases

The components of lease expense were as follows during the periods presented (in thousands):


	Year Ended December 31,
	2020		2019
Operating lease costs(1)	$	16,331	$	19,450
Finance lease costs
Amortization of ROU assets	3,149		1,825
Interest on lease liabilities	420		563
Total lease costs	$	19,900	$	21,838

________________________

The following table provides supplemental consolidated statement of financial condition information related to leases as of the dates presented (in thousands):


	Classification	December 31, 2020		December 31, 2019
Assets
Operating lease ROU assets	Other assets	$	72,164	$	75,254
Finance lease ROU assets	Property and equipment, net	12,410		9,133
Total lease ROU assets		$	84,574	$	84,387

Liabilities
Operating lease liabilities	Other liabilities	$	90,659	$	93,847
Finance lease liabilities	Borrowings	8,288		8,121
Total lease liabilities		$	98,947	$	101,968

Supplemental lease information is summarized below (in thousands, except rate and lease term):


	Year Ended December 31,
	2020		2019
ROU assets obtained in exchange for new operating lease obligations(1)	$	8,990	$	123,477
ROU assets obtained in exchange for new finance lease obligations	3,276		5,299
Cash paid for amounts included in the measurement of lease liabilities
Operating leases - operating cash flows	17,396		14,874
Finance leases - operating cash flows	419		295
Finance leases - financing cash flows	3,114		1,898

________________________

(1)During the year ended December 31, 2019, the amount includes $89.1 million for operating leases existing as of January 1, 2019.


	December 31, 2020		December 31, 2019
Weighted-average remaining lease term (in years)
Operating leases	7.1		8.1
Finance leases	2.5		3.1
Weighted-average discount rate
Operating leases(1)	5.0	%	5.3	%
Finance leases	4.6	%	4.7	%

________________________

(1)Upon adoption of the new lease standard, discount rates used for existing operating leases were established at January 1, 2019.

Maturities of lease liabilities under non-cancelable leases as of December 31, 2020 are summarized as follows (in thousands):


	Finance Leases		Operating Leases		Total
2021	$	3,674	$	19,440	$	23,114
2022	3,410		15,872		19,282
2023	1,467		14,311		15,778
2024	241		14,474		14,715
2025	—		11,612		11,612
Thereafter	—		37,776		37,776
Total undiscounted lease payments	8,792		113,485		122,277
Less: imputed interest	(504)		(22,826)		(23,330)
Total lease liabilities	$	8,288	$	90,659	$	98,947

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 12: Commitments and Contingencies Litigation and Regulatory 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, is 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 investigated or 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 or unsupported 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 could involve potential compensatory or punitive damage claims, fines, sanctions, injunctive relief, or changes in business practices. Many continue on for some length of time and involve substantial investigation, litigation, negotiation, and other expense and effort before a result is achieved, and during the process the Company often cannot determine the substance or timing of any eventual outcome. In September 2015, the Company entered into a consent order (the “2015 Consent Order”) with the Consumer Financial Protection Bureau (the “CFPB”) in which the Company settled allegations arising from its practices between 2011 and 2015. On September 8, 2020, a suit captioned Bureau of Consumer Financial Protection v. Encore Capital Group, Inc. et al. was filed in the United States District Court for the Southern District of California. In the suit, the CFPB alleged that the Company did not perfectly adhere to certain operational provisions of the 2015 Consent Order, leading to alleged violations of federal consumer financial law. On October 15, 2020, the parties entered into a stipulated judgment (“Stipulated Judgment”) to resolve the lawsuit. The Stipulated Judgment includes obligations on the Company to, among other things: (1) continue to follow a narrow subset of the operational requirements contained in the 2015 Consent Order, all of which have long been part of the Company’s routine practices; (2) pay a $15.0 million civil monetary penalty; and (3) provide redress of approximately $9,000 to 14 affected consumers, which is in addition to approximately $70,000 of redress that the Company had previously voluntarily provided. Under the Stipulated Judgment, the Company neither admits nor denies the allegations in the CFPB’s suit. In connection with the Stipulated Judgment the CFPB has formally terminated the 2015 Consent Order. As a result of the Stipulated Judgment the Company recorded an after-tax charge of $15.0 million, which is included in the general and administration expenses in its consolidated statements of operations for the year ended December 31, 2020 . Additionally, we are subject to ancillary state Attorney General investigations related to similar debt collection practices. In 2018, we entered into settlement agreements with the Attorneys General of 42 U.S. states and the District of Columbia in connection with our debt collection and litigation practices. The Company has discussed with additional state attorneys general potential resolution of these investigations, which could include penalties, restitution, and/or the adoption of new operational requirements. If the Company is unable to resolve its differences with the state attorneys general, it is possible that they may file claims against the Company. 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. 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 regulatory matters and revises its estimates when additional information becomes available. The Company’s legal costs are recorded to expense as incurred. As of December 31, 2020, the Company has no material reserves for legal matters. Purchase Commitments In the normal course of business, the Company enters into forward flow purchase agreements. A forward flow purchase agreement is a commitment to purchase receivables over a duration that is typically three to twelve months, but can be longer, generally with a specifically defined volume range, frequency, and pricing. Typically, these forward flow contracts have provisions that allow for early termination or price re-negotiation should the underlying quality of the portfolio deteriorate over time or if any particular month’s delivery is materially different than the original portfolio used to price the forward flow contract. Certain of these forward flow purchase agreements may also have termination clauses, whereby the agreements can be canceled by either party upon providing a certain specified amount of notice. As of December 31, 2020, the Company had entered into forward flow purchase agreements for the purchase of nonperforming loans with an estimated minimum aggregate purchase price of approximately $157.4 million. We expect actual purchases under these forward flow purchase agreements to be significantly greater than the estimated minimum aggregate purchase price. Employee Savings and Retirement Plan The Company has a 401(k) Savings Plan that qualifies as deferred salary arrangements under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, matching contributions are based upon the amount of the employees’ contributions subject to certain limitations. The Company recognized expense of approximately $2.9 million, $2.8 million, and $2.5 million for the years ended December 31, 2020, 2019, and 2018, respectively. 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, 2020, has no liabilities recorded for these agreements.

Segment Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment and Geographic Information

Note 13: Segment and Geographic Information

The Company conducts business through several operating segments. 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 Company determined its operating segments meet the aggregation criteria, and therefore, it has one reportable segment, portfolio purchasing and recovery, based on similarities among the operating units including economic characteristics, the nature of the services, the nature of the production process, customer types for their services, the methods used to provide their services and the nature of the regulatory environment.

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


	Year Ended December 31,
	2020		2019		2018
Total revenues(1):
United States	$	992,916	$	817,693	$	709,493
International
Europe(2)	490,385		520,433		556,265
Other geographies	18,099		59,555		96,272
Total	$	1,501,400	$	1,397,681	$	1,362,030

________________________

(1)Total revenues for periods in 2019 and 2018 are adjusted by net allowances. Total revenues are attributed to countries based on consumer location.

(2)Based on the financial information that is used to produce the general-purpose financial statements, providing further geographic information is impracticable.


	December 31, 2020		December 31, 2019
Long-lived assets(1):
United States	$	83,523	$	84,118
International
United Kingdom	37,225		28,602
Other foreign countries	6,549		7,331
	43,774		35,933
Total	$	127,297	$	120,051

________________________

(1)Long-lived assets consist of property and equipment, net and finance leases.

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

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+ Details

Goodwill and Identifiable Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Identifiable Intangible Assets

Note 14: Goodwill and Identifiable Intangible Assets

The Company’s goodwill is attributable to reporting units included in its portfolio purchasing and recovery segment. Goodwill is tested for impairment at the reporting unit level annually and in interim periods if certain events occur that indicate that the fair value of a reporting unit may be below its carrying value. Determining the number of reporting units and the fair value of a reporting unit requires the Company to make judgments and involves the use of significant estimates and assumptions. The Company performs its annual goodwill impairment assessment as of October 1. As of October 1, 2020, the Company had two reporting units, MCM and Cabot, that carried goodwill.

The Company first assesses qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. The qualitative factors include economic environment, business climate, market capitalization, operating performance, competition, and other factors. The Company may proceed directly to the quantitative test without performing the qualitative test. For the goodwill impairment tests performed as of October 1, 2020, the Company updated its consideration of the current and expected future economic and market conditions surrounding the COVID-19 pandemic and its impact on each of the reporting units. The Company performed qualitative analysis for the MCM reporting unit and proceeded directly to the quantitative test for its Cabot reporting unit.

If goodwill is quantitatively assessed for impairment and a reporting unit’s carrying value exceeds its fair value, the difference is recorded as an impairment. The Company applies various valuation techniques to measure the fair value of each reporting unit, including the income approach and the market approach. For goodwill impairment analyses, the Company uses the income approach in determining fair value, specifically the discounted cash flow method, or DCF. In applying the DCF method, an identified level of future cash flow is estimated. Annual estimated cash flows and a terminal value are then discounted to their present value at an appropriate discount rate to obtain an indication of fair value. The discount rate utilized reflects estimates of required rates of return for investments that are seen as similar to an investment in the reporting unit. DCF analyses are based on management’s long-term financial projections and require significant judgments. Therefore, for the Company’s reporting units where the Company has access to reliable market participant data, the market approach is conducted in addition to the income approach in determining the fair value. The Company uses a guideline company method under the market approach to estimate the fair value of equity and the market value of invested capital (“MVIC”). The guideline company approach relies on estimated remaining collections data or the earnings before interest, tax, depreciation and amortization

(“EBITDA”) for each of the selected guideline companies, which enables a direct comparison between the reporting unit and the selected peer group. The Company believes that the current methodology used in determining the fair value at its reporting units represent its best estimates. In addition, the Company compares the aggregate fair value of the reporting units to its overall market capitalization.

Based on the annual goodwill impairment tests performed at October 1, 2020, no goodwill impairment existed at these two reporting units.

On August 15, 2019, the Company completed the sale of Baycorp. The Company concluded that the fair value of Baycorp immediately prior to the sale was less than its recorded book value and, as a result, the entire goodwill balance carried at the Baycorp reporting unit of $10.7 million was impaired. The goodwill impairment is included in operating expenses in the Company’s consolidated statements of operations during the year ended December 31, 2019.

Management continues to evaluate and monitor all key factors impacting the carrying value of the Company’s recorded goodwill and long-lived assets. Further adverse changes in the Company’s actual or expected operating results, market capitalization, business climate, economic factors or other negative events that may be outside the control of management could result in a material non-cash impairment charge in the future.

The Company’s goodwill is attributable to reporting units included in its portfolio purchasing and recovery segment. The following table summarizes the activity in the Company’s goodwill balance during the periods presented (in thousands):


	Year Ended December 31,
	2020		2019
Balance as of beginning of period:	$	884,185	$	868,126



Goodwill impairment	—		(10,718)
Effect of foreign currency translation	22,777		26,777
Balance as of end of period:	$	906,962	$	884,185

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


	As of December 31, 2020						As of December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	66,796	$	(22,714)	$	44,082	$	67,897	$	(18,191)	$	49,706
Developed technologies	5,048		(4,760)		288		4,734		(4,124)		610
Trade name and other	6,644		(6,002)		642		6,299		(5,244)		1,055

Total intangible assets	$	78,488	$	(33,476)	$	45,012	$	78,930	$	(27,559)	$	51,371

The weighted-average useful lives of intangible assets at the time of acquisition were as follows (in years):


			Weighted-Average Useful Lives
Customer relationships			10
Developed technologies			5
Trade name and other			7

The amortization expense for intangible assets subject to amortization was $8.0 million, $7.7 million, and $11.7 million during the years ended December 31, 2020, 2019, and 2018, respectively. Estimated future amortization expense related to finite-lived intangible assets as of December 31, 2020 is as follows (in thousands):


2021	$	6,746
2022	6,720
2023	6,361
2024	6,274
2025	6,226
Thereafter	12,685
Total	$	45,012

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

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Basis of Consolidation

Translation of Foreign Currencies

Reclassifications

Change in Accounting Principle and Recent Accounting Pronouncements

Change in Accounting Principle


	Balance as of December 31, 2019		Adjustment		Opening Balance as of January 1, 2020
Assets
Investment in receivable portfolios, net	$	3,283,984	$	44,166	$	3,328,150
Deferred court costs, net	100,172		(100,172)		—
Liabilities
Other liabilities (for deferred tax liabilities)	147,436		(11,768)		135,668
Equity
Accumulated earnings	888,058		(44,238)		843,820

Recent Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Effective

Use of Estimates

Cash and Cash Equivalents

Restricted Cash

Included in cash and cash equivalents is cash collected on behalf of and due to third-party clients. A corresponding balance is included in accounts payable and accrued liabilities.

Investment in Receivable Portfolios

Current Accounting Policy

As a result of the adoption of CECL, the Company revised its accounting policy for investment in receivable portfolios effective January 1, 2020:

Accounting Policy Prior to January 1, 2020

See “Note 4: Investment in Receivable Portfolios, Net” for further discussion of investment in receivable portfolios.

Transfers of Financial Assets

Servicing Revenue

Goodwill and Other Intangible Assets

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

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

Derivative Instruments and Hedging Activities

Concentration of Supply Risk

Earnings Per Share

Fair Value Measurements

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

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

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

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Schedule of Changes in Accounting Principles

The following table summarizes the cumulative effects of adopting the CECL guidance on the Company’s consolidated statements of financial condition as of January 1, 2020 (in thousands):


	Balance as of December 31, 2019		Adjustment		Opening Balance as of January 1, 2020
Assets
Investment in receivable portfolios, net	$	3,283,984	$	44,166	$	3,328,150
Deferred court costs, net	100,172		(100,172)		—
Liabilities
Other liabilities (for deferred tax liabilities)	147,436		(11,768)		135,668
Equity
Accumulated earnings	888,058		(44,238)		843,820

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 for the periods presented (in thousands, except per share amounts):


	Year Ended December 31,
	2020		2019		2018



Net income attributable to Encore Capital Group, Inc.	$	211,848	$	167,869	$	115,886

Total weighted-average basic shares outstanding	31,427		31,210		28,313
Dilutive effect of stock-based awards	283		264		259

Total weighted-average dilutive shares outstanding	31,710		31,474		28,572




Basic earnings per share	$	6.74	$	5.38	$	4.09



Diluted earnings per share	$	6.68	$	5.33	$	4.06

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020
	Level 1		Level 2		Level 3		Total
Assets

Cross-currency swap agreements	$	—	$	11,578	$	—	$	11,578
Interest rate cap contracts	—		659		—		659
Liabilities

Interest rate swap agreements	—		(5,232)		—		(5,232)
Contingent consideration	—		—		(2,957)		(2,957)


	Fair Value Measurements as of December 31, 2019
	Level 1		Level 2		Level 3		Total
Assets

Foreign currency exchange contracts	$	—	$	1,473	$	—	$	1,473
Interest rate cap contracts	—		2,460		—		2,460
Liabilities
Interest rate swap agreements	—		(9,116)		—		(9,116)
Contingent consideration	—		—		(66)		(66)

Schedule of Roll Forward of the Fair Value of Contingent Consideration

The following table provides a roll-forward of the fair value of contingent consideration for the years ended December 31, 2020, 2019 and 2018 (in thousands):


	Amount
Balance as of December 31, 2017	$	10,612
Issuance of contingent consideration	1,728
Change in fair value of contingent consideration	(5,664)
Payment of contingent consideration	(271)
Effect of foreign currency translation	(207)
Balance as of December 31, 2018	6,198
Change in fair value of contingent consideration	(2,300)
Payment of contingent consideration	(3,686)
Effect of foreign currency translation	(146)
Balance as of December 31, 2019	66
Issuance of contingent consideration	2,848
Payment of contingent consideration	(88)
Effect of foreign currency translation	131
Balance as of December 31, 2020	$	2,957

Schedule of Change in Redeemable Noncontrolling Interests

The components of the change in the redeemable noncontrolling interest for the years ended December 31, 2018 are presented in the following table (in thousands):


	Amount











Balance as of December 31, 2017	$	151,978

Redemption of redeemable noncontrolling interest	(138,835)
Deconsolidation upon sale of redeemable noncontrolling interest	5,535
Net loss attributable to redeemable noncontrolling interest	(4,791)
Adjustment of the redeemable noncontrolling interest to fair value	(7,419)
Effect of foreign currency translation attributable to redeemable noncontrolling interest	(6,468)
Balance as of December 31, 2018	$	—

Schedule of Financial Instruments Not Required to Be Carried at Fair Value

The carrying amounts in the following table are recorded in the consolidated statements of financial condition as of December 31, 2020 and December 31, 2019 (in thousands):


	December 31, 2020				December 31, 2019
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial Assets
Investment in receivable portfolios	$	3,291,918	$	3,705,672	$	3,283,984	$	3,464,050
Deferred court costs	—		—		100,172		100,172
Financial Liabilities
Convertible notes and exchangeable notes(1)	564,136		622,081		642,547		693,708
Senior secured notes(2)	1,642,058		1,684,729		1,127,435		1,170,945

________________________

(1)Carrying amount represents the portion of the convertible and exchangeable notes classified as debt, while estimated fair value pertains to the face amount of the notes.

(2)Carrying amount represents historical cost, adjusted for any related debt discount or debt premium.

Derivatives and Hedging Instruments (Tables)

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value of Derivative Instruments

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, 2020

December 31, 2019

Balance Sheet
Location

Fair Value

Balance Sheet
Location

Fair Value

Derivatives designated as hedging instruments:

Interest rate cap contracts

Other assets

659

Other assets

2,460

Foreign currency exchange contracts

Other assets

—

Other assets

443

Interest rate swap agreements

Other liabilities

(5,232)

Other liabilities

(9,116)

Cross-currency swap agreements

Other assets

11,578

Other assets

—

Derivatives not designated as hedging instruments:

Foreign currency exchange contracts

Other assets

—

Other assets

1,030

Effects of Derivatives in Cash Flow Hedging Relationships


Derivatives Designated as Hedging Instruments	Gain (Loss) Recognized in OCI				Location of Gain (Loss) Reclassified from OCI into Income	Gain (Loss) Reclassified from OCI into Income
	Year Ended December 31,					Year Ended December 31,
	2020		2019			2020		2019
Foreign currency exchange contracts	$	(341)	$	1,100	Salaries and employee benefits	$	49	$	383
Foreign currency exchange contracts	(44)		(56)		General and administrative expenses	11		(19)
Interest rate swap agreements	(7,441)		(6,347)		Interest expense	(7,893)		(2,560)
Interest rate cap contracts	(3,001)		(1,752)		Interest expense	(2,846)		146
Cross-currency swap agreements	10,503		—		Interest expense / Other expense	10,121		—

The following table summarizes the effects of derivatives not designated as hedging instruments on the Company’s consolidated statements of operations during the periods presented (in thousands):


Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain (Loss) Recognized in Income
		Year ended December 31,
		2020		2019		2018
Foreign currency exchange contracts	Other expense	$	3,564	$	(2,959)	$	(9,221)
Interest rate cap contracts	Interest expense	—		—		(1,568)

Investment in Receivable Portfolios, Net (Tables)

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Transition of Receivable Portfolios

The table below illustrates the Company’s transition approach for its investment in receivable portfolios as of January 1, 2020 (in thousands):


	Amount
Investment in receivable portfolios prior to transition	$	3,283,984
Initial transitioned deferred court costs	44,166
	3,328,150
Allowance for credit losses	79,028,043
Amortized cost	82,356,193
Noncredit discount	132,533,142
Face value	214,889,335
Write-off of amortized cost	(82,356,193)
Write-off of noncredit discount	(132,533,142)
Negative allowance	3,328,150
Initial negative allowance from transition	$	3,328,150

The table below provides the detail on the establishment of negative allowance for expected recoveries of portfolios purchased during the periods presented (in thousands):


	Year Ended
	December 31, 2020
Purchase price	$	659,872
Allowance for credit losses	1,703,420
Amortized cost	2,363,292
Noncredit discount	3,464,670
Face value	5,827,962
Write-off of amortized cost	(2,363,292)
Write-off of noncredit discount	(3,464,670)
Negative allowance	659,872
Negative allowance for expected recoveries - current period purchases	$	659,872

Schedule Of Investment In Receivable Portfolios Table

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


	Year Ended December 31,
	2020		2019		2018
Balance, beginning of period	$	3,328,150	$	3,137,893	$	2,890,613
Purchases of receivable portfolios	659,872		1,046,696		1,131,898
Deconsolidation of receivable portfolios(1)	(2,822)		(51,935)		—
Put-backs and Recalls	(15,824)		(11,591)		(14,429)
Disposals and transfers to real estate owned	(9,459)		(11,495)		(12,456)
Sale of receivable portfolios(2)	—		(98,636)		—
Cash collections	(2,111,848)		(2,026,928)		(1,967,620)
Revenue from receivable portfolios	1,374,717		1,269,288		1,167,132
Changes in expected current period recoveries	228,075		—		—
Changes in expected future period recoveries	(220,829)		—		—
Portfolio (allowance) reversals, net	—		(8,108)		41,473
Foreign currency adjustments	61,886		38,800		(98,718)
Balance, end of period	$	3,291,918	$	3,283,984	$	3,137,893

________________________

(2)Represents the sale of certain portfolios in the Company’s European operations under its co-investment framework.

Schedule Of Accretable Yield And Estimate Of Zero Basis Future Cash Flows Table

The following table summarizes the change in accretable yield under the previous accounting guidance during the period presented (in thousands):


Balance as of December 31, 2018	$	4,026,206
Revenue from receivable portfolios	(1,269,288)
Allowance on receivable portfolios, net	8,108
Additions on existing portfolios, net	524,964
Additions for current purchases, net	1,081,774
Effect of foreign currency translation	77,307
Balance as of December 31, 2019	$	4,449,071

Schedule of Valuation Allowance for Investment in Receivable Portfolios


	Valuation Allowance
Balance as of December 31, 2017	$	102,576
Provision for portfolio allowances	14,421
Reversal of prior allowances	(55,894)
Effect of foreign currency translation	(472)
Balance as of December 31, 2018	60,631
Provision for portfolio allowances	36,806
Reversal of prior allowances	(28,698)
Sale of Baycorp	(1,036)
Effect of foreign currency translation	1,776
Balance as of December 31, 2019	$	69,479

Deferred Court Costs, Net (Tables)

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Deferred Court Costs

Net deferred court costs under the previous accounting method consisted of the following as of the date presented (in thousands):


	December 31, 2019
Court costs advanced	$	891,207
Court costs recovered	(369,043)
Court costs reserve	(421,992)
Deferred court costs, net	$	100,172

Schedule of Court Cost Reserve

A roll-forward of the Company’s court cost reserve as accounted for under the previous accounting method is as follows for the periods presented (in thousands):


	Year Ended December 31,
	2019		2018
Balance as of beginning of period	$	(396,460)	$	(364,015)
Provision for court costs	(82,987)		(90,026)
Charge-offs	60,618		53,383
Effect of foreign currency translation	(3,163)		4,198
Balance as of end of period	$	(421,992)	$	(396,460)

Composition of Certain Financial Statement Items (Tables)

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Property and Equipment

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


	December 31, 2020		December 31, 2019
Computer equipment and software	$	194,678	$	167,045
Leasehold improvements	43,621		39,542
Furniture, fixtures and equipment	10,514		10,428
Telecommunications equipment and other	3,450		3,156
Construction in process	4,739		2,089
	257,002		222,260
Less: accumulated depreciation and amortization	(129,705)		(102,209)
	$	127,297	$	120,051

Other Assets

Other assets consist of the following as of the dates presented (in thousands):


	December 31, 2020		December 31, 2019
Operating lease right-of-use assets	$	72,164	$	75,254
Identifiable intangible assets, net	45,012		51,371
Real estate owned	42,173		46,717
Income tax deposit	35,853		5,822
Deferred tax assets	33,202		24,134
Prepaid expenses	26,717		22,272
Service fee receivables	26,539		27,705
Other financial receivables	12,238		17,308



Other	55,264		58,640
Total	$	349,162	$	329,223

Borrowings (Tables)

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Schedule of Consolidated Debt and Capital Lease Obligations

The components of the Company’s consolidated borrowings were as follows as of the dates presented (in thousands):


	December 31, 2020		December 31, 2019
Global senior secured revolving credit facility	$	481,007	$	—
Encore revolving credit facility	—		492,000
Encore term loan facility	—		171,677
Encore private placement notes	146,550		308,750
Senior secured notes	1,651,619		1,129,039
Convertible notes and exchangeable notes	583,500		672,855
Cabot senior revolving credit facility	—		285,749
Cabot securitisation senior facility	478,131		464,092
Other	24,398		54,151
Finance lease liabilities	8,288		8,121
	3,373,493		3,586,434
Less: debt discount and issuance costs, net of amortization	(91,859)		(73,237)
Total	$	3,281,634	$	3,513,197

Schedule of Notes

The following table provides a summary of the Senior Secured Notes ($ in thousands):


	December 31, 2020		December 31, 2019		Maturity Date	Interest Rate
Cabot 2023 Notes	$	309,034	$	680,118	Oct 1, 2023	7.500	%
Cabot 2024 Floating Rate Notes	—		448,921		Jun 1, 2024	EURIBOR +6.375%
Encore 2025 Notes	426,752		—		Oct 15, 2025	4.875	%
Encore 2026 Notes	409,827		—		Feb 15, 2026	5.375	%
Encore 2028 Floating Rate Notes	506,006		—		Jan 15, 2028	EURIBOR +4.250%
	$	1,651,619	$	1,129,039


	December 31, 2020		December 31, 2019		Maturity Date	Interest Rate
2020 Convertible Notes (1)	$	—	$	89,355	Jul 1, 2020	3.000	%
2021 Convertible Notes	161,000		161,000		Mar 15, 2021	2.875	%
2022 Convertible Notes	150,000		150,000		Mar 15, 2022	3.250	%
2023 Exchangeable Notes	172,500		172,500		Sep 1, 2023	4.500	%
2025 Convertible Notes	100,000		100,000		Oct 1, 2025	3.250	%
	$	583,500	$	672,855

_______________________

(1)The 2020 Convertible Notes matured on July 1, 2020 and the Company repaid the outstanding principal in cash.

Schedule of Hedge Program for Convertible Notes

Certain key terms related to the convertible and exchangeable features as of December 31, 2020 are listed below:


	2021 Convertible Notes		2022 Convertible Notes		2023 Exchangeable Notes		2025 Convertible Notes
Initial conversion or exchange price	$	59.39	$	45.57	$	44.62	$	40.00
Closing stock price at date of issuance	$	47.51	$	35.05	$	36.45	$	32.00
Closing stock price date	Mar 5, 2014		Feb 27, 2017		Jul 20, 2018		Sep 4, 2019
Conversion or exchange rate (shares per $1,000 principal amount)	16.8386		21.9467		22.4090		25.0000
Conversion or exchange date	Sep 15, 2020		Sep 15, 2021		Mar 1, 2023		Jul 1, 2025

The details of the hedge program are listed below (in thousands, except conversion or exchange price):


	2021 Convertible Notes		2023 Exchangeable Notes
Cost of the hedge transaction(s)	$	19,545	$	17,785
Initial conversion or exchange price	$	59.39	$	44.62
Effective conversion or exchange price	$	83.14	$	62.48

Schedule of Balances of the Liability and Equity Components


	2021 Convertible Notes			2022 Convertible Notes			2023 Exchangeable Notes			2025 Convertible Notes
Debt component	$	143,645		$	137,266		$	157,971		$	91,024
Equity component	$	17,355		$	12,734		$	14,009		$	8,976
Equity issuance cost	$	581		$	398		$	—		$	224
Stated interest rate	2.875		%	3.250		%	4.500		%	3.250		%
Effective interest rate	4.700		%	5.200		%	6.500		%	5.000		%

The balances of the liability and equity components of all the Convertible Notes and Exchangeable Notes outstanding were as follows (in thousands):


	December 31, 2020		December 31, 2019
Liability component—principal amount	$	583,500	$	672,855
Unamortized debt discount	(19,364)		(30,308)
Liability component—net carrying amount	$	564,136	$	642,547
Equity component	$	53,074	$	83,127

Schedule of Interest Expense

Interest expense related to the Convertible Notes and Exchangeable Notes was as follows during the periods presented (in thousands):


	Year ended December 31,
	2020		2019		2018
Interest expense—stated coupon rate	$	21,857	$	23,845	$	17,518
Interest expense—amortization of debt discount	10,945		12,780		10,888
Interest expense—Convertible Notes and Exchangeable Notes	$	32,802	$	36,625	$	28,406

Summary of Debt Including Capital Lease Obligations Maturities

The aggregate amounts of the Company’s borrowings, maturing in each of the next five years and thereafter are as follows (in thousands):


2021	$	211,499
2022	198,573
2023	526,502
2024	511,963
2025	1,008,727
Thereafter	916,229
Total	$	3,373,493

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
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-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 235
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

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-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

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-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Summary of Stock Option Activity

A summary of the Company’s stock option activity as of December 31, 2020, and changes during the year then ended, are presented below:


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2019	9,166	$	22.17




Outstanding as of December 31, 2020	9,166	$	22.17	1.26	$	154
Exercisable as of December 31, 2020	9,166	$	22.17	1.26	$	154

A summary of the Company’s performance stock option activity as of December 31, 2020, and changes during the year then ended, are presented below:


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2019	164,013	$	31.73





Outstanding as of December 31, 2020	164,013	$	31.73	3.21	$	1,206
Vested as of December 31, 2020	150,697	$	30.95	3.19	$	1,206
Exercisable as of December 31, 2020	150,697	$	30.95	3.19	$	1,206

Summary of Restricted Stock Units

A summary of the Company’s stock award activities as of December 31, 2020, and changes during the year then ended, is presented below:


	Non-Vested Shares (1)	Weighted Average Grant Date Fair Value
Non-vested as of December 31, 2019	922,530	$	33.11
Awarded	443,101	$	38.51
Vested	(389,484)	$	35.45
Cancelled	(33,629)	$	39.68
Non-vested as of December 31, 2020	942,518	$	35.29

________________________

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Components of Pretax Income

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


	Year Ended December 31,
	2020		2019		2018
US	$	259,132	$	144,495	$	61,972
Foreign	23,766		56,747		94,516
Total income before provision for income taxes	$	282,898	$	201,242	$	156,488

Components of Provision for Income Taxes

The provision for income tax on earnings from continuing operations consisted of the following (in thousands):


	Year Ended December 31,
	2020		2019		2018
Current expense (benefit):
Federal	$	43,185	$	(2,917)	$	23,254
State	8,528		(6,464)		2,983
Foreign	10,112		21,008		29,532
	61,825		11,627		55,769
Deferred expense (benefit):
Federal	15,851		27,640		(10,447)
State	2,192		5,535		(2,169)
Foreign	(9,494)		(12,469)		3,599
	8,549		20,706		(9,017)
Provision for income taxes	$	70,374	$	32,333	$	46,752

Schedule of Effective Tax Rates

The reconciliation of federal statutory income tax rate to our effective tax rate was as follows:


	Year Ended December 31,
	2020		2019		2018
Federal provision	21.0	%	21.0	%	21.0	%
State provision	3.2	%	0.2	%	0.1	%
Foreign rate differential(1)	(0.5)	%	(2.2)	%	(11.7)	%

Change in valuation allowance(2)	0.9	%	(0.5)	%	17.7	%
IRS settlement(3)	—	%	(2.4)	%	—	%
Tax effect of CFPB settlement fees(4)	1.1	%	—	%	—	%
Other	(0.8)	%	—	%	2.8	%
Effective rate	24.9	%	16.1	%	29.9	%

________________________

(1)Relates primarily to lower tax rates on income or loss attributable to international operations.

(2)In 2018, valuation allowance net increase recorded as a result of certain foreign subsidiaries' cumulative operating losses for tax purposes.

(3)In 2019, relates to tax benefit resulting from tax accounting method change.

(4)Non-deductible expense for tax purposes. Refer to “Note 12: Commitments and Contingencies” for details of the CFPB settlement.

Components of Deferred Tax Assets and Liabilities

Significant components of the Company's deferred tax assets and liabilities were as follows (in thousands):


	December 31, 2020		December 31, 2019
Deferred tax assets:
Net operating losses	$	43,307	$	36,236
Operating lease liabilities	12,583		18,023
Accrued expenses	12,862		10,050
Difference in basis of bond and loan costs	1,267		4,194
Stock-based compensation	2,787		2,882
Other	5,596		1,822
Total deferred tax assets	78,402		73,207
Valuation allowance	(38,463)		(36,422)
Total deferred tax assets net of valuation allowance	39,939		36,785
Deferred tax liabilities:
Deferred court cost	—		(23,682)
Difference in basis of receivable portfolio	(20,806)		(57)
Right-of-use asset	(8,525)		(14,422)
Difference in basis of depreciable and amortizable assets	(13,863)		(3,680)
Prepaid expenses	(793)		(628)
Other	(1,682)		(4,559)
Total deferred tax liabilities	(45,669)		(47,028)
Net deferred tax liability(1)	$	(5,730)	$	(10,243)

________________________

Unrecognized Tax Benefit

A reconciliation of the beginning and ending amounts of unrecognized tax benefit is as follows (in thousands):


	Amount









Balance as of December 31, 2017	$	20,020

Increases related to prior year tax positions	256
Increases related to current year tax positions	1,958
Decrease related to expiration of statute of limitations	(3,221)
Decreases related to settlements with taxing authorities	(461)
Balance as of December 31, 2018	18,552
Decreases related to prior year tax positions	(10,673)
Increases related to current year tax positions	4,442
Decrease related to expiration of statute of limitations	(2,493)
Decreases related to settlements with taxing authorities	(1,920)
Balance as of December 31, 2019	7,908
Decrease related to prior year tax positions	(608)
Increases related to prior year tax positions	6
Increases related to current year tax positions	574
Decrease related to expiration of statute of limitations	(827)
Decreases related to settlements with taxing authorities	(272)
Balance as of December 31, 2020	$	6,781

Leases (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Lease cost

The components of lease expense were as follows during the periods presented (in thousands):


	Year Ended December 31,
	2020		2019
Operating lease costs(1)	$	16,331	$	19,450
Finance lease costs
Amortization of ROU assets	3,149		1,825
Interest on lease liabilities	420		563
Total lease costs	$	19,900	$	21,838

________________________

Supplemental balance sheet information

The following table provides supplemental consolidated statement of financial condition information related to leases as of the dates presented (in thousands):


	Classification	December 31, 2020		December 31, 2019
Assets
Operating lease ROU assets	Other assets	$	72,164	$	75,254
Finance lease ROU assets	Property and equipment, net	12,410		9,133
Total lease ROU assets		$	84,574	$	84,387

Liabilities
Operating lease liabilities	Other liabilities	$	90,659	$	93,847
Finance lease liabilities	Borrowings	8,288		8,121
Total lease liabilities		$	98,947	$	101,968


	December 31, 2020		December 31, 2019
Weighted-average remaining lease term (in years)
Operating leases	7.1		8.1
Finance leases	2.5		3.1
Weighted-average discount rate
Operating leases(1)	5.0	%	5.3	%
Finance leases	4.6	%	4.7	%

________________________

(1)Upon adoption of the new lease standard, discount rates used for existing operating leases were established at January 1, 2019.

Supplemental lease information

Supplemental lease information is summarized below (in thousands, except rate and lease term):


	Year Ended December 31,
	2020		2019
ROU assets obtained in exchange for new operating lease obligations(1)	$	8,990	$	123,477
ROU assets obtained in exchange for new finance lease obligations	3,276		5,299
Cash paid for amounts included in the measurement of lease liabilities
Operating leases - operating cash flows	17,396		14,874
Finance leases - operating cash flows	419		295
Finance leases - financing cash flows	3,114		1,898

________________________

(1)During the year ended December 31, 2019, the amount includes $89.1 million for operating leases existing as of January 1, 2019.

Lease maturities

Maturities of lease liabilities under non-cancelable leases as of December 31, 2020 are summarized as follows (in thousands):


	Finance Leases		Operating Leases		Total
2021	$	3,674	$	19,440	$	23,114
2022	3,410		15,872		19,282
2023	1,467		14,311		15,778
2024	241		14,474		14,715
2025	—		11,612		11,612
Thereafter	—		37,776		37,776
Total undiscounted lease payments	8,792		113,485		122,277
Less: imputed interest	(504)		(22,826)		(23,330)
Total lease liabilities	$	8,288	$	90,659	$	98,947

Lease maturities

Maturities of lease liabilities under non-cancelable leases as of December 31, 2020 are summarized as follows (in thousands):


	Finance Leases		Operating Leases		Total
2021	$	3,674	$	19,440	$	23,114
2022	3,410		15,872		19,282
2023	1,467		14,311		15,778
2024	241		14,474		14,715
2025	—		11,612		11,612
Thereafter	—		37,776		37,776
Total undiscounted lease payments	8,792		113,485		122,277
Less: imputed interest	(504)		(22,826)		(23,330)
Total lease liabilities	$	8,288	$	90,659	$	98,947

Segment Information (Tables)

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Schedule of Geographical Areas of Which Company Operates

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


	Year Ended December 31,
	2020		2019		2018
Total revenues(1):
United States	$	992,916	$	817,693	$	709,493
International
Europe(2)	490,385		520,433		556,265
Other geographies	18,099		59,555		96,272
Total	$	1,501,400	$	1,397,681	$	1,362,030

________________________

(1)Total revenues for periods in 2019 and 2018 are adjusted by net allowances. Total revenues are attributed to countries based on consumer location.

(2)Based on the financial information that is used to produce the general-purpose financial statements, providing further geographic information is impracticable.

Schedule of Long-lived Assets by Geographic Areas


	December 31, 2020		December 31, 2019
Long-lived assets(1):
United States	$	83,523	$	84,118
International
United Kingdom	37,225		28,602
Other foreign countries	6,549		7,331
	43,774		35,933
Total	$	127,297	$	120,051

________________________

(1)Long-lived assets consist of property and equipment, net and finance leases.

Goodwill and Identifiable Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Activity in the Goodwill Balance

The following table summarizes the activity in the Company’s goodwill balance during the periods presented (in thousands):


	Year Ended December 31,
	2020		2019
Balance as of beginning of period:	$	884,185	$	868,126



Goodwill impairment	—		(10,718)
Effect of foreign currency translation	22,777		26,777
Balance as of end of period:	$	906,962	$	884,185

Schedule of Acquired Intangible Assets

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


	As of December 31, 2020						As of December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	66,796	$	(22,714)	$	44,082	$	67,897	$	(18,191)	$	49,706
Developed technologies	5,048		(4,760)		288		4,734		(4,124)		610
Trade name and other	6,644		(6,002)		642		6,299		(5,244)		1,055

Total intangible assets	$	78,488	$	(33,476)	$	45,012	$	78,930	$	(27,559)	$	51,371

Weighted-Average Useful Lives of Intangible Assets

The weighted-average useful lives of intangible assets at the time of acquisition were as follows (in years):


			Weighted-Average Useful Lives
Customer relationships			10
Developed technologies			5
Trade name and other			7

Estimated Future Amortization Expense

Estimated future amortization expense related to finite-lived intangible assets as of December 31, 2020 is as follows (in thousands):


2021	$	6,746
2022	6,720
2023	6,361
2024	6,274
2025	6,226
Thereafter	12,685
Total	$	45,012

Ownership, Description of Business, and Summary of Significant Accounting Policies - New Accounting Pronouncements and Changes in Accounting Principles (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Jan. 01, 2021	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201613Member
Investment in receivable portfolios, carrying value	$ 3,291,918		$ 3,283,984	$ 3,137,893	$ 2,890,613
Deferred court costs, net	0		100,172
Other liabilities	146,893		147,436
Accumulated earnings	$ 1,055,668		888,058
Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Investment in receivable portfolios, carrying value			44,166
Deferred court costs, net			(100,172)
Other liabilities			(11,768)
Accumulated earnings		$ 16,100	(44,238)
Adjusted Balance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Investment in receivable portfolios, carrying value			3,328,150
Deferred court costs, net			0
Other liabilities			135,668
Accumulated earnings			$ 843,820

- Definition

Indicates amendment to accounting standards.

+ References

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+ Details

Ownership, Description of Business, and Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2020
Furniture, fixtures and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Furniture, fixtures and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years
Computer hardware and software \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Computer hardware and software \| Maximum
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 (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Net income attributable to Encore Capital Group, Inc. stockholders	$ 211,848	$ 167,869	$ 115,886
Weighted average common shares outstanding-basic (in shares)	31,427	31,210	28,313
Dilutive effect of stock-based awards (in shares)	283	264	259
Weighted average common shares outstanding-diluted (in shares)	31,710	31,474	28,572
Earnings per share
Earnings Per Share, Basic	$ 6.74	$ 5.38	$ 4.09
Earnings Per Share, Diluted	$ 6.68	$ 5.33	$ 4.06

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Ownership, Description of Business, and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Restricted cash	$ 20.3	$ 25.0
Anti-dilutive employee stock options outstanding (in shares)	51	64	66

Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Liabilities
Contingent consideration	$ (2,957)	$ (66)
Level 1
Liabilities
Contingent consideration	0	0
Level 2
Liabilities
Contingent consideration	0	0
Level 3
Liabilities
Contingent consideration	(2,957)	(66)
Cross-currency swap agreements
Assets
Interest rate cap contracts	11,578
Cross-currency swap agreements \| Level 1
Assets
Interest rate cap contracts	0
Cross-currency swap agreements \| Level 2
Assets
Interest rate cap contracts	11,578
Cross-currency swap agreements \| Level 3
Assets
Interest rate cap contracts	0
Foreign currency exchange contracts
Assets
Foreign Currency Contract, Asset, Fair Value Disclosure		1,473
Foreign currency exchange contracts \| Level 1
Assets
Foreign Currency Contract, Asset, Fair Value Disclosure		0
Foreign currency exchange contracts \| Level 2
Assets
Foreign Currency Contract, Asset, Fair Value Disclosure		1,473
Foreign currency exchange contracts \| Level 3
Assets
Foreign Currency Contract, Asset, Fair Value Disclosure		0
Interest rate cap contracts
Assets
Interest rate cap contracts	659	2,460
Interest rate cap contracts \| Level 1
Assets
Interest rate cap contracts	0	0
Interest rate cap contracts \| Level 2
Assets
Interest rate cap contracts	659	2,460
Interest rate cap contracts \| Level 3
Assets
Interest rate cap contracts	0	0
Interest rate swap agreements
Liabilities
Swap Agreements	(5,232)	(9,116)
Interest rate swap agreements \| Level 1
Liabilities
Swap Agreements	0	0
Interest rate swap agreements \| Level 2
Liabilities
Swap Agreements	(5,232)	(9,116)
Interest rate swap agreements \| Level 3
Liabilities
Swap Agreements	$ 0	$ 0

Fair Value Measurements - Schedule of Contingent Consideration Roll Forward (Details) - Contingent Consideration - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at Beginning of period	$ 66	$ 6,198	$ 10,612
Issuance of contingent consideration	2,848		1,728
Change in fair value of contingent consideration		(2,300)	(5,664)
Payment of contingent consideration	88	3,686	271
Effect of foreign currency translation	(131)	(146)	(207)
Balance at End of period	$ 2,957	$ 66	$ 6,198

Fair Value Measurements - Change in Redeemable Noncontrolling Interests (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)
Change in Redeemable Noncontrolling Interests [Roll Forward]
Balance, beginning of period	$ 151,978
Redemption of redeemable noncontrolling interest	138,835
Deconsolidation upon sale of redeemable noncontrolling interest	5,535
Net loss attributable to redeemable noncontrolling interest	(4,791)
Adjustment of the redeemable noncontrolling interest to fair value	(7,419)
Effect of foreign currency translation attributable to redeemable noncontrolling interest	(6,468)
Balance, end of period	$ 0

Fair Value Measurements - Schedule of Financial Instruments Not Required to Be Carried at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment in receivable portfolios	$ 3,291,918	$ 3,283,984
Deferred court costs	0	100,172
Carrying Amount \| Convertible notes and exchangeable notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible notes and exchangeable notes	564,136	642,547
Carrying Amount \| Secured Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior secured notes	1,642,058	1,127,435
Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment in receivable portfolios	3,705,672	3,464,050
Deferred court costs	0	100,172
Estimated Fair Value \| Convertible notes and exchangeable notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible notes and exchangeable notes	622,081	693,708
Estimated Fair Value \| Secured Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior secured notes	$ 1,684,729	$ 1,170,945

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate owned	$ 42,173	$ 46,717
Deferred court costs, net	$ 0	$ 100,172

Derivatives and Hedging Instruments - Schedule of Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Interest rate cap contracts
Derivative [Line Items]
Interest rate cap contracts	$ 659	$ 2,460
Foreign currency exchange contracts
Derivative [Line Items]
Foreign Currency Contract, Asset, Fair Value Disclosure		1,473
Interest rate swap agreements
Derivative [Line Items]
Interest rate swap agreements - liabilities	(5,232)	(9,116)
Cross-currency swap agreements
Derivative [Line Items]
Interest rate cap contracts	11,578
Designated as Hedging Instrument \| Other assets \| Interest rate cap contracts
Derivative [Line Items]
Interest rate cap contracts	659	2,460
Designated as Hedging Instrument \| Other assets \| Foreign currency exchange contracts
Derivative [Line Items]
Foreign Currency Contract, Asset, Fair Value Disclosure	0	443
Designated as Hedging Instrument \| Other assets \| Cross-currency swap agreements
Derivative [Line Items]
Foreign Currency Contracts, Liability, Fair Value Disclosure	11,578	0
Designated as Hedging Instrument \| Other liabilities \| Interest rate swap agreements
Derivative [Line Items]
Interest rate swap agreements - liabilities	(5,232)	(9,116)
Not Designated as Hedging Instruments \| Other assets \| Foreign currency exchange contracts
Derivative [Line Items]
Foreign Currency Contract, Asset, Fair Value Disclosure	$ 0	$ 1,030

Derivatives and Hedging Instruments - Narrative (Details)		1 Months Ended	3 Months Ended	12 Months Ended
	Aug. 03, 2018 USD ($)	Sep. 30, 2020 instrument	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($) instrument	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2020 EUR (€) instrument	Dec. 31, 2020 GBP (£) instrument	Aug. 31, 2020 instrument	May 08, 2018 GBP (£)
Reclassification out of Accumulated Other Comprehensive Income
Derivative [Line Items]
Loss reclassified from OCI into income (loss)			$ 2,500,000
Forward contracts
Derivative [Line Items]
Gains or losses were reclassified from OCI into earnings				$ 0	$ 0	$ 0
Interest rate swap agreements
Derivative [Line Items]
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months				8,700,000
Cross-currency swap agreements
Derivative [Line Items]
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months				3,800,000
Interest rate cap contracts
Derivative [Line Items]
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months				$ (500,000)
Foreign currency exchange contracts
Derivative [Line Items]
Foreign Currency Contract, Asset, Fair Value Disclosure					$ 1,473,000
Cash Flow Hedges \| Forward contracts
Derivative [Line Items]
Derivative, Number of Instruments Held \| instrument				0			0	0
Cash Flow Hedges \| Interest rate swap agreements
Derivative [Line Items]
Number of interest rate derivatives held \| instrument				2			2	2	4
Number Of Interest Rate Derivatives Settled \| instrument		2
Derivative instrument, notional amount				$ 196,400,000
Cash Flow Hedges \| Cross-currency swap agreements
Derivative [Line Items]
Derivative, Number of Instruments Held \| instrument				4			4	4
Derivative instrument, notional amount				$ 426,800,000			€ 350,000,000.0
Cash Flow Hedges \| Interest rate cap contracts
Derivative [Line Items]
Number of interest rate derivatives held \| instrument				2			2	2
Derivative instrument, notional amount				$ 965,800,000
Not Designated as Hedging Instruments \| Forward contracts
Derivative [Line Items]
Derivative, Number of Instruments Held \| instrument				0			0	0
Derivative instrument, notional amount \| £										£ 176,000,000.0
Loss on forward contract settlement	$ 9,300,000
Minimum \| Not Designated as Hedging Instruments \| Cash Flow Hedges
Derivative [Line Items]
Term of contract (years)				1 month
Maximum \| Not Designated as Hedging Instruments \| Cash Flow Hedges
Derivative [Line Items]
Term of contract (years)				3 months
2018 Caps \| Cash Flow Hedges \| Interest rate cap contracts
Derivative [Line Items]
Number of interest rate derivatives held \| instrument				2			2	2
2019 Cap \| Cash Flow Hedges \| Interest rate cap contracts
Derivative [Line Items]
Derivative instrument, notional amount				$ 487,700,000			€ 400,000,000.0
2020 Caps \| Cash Flow Hedges \| Interest rate cap contracts
Derivative [Line Items]
Derivative instrument, notional amount				$ 478,100,000				£ 350,000,000.0

Derivatives and Hedging Instruments - Effects of Derivatives in Cash Flow Hedging Relationships (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Derivative [Line Items]
Gain (Loss) Recognized in OCI	$ 168	$ (4,268)	$ (5,915)
Designated as Hedging Instrument \| Foreign currency exchange contracts \| Cash Flow Hedges \| Salaries and employee benefits
Derivative [Line Items]
Gain (Loss) Recognized in OCI	(341)	1,100
Gain (Loss) Reclassified from OCI into Income	49	383
Designated as Hedging Instrument \| Foreign currency exchange contracts \| Cash Flow Hedges \| General and administrative expenses
Derivative [Line Items]
Gain (Loss) Recognized in OCI	(44)	(56)
Gain (Loss) Reclassified from OCI into Income	11	(19)
Designated as Hedging Instrument \| Interest rate swap agreements \| Cash Flow Hedges \| Interest Expense
Derivative [Line Items]
Gain (Loss) Recognized in OCI	(7,441)	(6,347)
Gain (Loss) Reclassified from OCI into Income	(7,893)	(2,560)
Designated as Hedging Instrument \| Interest rate cap contracts \| Cash Flow Hedges \| Interest Expense
Derivative [Line Items]
Gain (Loss) Recognized in OCI	(3,001)	(1,752)
Gain (Loss) Reclassified from OCI into Income	(2,846)	146
Designated as Hedging Instrument \| Cross-currency swap agreements \| Cash Flow Hedges \| Interest Expense / Other Income
Derivative [Line Items]
Gain (Loss) Recognized in OCI	10,503	0
Gain (Loss) Reclassified from OCI into Income	$ 10,121	$ 0

Derivatives and Hedging Instruments - Summary of Effects of Derivatives not Designated as Hedging Instruments (Details) - Cash Flow Hedges - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Other Expense \| Foreign currency exchange contracts
Derivative [Line Items]
Amount of Gain (Loss) Recognized in Income	$ 3,564	$ (2,959)	$ (9,221)
Interest Expense \| Interest rate cap contracts
Derivative [Line Items]
Amount of Gain (Loss) Recognized in Income	$ 0	$ 0	$ (1,568)

Investment in Receivable Portfolios, Net - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Receivables [Abstract]
Changes in expected future period recoveries	$ (220,829)	$ 0	$ 0
Changes in expected current period recoveries	$ 228,075	$ 0	$ 0

Investment in Receivable Portfolios, Net - Transition Approach (Details) - USD ($) $ in Thousands		12 Months Ended
	Jan. 01, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Allowance for Credit Loss [Line Items]
Accounting Standards Update [Extensible List]		us-gaap:AccountingStandardsUpdate201613Member
Investment in receivable portfolios, carrying value		$ 3,291,918	$ 3,283,984	$ 3,137,893	$ 2,890,613
Allowance for credit losses	$ 79,028,043	1,703,420
Amortized cost	82,356,193
Noncredit discount	132,533,142	3,464,670
Face value	214,889,335	5,827,962
Write-off of amortized cost	(82,356,193)	(2,363,292)
Write-off of noncredit discount	(132,533,142)	(3,464,670)
Negative allowance	3,328,150	$ 659,872
Adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Investment in receivable portfolios, carrying value			44,166
Adjusted Balance
Financing Receivable, Allowance for Credit Loss [Line Items]
Investment in receivable portfolios, carrying value			$ 3,328,150
Investment In Receivable Portfolios, Net
Financing Receivable, Allowance for Credit Loss [Line Items]
Investment in receivable portfolios, carrying value	$ 3,328,150

Investment in Receivable Portfolios, Net - Establishment of Negative Allowance (Details) - USD ($) $ in Thousands		12 Months Ended
	Jan. 01, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Purchase price		$ 659,872
Allowance for credit losses	$ 79,028,043	1,703,420
Amortized cost		2,363,292
Noncredit discount	132,533,142	3,464,670
Face value	214,889,335	5,827,962
Write-off of amortized cost	(82,356,193)	(2,363,292)
Write-off of noncredit discount	(132,533,142)	(3,464,670)
Negative allowance	$ 3,328,150	659,872
Negative allowance for expected recoveries - current period purchases		$ 659,872	$ 1,046,696	$ 1,131,898

Investment in Receivable Portfolios, Net - Summary of Changes in Balance of Investment in Receivable Portfolios (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Loans and Leases Receivable Disclosure [Line Items]
Balance, beginning of period	$ 3,283,984	$ 3,137,893	$ 2,890,613
Purchases of Receivable Portfolios	659,872	1,046,696	1,131,898
Deconsolidation of receivable portfolios	(2,822)	(51,935)	0
Put-backs and Recalls	(15,824)	(11,591)	(14,429)
Disposals and transfers to real estate owned	(9,459)	(11,495)	(12,456)
Sale of receivable portfolios	0	(98,636)	0
Cash collections	(2,111,848)	(2,026,928)	(1,967,620)
Revenue from receivable portfolios	1,374,717	1,269,288	1,167,132
Changes in expected current period recoveries	228,075	0	0
Changes in expected future period recoveries	(220,829)	0	0
Portfolio (allowance) reversals, net	0	(8,108)	41,473
Foreign currency adjustments	61,886	38,800	(98,718)
Balance, end of period	3,291,918	3,283,984	$ 3,137,893
Adjusted Balance
Loans and Leases Receivable Disclosure [Line Items]
Balance, beginning of period	$ 3,328,150
Balance, end of period		$ 3,328,150

Investment in Receivable Portfolios, Net - Summary of Accretable Yield and an Estimate of Zero Basis Future Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Investment in Receivables Portfolio [Roll Forward]
Balance at beginning of period	$ 4,449,071	$ 4,026,206
Revenue from receivable portfolios	(1,374,717)	(1,269,288)	$ (1,167,132)
Allowance on receivable portfolios, net	$ 0	8,108	(41,473)
Additions on existing portfolios, net		524,964
Additions for current purchases, net		1,081,774
Effect of foreign currency translation		77,307
Balance at end of period		$ 4,449,071	$ 4,026,206

Investment in Receivable Portfolios, Net - Summary of Change in Valuation Allowance for Investment in Receivable Portfolios (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Receivable Portfolio, Valuation Allowance [Roll Forward]
Balance at beginning of period	$ 60,631	$ 102,576
Provision for portfolio allowances	36,806	14,421
Reversal of prior allowances	(28,698)	(55,894)
Sale of Baycorp	(1,036)
Effect of foreign currency translation	1,776	(472)
Balance at end of period	$ 69,479	$ 60,631

Deferred Court Costs, Net - Schedule of Deferred Court Costs (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Court costs advanced		$ 891,207
Court costs recovered		(369,043)
Court costs reserve		(421,992)	$ (396,460)	$ (364,015)
Deferred court costs, net	$ 0	$ 100,172

Deferred Court Costs, Net - Schedule of Court Cost Reserve (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets [Roll Forward]
Balance as of beginning of period	$ (396,460)	$ (364,015)
Provision for court costs	(82,987)	(90,026)
Charge-offs	60,618	53,383
Effect of foreign currency translation	(3,163)	4,198
Balance as of end of period	$ (421,992)	$ (396,460)

Composition of Certain Financial Statement Items - Schedule of Property Plant and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 257,002	$ 222,260
Less: accumulated depreciation and amortization	(129,705)	(102,209)
Property and equipment, net	127,297	120,051
Depreciation and amortization expense	34,800	33,300	$ 29,500
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	194,678	167,045
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	43,621	39,542
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	10,514	10,428
Telecommunications equipment and other
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	3,450	3,156
Construction in process
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 4,739	$ 2,089

Composition of Certain Financial Statement Items - Schedule of Other Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssets
Operating lease right-of-use assets	$ 72,164	$ 75,254
Identifiable intangible assets, net	45,012	51,371
Real estate owned	42,173	46,717
Income tax deposit	35,853	5,822
Deferred tax assets	33,202	24,134
Prepaid expenses	26,717	22,272
Service fee receivables	26,539	27,705
Other financial receivables	12,238	17,308
Other	55,264	58,640
Total	$ 349,162	$ 329,223

Borrowings - Consolidated Debt and Capital Lease Obligations - Table and Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)	Dec. 31, 2020 EUR (€)	Dec. 31, 2019 USD ($)
Debt Instrument [Line Items]
Finance Lease, Liability	$ 8,288		$ 8,121
Debt and finance lease liabilities, gross	3,373,493		3,586,434
Less: debt discount and issuance costs, net of amortization	(91,859)		(73,237)
Borrowings	3,281,634		3,513,197
Debt Instrument Face Value	583,500		672,855
Fees paid to lenders and third party costs	49,700
Debt Issuance Costs, Gross	24,600
Debt Issuance Costs, Net	18,900
Interest Expense
Debt Instrument [Line Items]
Debt Issuance Costs, Gross	2,700
General and Administrative Expense
Debt Instrument [Line Items]
Debt Issuance Costs, Gross	6,900
Loss on Extinguishment of Debt [Member]
Debt Instrument [Line Items]
Debt Issuance Costs, Gross	15,000
Credit Facility \| Global senior secured revolving credit facility
Debt Instrument [Line Items]
Long-term debt	481,007		0
Credit Facility \| Encore revolving credit facility
Debt Instrument [Line Items]
Long-term debt	0		492,000
Credit Facility \| Encore term loan facility
Debt Instrument [Line Items]
Long-term debt	0		171,677
Credit Facility \| Cabot senior revolving credit facility
Debt Instrument [Line Items]
Long-term debt	0		285,749
Credit Facility \| Cabot securitisation senior facility
Debt Instrument [Line Items]
Long-term debt	478,131		464,092
Encore private placement notes \| Encore private placement notes
Debt Instrument [Line Items]
Long-term debt	146,550		308,750
Senior secured notes \| Senior secured notes
Debt Instrument [Line Items]
Long-term debt	1,651,619		1,129,039
Convertible notes and exchangeable notes \| Convertible notes and exchangeable notes
Debt Instrument [Line Items]
Long-term debt	583,500		672,855
Other
Debt Instrument [Line Items]
Long-term debt	24,398		$ 54,151
Secured Debt \| Encore 2025 Notes
Debt Instrument [Line Items]
Debt Instrument Face Value	$ 410,800	€ 350,000,000.0
Stated interest rate	4.875%	4.875%

Borrowings - Global Senior Secured Revolving Credit Facility - Narrative (Details)	12 Months Ended
	Dec. 31, 2020 USD ($)	Dec. 31, 2019
Global senior secured revolving credit facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit facility	$ 1,050,000,000.0
Maximum ratio of financial indebtedness to cash and cash equivalent investments	0.75
Utilization threshold (as a percent)	20.00%
Maximum ratio of super senior liabilities to cash and cash equivalent investments	0.275
Fixed charge coverage ratio	2.0
Long-term debt	$ 481,000,000.0
Remaining borrowing capacity	$ 569,000,000.0
Weighted average interest rate (as a percent)	3.25%
Cabot Credit Facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Weighted average interest rate (as a percent)	3.30%	3.52%
Encore revolving credit facility
Debt Instrument [Line Items]
Weighted average interest rate (as a percent)	3.90%	5.27%
LIBOR \| Global senior secured revolving credit facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.50%
Floor interest rate	0.75%
Euro Interbank Offered Rate (EURIBOR) \| Global senior secured revolving credit facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.50%
Floor interest rate	0.75%

Borrowings - Encore Private Placement Notes - Narrative (Details) - USD ($)	1 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2020	Dec. 31, 2019	Aug. 31, 2017
Debt Instrument [Line Items]
Debt issued		$ 583,500,000	$ 672,855,000
Senior secured notes		1,651,619,000	$ 1,129,039,000
2017 Senior Secured Notes \| Term Loan Facility
Debt Instrument [Line Items]
Debt issued				$ 325,000,000.0
Senior secured notes		$ 146,600,000
Stated interest rate		5.625%
Senior Secured Notes, periodic principal repayment		$ 9,800,000
Repayment of Long-term Debt, Long-term Lease Obligation, and Capital Security	$ 103,700,000
Repayment of Long-term Debt, Make-whole Payment	$ 10,400,000

Borrowings - Senior Secured Notes - Table and Narrative (Details)	3 Months Ended		12 Months Ended
	Dec. 31, 2020 USD ($)	Dec. 31, 2020 GBP (£)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2020 EUR (€)	Dec. 31, 2020 GBP (£)
Debt Instrument [Line Items]
Senior secured notes	$ 1,651,619,000		$ 1,651,619,000	$ 1,129,039,000
Debt issued	583,500,000		583,500,000	672,855,000
Loss on extinguishment of debt			(40,951,000)	(8,989,000)	$ (2,693,000)
Cabot 2023 Notes \| Secured Debt
Debt Instrument [Line Items]
Senior secured notes	$ 309,034,000		$ 309,034,000	680,118,000			£ 226,200,000
Stated interest rate	7.50%		7.50%			7.50%	7.50%
Debt issued	$ 700,700,000		$ 700,700,000				£ 512,900,000
Debt Instrument, Redemption Price, Percentage	101.875%	101.875%
Early Repayment of Senior Debt	$ 391,700,000	£ 286,700,000
Loss on extinguishment of debt			12,800,000
Gain (Loss) on Extinguishment of Debt, Net of Tax			10,300,000
Cabot 2024 Floating Rate Notes \| Secured Debt
Debt Instrument [Line Items]
Senior secured notes	0		0	448,921,000
Debt issued	$ 487,700,000		$ 487,700,000			€ 400,000,000.0
Variable rate floor	0.00%		0.00%			0.00%	0.00%
Loss on extinguishment of debt			$ 13,100,000
Gain (Loss) on Extinguishment of Debt, Net of Tax			10,600,000
Encore 2025 Notes \| Secured Debt
Debt Instrument [Line Items]
Senior secured notes	$ 426,752,000		$ 426,752,000	0
Stated interest rate	4.875%		4.875%			4.875%	4.875%
Debt issued	$ 410,800,000		$ 410,800,000			€ 350,000,000.0
Issuance price	98.889%		98.889%			98.889%	98.889%
Encore 2026 Notes \| Secured Debt
Debt Instrument [Line Items]
Senior secured notes	$ 409,827,000		$ 409,827,000	0
Stated interest rate	5.375%		5.375%			5.375%	5.375%
Debt issued \| £							£ 300,000,000.0
Issuance price	100.00%		100.00%			100.00%	100.00%
Encore 2028 Floating Rate Notes \| Secured Debt
Debt Instrument [Line Items]
Senior secured notes	$ 506,006,000		$ 506,006,000	$ 0
Basis spread on variable rate (as a percent)			4.25%
Debt issued	$ 506,000,000.0		$ 506,000,000.0			€ 415,000,000.0
Variable rate floor	0.00%		0.00%			0.00%	0.00%
Issuance price	99.00%		99.00%			99.00%	99.00%
Euro Interbank Offered Rate (EURIBOR) \| Cabot 2024 Floating Rate Notes \| Secured Debt
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			6.375%
Euro Interbank Offered Rate (EURIBOR) \| Encore 2028 Floating Rate Notes \| Secured Debt
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			4.25%

Borrowings - Encore Convertible Notes and Exchangeable Notes (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) $ / shares	Dec. 31, 2019 USD ($)
Debt Instrument [Line Items]
Debt issued \| $	$ 583,500	$ 672,855
Convertible Notes \| 2020 Convertible Notes
Debt Instrument [Line Items]
Debt issued \| $	$ 0	89,355
Stated interest rate	3.00%
Convertible Notes \| 2021 Convertible Notes
Debt Instrument [Line Items]
Debt issued \| $	$ 161,000	161,000
Stated interest rate	2.875%
Initial conversion price (USD per share)	$ 59.39
Closing stock price at date of issuance (in dollars per share)	$ 47.51
Debt Instrument, Convertible, Conversion Ratio	0.0168386
Convertible Notes \| 2022 Convertible Notes
Debt Instrument [Line Items]
Debt issued \| $	$ 150,000	150,000
Stated interest rate	3.25%
Initial conversion price (USD per share)	$ 45.57
Closing stock price at date of issuance (in dollars per share)	$ 35.05
Debt Instrument, Convertible, Conversion Ratio	0.0219467
Convertible Notes \| 2025 Convertible Notes
Debt Instrument [Line Items]
Debt issued \| $	$ 100,000	100,000
Stated interest rate	3.25%
Initial conversion price (USD per share)	$ 40.00
Closing stock price at date of issuance (in dollars per share)	$ 32.00
Debt Instrument, Convertible, Conversion Ratio	0.025
Exchangeable Notes Payable \| 2023 Exchangeable Notes
Debt Instrument [Line Items]
Debt issued \| $	$ 172,500	$ 172,500
Stated interest rate	4.50%
Initial conversion price (USD per share)	$ 44.62
Closing stock price at date of issuance (in dollars per share)	$ 36.45
Debt Instrument, Convertible, Conversion Ratio	0.022409

Borrowings - Debt and Equity Components and Issuance Costs of Convertible Notes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Equity component	$ 53,074	$ 83,127
2021 Convertible Notes \| Convertible Notes
Debt Instrument [Line Items]
Debt component	143,645
Equity component	17,355
Equity issuance cost	$ 581
Stated interest rate	2.875%
Effective interest rate (as a percent)	4.70%
2022 Convertible Notes \| Convertible Notes
Debt Instrument [Line Items]
Debt component	$ 137,266
Equity component	12,734
Equity issuance cost	$ 398
Stated interest rate	3.25%
Effective interest rate (as a percent)	5.20%
2023 Exchangeable Notes \| Exchangeable Notes Payable
Debt Instrument [Line Items]
Debt component	$ 157,971
Equity component	14,009
Equity issuance cost	$ 0
Stated interest rate	4.50%
Effective interest rate (as a percent)	6.50%
2025 Convertible Notes \| Convertible Notes
Debt Instrument [Line Items]
Debt component	$ 91,024
Equity component	8,976
Equity issuance cost	$ 224
Stated interest rate	3.25%
Effective interest rate (as a percent)	5.00%

Borrowings - Balances of Liability and Equity Components (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Liability component—principal amount	$ 583,500	$ 672,855
Unamortized debt discount	(19,364)	(30,308)
Liability component—net carrying amount	564,136	642,547
Equity component	$ 53,074	$ 83,127

Borrowings - Interest Expense (Details) - Convertible notes and exchangeable notes - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Interest expense—stated coupon rate	$ 21,857	$ 23,845	$ 17,518
Interest expense—amortization of debt discount	10,945	12,780	10,888
Total interest expense	$ 32,802	$ 36,625	$ 28,406

Borrowings - Conversion and EPS Impact of Convertible Notes Hedging Transactions (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) $ / shares
2021 Convertible Notes \| Convertible Notes
Debt Instrument [Line Items]
Cost of the hedge transaction(s) \| $	$ 19,545
Conversion price (USD per share)	$ 59.39
2021 Convertible Notes \| Hedging of Convertible Debt Instrument \| Convertible Notes
Debt Instrument [Line Items]
Conversion price (USD per share)	$ 83.14
2023 Exchangeable Notes \| Exchangeable Notes Payable
Debt Instrument [Line Items]
Cost of the hedge transaction(s) \| $	$ 17,785
Conversion price (USD per share)	$ 44.62
2023 Exchangeable Notes \| Hedging of Convertible Debt Instrument \| Exchangeable Notes Payable
Debt Instrument [Line Items]
Conversion price (USD per share)	$ 62.48

Borrowings - Cabot Securitisation Senior Facility - Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2020 GBP (£)
Debt Instrument [Line Items]
Book value \| $	$ 4,864,523	$ 4,909,950
Cabot securitisation senior facility
Debt Instrument [Line Items]
Maximum borrowing capacity \| £			£ 350,000,000.0
Credit facility, outstanding amount	478,100		350,000,000.0
Book value	$ 543,300		£ 397,700,000
Weighted average interest rate (as a percent)	3.23%	3.74%
Cabot securitisation senior facility \| Sterling Overnight Index Average (SONIA) \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	3.06%
Cabot securitisation senior facility \| Minimum \| Sterling Overnight Index Average (SONIA) \| Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	0.00%
Cabot securitisation senior facility \| Maximum \| Sterling Overnight Index Average (SONIA) \| Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.00%

Borrowings - Summary of Debt Obligations Maturities (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Maturities of Long-term Debt and Capital Lease Obligations [Abstract]
Principal amortization in 2021	$ 211,499
Principal amortization in 2022	198,573
Principal amortization in 2023	526,502
Principal amortization in 2024	511,963
Principal amortization in 2025	1,008,727
Thereafter	916,229
Total	$ 3,373,493

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Apr. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 16.6	$ 12.6	$ 13.0
Tax benefit from stock-based compensation arrangements	$ 2.5	1.2	1.3
Cash received from option exercise		0.3	0.7
Stock options intrinsic value		1.0	0.4
Performance stock options, threshold trading days	20 days
Performance stock options, threshold increase from closing price on date of grant	25.00%
Unrecognized compensation cost, expected period of recognition	1 year 2 months 12 days
Unrecognized compensation cost, non vested shares	$ 15.4
Fair value of restricted stock units and restricted stock awards vested	$ 14.5	$ 8.9	$ 8.8
Weighted Average Grant Date Fair Value, Awarded (in dollars per share)	$ 38.51	$ 32.42	$ 38.52
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, contractual term	10 years
Minimum \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation, vesting period	3 years
Maximum \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation, vesting period	5 years
2017 Incentive Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for grant (in shares)				5,713,571
Conversion ratio full value awards				2.12
2017 Incentive Compensation Plan \| Full Value Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Conversion ratio full value awards				2.12
2017 Incentive Compensation Plan \| Stock Options and Stock Appreciation Rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Conversion ratio full value awards				1
2017 Plan and 2013 Plan \| Performance Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation, vesting period	3 years
Share-based compensation, contractual term	7 years
Options performance measurement period	4 years

Stock-Based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) $ / shares shares
Number of Shares
Number of Shares, Outstanding, Beginning Balance (in shares) \| shares	9,166
Number of Shares, Outstanding, Ending Balance (in shares) \| shares	9,166
Number of Shares, Exercisable, Ending Balance (in shares) \| shares	9,166
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted Average Exercise Price, Outstanding, Beginning Balance (in dollars per share) \| $ / shares	$ 22.17
Weighted Average Exercise Price, Outstanding, Ending Balance (in dollars per share) \| $ / shares	22.17
Weighted Average Exercise Price, Exercisable, Ending Balance (in dollars per share) \| $ / shares	$ 22.17
Weighted Average Remaining Contractual Term (in years), Outstanding	1 year 3 months 3 days
Weighted Average Remaining Contractual Term (in years), Exercisable	1 year 3 months 3 days
Aggregate intrinsic value, Outstanding \| $	$ 154
Aggregate intrinsic value, Exercisable \| $	$ 154
Performance Stock Options
Number of Shares
Number of Shares, Outstanding, Beginning Balance (in shares) \| shares	164,013
Number of Shares, Outstanding, Ending Balance (in shares) \| shares	164,013
Number of Shares, Vested or Expected to Vest (in shares) \| shares	150,697
Number of Shares, Exercisable, Ending Balance (in shares) \| shares	150,697
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted Average Exercise Price, Outstanding, Beginning Balance (in dollars per share) \| $ / shares	$ 31.73
Weighted Average Exercise Price, Outstanding, Ending Balance (in dollars per share) \| $ / shares	31.73
Weighted Average Exercise Price, Vested and Expected to Vest (in dollars per share) \| $ / shares	30.95
Weighted Average Exercise Price, Exercisable, Ending Balance (in dollars per share) \| $ / shares	$ 30.95
Weighted Average Remaining Contractual Term (in years), Outstanding	3 years 2 months 15 days
Weighted Average Remaining Contractual Term (in years), Vested or expected to vest	3 years 2 months 8 days
Weighted Average Remaining Contractual Term (in years), Exercisable	3 years 2 months 8 days
Aggregate intrinsic value, Outstanding \| $	$ 1,206
Aggregate intrinsic value, Vested or expected to vest \| $	1,206
Aggregate intrinsic value, Exercisable \| $	$ 1,206

Stock-Based Compensation - Summary of Performance Stock Options Activity (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) $ / shares shares
Number of Shares
Number of Shares, Outstanding, Beginning Balance (in shares) \| shares	9,166
Number of Shares, Outstanding, Ending Balance (in shares) \| shares	9,166
Number of Shares, Exercisable, Ending Balance (in shares) \| shares	9,166
Weighted Average Grant Date Fair Value
Weighted Average Exercise Price, Outstanding, Beginning Balance (in dollars per share) \| $ / shares	$ 22.17
Weighted Average Exercise Price, Outstanding, Ending Balance (in dollars per share) \| $ / shares	22.17
Weighted Average Exercise Price, Exercisable, Ending Balance (in dollars per share) \| $ / shares	$ 22.17
Weighted Average Remaining Contractual Term (in years), Outstanding	1 year 3 months 3 days
Weighted Average Remaining Contractual Term (in years), Exercisable	1 year 3 months 3 days
Aggregate intrinsic value, Outstanding \| $	$ 154
Aggregate intrinsic value, Exercisable \| $	$ 154
Performance Stock Options
Number of Shares
Number of Shares, Outstanding, Beginning Balance (in shares) \| shares	164,013
Number of Shares, Outstanding, Ending Balance (in shares) \| shares	164,013
Number of Shares, Vested or Expected to Vest (in shares) \| shares	150,697
Number of Shares, Exercisable, Ending Balance (in shares) \| shares	150,697
Weighted Average Grant Date Fair Value
Weighted Average Exercise Price, Outstanding, Beginning Balance (in dollars per share) \| $ / shares	$ 31.73
Weighted Average Exercise Price, Outstanding, Ending Balance (in dollars per share) \| $ / shares	31.73
Weighted Average Exercise Price, Vested and Expected to Vest (in dollars per share) \| $ / shares	30.95
Weighted Average Exercise Price, Exercisable, Ending Balance (in dollars per share) \| $ / shares	$ 30.95
Weighted Average Remaining Contractual Term (in years), Outstanding	3 years 2 months 15 days
Weighted Average Remaining Contractual Term (in years), Vested or expected to vest	3 years 2 months 8 days
Weighted Average Remaining Contractual Term (in years), Exercisable	3 years 2 months 8 days
Aggregate intrinsic value, Outstanding \| $	$ 1,206
Aggregate intrinsic value, Vested or expected to vest \| $	1,206
Aggregate intrinsic value, Exercisable \| $	$ 1,206

Stock-Based Compensation - Summary of Stock Awards (Details) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Non-Vested Shares
Non-Vested Shares, Beginning Balance (in shares)	922,530
Non-Vested Shares, Awarded (in shares)	443,101
Non-Vested Shares, Vested (in shares)	(389,484)
Non-Vested Shares, Cancelled (in shares)	(33,629)
Non-Vested Shares, Ending Balance (in shares)	942,518	922,530
Weighted Average Grant Date Fair Value
Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share)	$ 33.11
Weighted Average Grant Date Fair Value, Awarded (in dollars per share)	38.51	$ 32.42	$ 38.52
Weighted Average Grant Date Fair Value, Vested (in dollars per share)	35.45
Weighted Average Grant Date Fair Value, Cancelled (in dollars per share)	39.68
Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share)	$ 35.29	$ 33.11
Performance Shares
Weighted Average Grant Date Fair Value
Maximum shares that could vest (percent)	200.00%
Maximum number that could vest (in shares)	1,255,445	1,171,334

Income Taxes Income Taxes - Income Before Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Domestic	$ 259,132	$ 144,495	$ 61,972
Foreign	23,766	56,747	94,516
Income before income taxes	$ 282,898	$ 201,242	$ 156,488

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=68072869&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

Income Taxes Income Taxes - Income Tax Provision for Continuing Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Federal	$ 43,185	$ (2,917)	$ 23,254
State	8,528	(6,464)	2,983
Foreign	10,112	21,008	29,532
Total current income tax expense	61,825	11,627	55,769
Federal	15,851	27,640	(10,447)
State	2,192	5,535	(2,169)
Foreign	(9,494)	(12,469)	3,599
Total deferred income tax expense	8,549	20,706	(9,017)
Provision for income taxes	$ 70,374	$ 32,333	$ 46,752

Income Taxes - Schedule of Effective Tax Rates (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Federal provision	21.00%	21.00%	21.00%
State provision	3.20%	0.20%	0.10%
Foreign rate differential	(0.50%)	(2.20%)	(11.70%)
Change in valuation allowance	0.90%	(0.50%)	17.70%
IRS Settlement	0.00%	(2.40%)	0.00%
Tax effect of CFPB settlement fees	1.10%	0.00%	0.00%
Other	(0.80%)	0.00%	2.80%
Effective rate	24.90%	16.10%	29.90%

Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets:
Net operating losses	$ 43,307	$ 36,236
Operating lease liabilities	12,583	18,023
Accrued expenses	12,862	10,050
Difference in basis of bond and loan costs	1,267	4,194
Stock-based compensation	2,787	2,882
Other	5,596	1,822
Total deferred tax assets	78,402	73,207
Valuation allowance	(38,463)	(36,422)
Total deferred tax assets net of valuation allowance	39,939	36,785
Deferred tax liabilities:
Deferred Tax Liabilities, Deferred Court Cost	0	(23,682)
Difference in basis of receivable portfolio	(20,806)	(57)
Right-of-use asset	(8,525)	(14,422)
Difference in basis of depreciable and amortizable assets	(13,863)	(3,680)
Prepaid expenses	(793)	(628)
Other	(1,682)	(4,559)
Total deferred tax liabilities	(45,669)	(47,028)
Deferred Tax Liabilities, Net, Total	$ (5,730)	$ (10,243)

Income Taxes - Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Reconciliation of Unrecognized Tax Benefits [Roll Forward]
Beginning Balance	$ 7,908	$ 18,552	$ 20,020
Increases related to prior year tax positions	6		256
Increases related to current year tax positions	574	4,442	1,958
Decrease related to expiration of statute of limitations	(827)	(2,493)	(3,221)
Decreases related to settlements with taxing authorities	(272)	(1,920)	(461)
Decreases related to prior year tax positions	(608)	(10,673)
Ending Balance	$ 6,781	$ 7,908	$ 18,552

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Taxes [Line Items]
Undistributed earnings	$ 71,300
Valuation allowance	38,463	$ 36,422
Unrecognized tax benefits, including penalties and interest	6,900	8,200	$ 19,900
Net tax benefit from unrecognized tax benefits, if recognized	6,500	7,600	13,000
Unrecognized tax benefits, income tax penalties and interest expense	200	2,700	$ 600
Unrecognized tax benefits, income tax penalties and interest accrued	200	$ 300
Deferred Tax Assets, Operating Loss Carryforwards, Foreign	$ 155,300
Tax Holiday Through 2026 \| Costa Rica
Income Taxes [Line Items]
Holiday tax rate	100.00%

Leases - Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease costs	$ 16,331	$ 19,450
Amortization of ROU assets	3,149	1,825
Interest on lease liabilities	420	563
Total lease costs	$ 19,900	$ 21,838

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease right-of-use assets	$ 72,164	$ 75,254
Finance lease ROU assets	12,410	9,133
Total lease ROU assets	$ 84,574	$ 84,387
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilities	us-gaap:OtherLiabilities
Operating Lease, Liability	$ 90,659	$ 93,847
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:DebtAndCapitalLeaseObligations	us-gaap:DebtAndCapitalLeaseObligations
Finance Lease, Liability	$ 8,288	$ 8,121
Total lease liabilities	$ 98,947	$ 101,968

Leases - Supplemental Lease Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Jan. 01, 2019
Leases [Abstract]
ROU assets obtained in exchange for new operating lease obligations	$ 8,990	$ 123,477
ROU assets obtained in exchange for new finance lease obligations	3,276	5,299
Operating leases - operating cash flows	17,396	14,874
Finance leases - operating cash flows	419	295
Finance leases - financing cash flows	$ 3,114	$ 1,898
Weighted-average remaining lease term, operating leases (years)	7 years 1 month 6 days	8 years 1 month 6 days
Weighted-average remaining lease term, finance leases (years)	2 years 6 months	3 years 1 month 6 days
Weighted-average discount rate, operating leases (percentage)	5.00%	5.30%
Weighted-average discount rate, finance leases (percentage)	4.60%	4.70%
Existing ROU Assets			$ 89,100

Leases - Schedule of Lease Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Finance Lease, Liability, Payment, Due [Abstract]
2021	$ 3,674
2022	3,410
2023	1,467
2024	241
2025	0
Thereafter	0
Total undiscounted lease payments	8,792
Less: imputed interest	(504)
Finance Lease, Liability, Total	8,288	$ 8,121
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2021	19,440
2022	15,872
2023	14,311
2024	14,474
2025	11,612
Thereafter	37,776
Total undiscounted lease payments	113,485
Less: imputed interest	(22,826)
Operating Lease, Liability, Total	90,659	93,847
Total Lease, 2021	23,114
Total Lease, 2022	19,282
Total Lease, 2023	15,778
Total Lease, 2024	14,715
Total Lease, 2025	11,612
Total Lease, Thereafter	37,776
Total undiscounted lease payments	122,277
Less: imputed interest	(23,330)
Total lease liabilities	$ 98,947	$ 101,968

Commitments and Contingencies - Narrative (Detail)		12 Months Ended
Commitments and Contingencies - Narrative (Detail)	Oct. 15, 2020 USD ($) consumer	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Loss Contingencies [Line Items]
Material reserves for legal matters		$ 0
Purchase price		157,400,000
Estimated fair value, liability		0
401(K) Expense Recognized		2,900,000	$ 2,800,000	$ 2,500,000
CFPB Stipulated Judgement
Loss Contingencies [Line Items]
Litigation settlement, amount awarded to other party	$ 15,000,000.0
Litigation settlement, amount of redress awarded to affected consumers	$ 9,000
Litigation settlement, number of affected consumers \| consumer	14
Litigation settlement, amount of redress previously voluntarily paid	$ 70,000
Litigation Settlement, Expense		$ 15,000,000.0

Segment Information - Narrative (Details)	12 Months Ended
Segment Information - Narrative (Details)	Dec. 31, 2020 segment
Segment Reporting [Abstract]
Number of reportable segments	1

Segment Information - Schedule of Geographical Areas of Which Company Operates (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Revenues, Adjusted by Net Allowances	$ 1,501,400	$ 1,397,681	$ 1,362,030
United States
Segment Reporting Information [Line Items]
Revenues, Adjusted by Net Allowances	992,916	817,693	709,493
Europe
Segment Reporting Information [Line Items]
Revenues, Adjusted by Net Allowances	490,385	520,433	556,265
Other geographies
Segment Reporting Information [Line Items]
Revenues, Adjusted by Net Allowances	$ 18,099	$ 59,555	$ 96,272

Segment Information - Schedule of Long-lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization	$ 127,297	$ 120,051
United States
Segment Reporting Information [Line Items]
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization	83,523	84,118
United Kingdom
Segment Reporting Information [Line Items]
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization	37,225	28,602
Other foreign countries
Segment Reporting Information [Line Items]
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization	6,549	7,331
International
Segment Reporting Information [Line Items]
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization	$ 43,774	$ 35,933

Goodwill and Identifiable Intangible Assets - Narrative (Details) - USD ($)	5 Months Ended	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill [Line Items]
Goodwill impairment	$ 10,700,000	$ 0	$ 10,718,000	$ 0
Amortization expense		8,000,000.0	$ 7,700,000	$ 11,700,000
MCM And Cabot
Goodwill [Line Items]
Goodwill impairment		$ 0

Goodwill and Identifiable Intangible Assets - Schedule of Activity in the Goodwill Balance (Details) - USD ($) $ in Thousands	5 Months Ended	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill [Roll Forward]
Balance as of beginning of period:		$ 884,185	$ 868,126
Goodwill impairment	$ (10,700)	0	(10,718)	$ 0
Effect of foreign currency translation		22,777	26,777
Balance as of end of period:	$ 884,185	$ 906,962	$ 884,185	$ 868,126

Goodwill and Identifiable Intangible Assets - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 78,488	$ 78,930
Accumulated Amortization	(33,476)	(27,559)
Total	45,012	51,371
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	66,796	67,897
Accumulated Amortization	(22,714)	(18,191)
Total	44,082	49,706
Developed technologies
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	5,048	4,734
Accumulated Amortization	(4,760)	(4,124)
Total	288	610
Trade name and other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	6,644	6,299
Accumulated Amortization	(6,002)	(5,244)
Total	$ 642	$ 1,055

Goodwill and Identifiable Intangible Assets - Weighted-Average Useful Lives of Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2020
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-average useful lives (in years)	10 years
Developed technologies
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-average useful lives (in years)	5 years
Trade name and other
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-average useful lives (in years)	7 years

Goodwill and Identifiable Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
2021	$ 6,746
2022	6,720
2023	6,361
2024	6,274
2025	6,226
Thereafter	12,685
Total	$ 45,012	$ 51,371