0001084961-24-000008 | 10-K | XBRL Viewer

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Income Taxes - Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Reconciliation of Unrecognized Tax Benefits [Roll Forward]
Beginning Balance	$ 3,988	$ 4,547	$ 6,781
Decrease related to prior year tax positions		(1,296)	(2,034)
Decrease related to settlements with taxing authorities		(713)
Decrease related to expiration of statute of limitations	(69)	(115)	(712)
Increase related to prior year tax positions	2,302	874	261
Increase related to current year tax positions	649	691	251
Other	91
Ending Balance	$ 6,961	$ 3,988	$ 4,547

Investment in Receivable Portfolios, Net - Summary of Changes in Balance of Investment in Receivable Portfolios (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Investment in Receivables Portfolio [Roll Forward]
Balance, beginning of period	$ 3,088,261
Negative allowance for expected recoveries - current period purchases	1,073,812	$ 800,507	$ 664,529
Collections applied to investment in receivable portfolios, net	(658,130)	(709,176)	(1,019,629)
Changes in recoveries	(82,530)	93,145	199,136
Put-backs and Recalls	(13,606)	(9,938)	(7,249)
Deconsolidation of receivable portfolios	0	0	(9,352)
Disposals and transfers to real estate owned	(7,957)	(8,335)	(8,071)
Foreign currency translation adjustments	68,582	(143,495)	(45,729)
Balance, end of period	3,468,432	3,088,261
Purchase price	1,073,812	800,507	664,529
Allowance for credit losses	3,430,036	2,332,112	1,823,582
Amortized cost	4,503,848	3,132,619	2,488,111
Noncredit discount	5,333,109	3,216,500	3,284,369
Face value	9,836,957	6,349,119	5,772,480
Write-off of amortized cost	(4,503,848)	(3,132,619)	(2,488,111)
Write-off of noncredit discount	(5,333,109)	(3,216,500)	(3,284,369)
Negative allowance	1,073,812	800,507	664,529
Negative allowance for expected recoveries - current period purchases	1,073,812	800,507	664,529
Collections applied to principal balance (debt purchasing)
Cash Collections	1,862,567	1,911,537	2,307,359
Less - amounts classified to revenue from receivable portfolios	(1,204,437)	(1,202,361)	(1,287,730)
Collections applied to investment in receivable portfolios, net	658,130	709,176	1,019,629
Changes in recoveries
Recoveries (below) above forecast	(33,405)	29,253	326,006
Changes in expected future recoveries	(49,125)	63,892	(126,870)
Changes in recoveries	(82,530)	93,145	199,136
Adjusted Balance
Investment in Receivables Portfolio [Roll Forward]
Balance, beginning of period	3,088,261	3,065,553	3,291,918
Balance, end of period	$ 3,468,432	$ 3,088,261	$ 3,065,553

Derivatives and Hedging Instruments

12 Months Ended

Dec. 31, 2023

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, 2023			December 31, 2022
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate cap contracts	Other assets	$	14,564	Other assets	$	36,807
Interest rate swap agreements	Other liabilities	(22,510)		—	—
Cross-currency swap agreements	Other assets	361		—	—
Cross-currency swap agreements	Other liabilities	(28,039)		Other liabilities	(36,918)
Derivatives not designated as hedging instruments:
Interest rate cap contracts	Other assets	2,386		—	—

Derivatives Designated as Hedging Instruments

The Company may periodically enter into interest rate swap agreements and interest rate cap contracts 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. Under the cap contracts, the Company receives floating interest rate payments and makes interest payments based on capped interest rates. The Company designates its interest rate swap and interest rate cap instruments as cash flow hedges at inception.

The Company uses cross-currency swap agreements to manage foreign currency exchange risk by converting fixed-rate Euro-denominated borrowings and fixed-rate GBP-denominated borrowings including periodic interest payments and the payment of principal at maturity to fixed-rate USD debt. The cross-currency swap agreements are accounted for as fair value hedges.

The following table summarizes the terms of the derivative instruments designated as hedging instruments as recorded in the Company’s consolidated statements of financial condition:

December 31, 2023

Effective date

Maturity Date

Hedge Designation

Notional Amount

Receive Floating Rate Index

Interest rate cap contracts

2019 Cap

January 2020

June 2024

Cash flow hedge

$441.5 million

3-month EURIBOR

2021 Cap(1)

November 2021

September 2024

Cash flow hedge

$318.3 million

SONIA

2024 Cap

September 2024

September 2026

Cash flow hedge

$324.6 million

SONIA

Interest rate swap agreements

2023 Euro IR Swap

October 2023

January 2028

Cash flow hedge

$110.4 million

3-month EURIBOR

2024 Euro IR Swaps

June 2024

January 2028

Cash flow hedge

$458.1 million

3-month EURIBOR

2023 SOFR IR Swaps

November 2023

October 2026

Cash flow hedge

$150.0 million

1-month SOFR CME Term

Cross-currency swap agreements

2020 Euro Swaps

September 2020

October 2025

Fair value hedge

$386.3 million

—

2023 GBP Swaps

July 2023

February 2026

Fair value hedge

$381.9 million

—

_______________________

(1)The total notional amount of the 2021 Cap was $445.6 million, of which $318.3 million was hedge designated and $127.3 million was not hedge designated as of December 31, 2023.

December 31, 2022

Effective date

Maturity Date

Hedge Designation

Notional Amount

Receive Floating Rate Index

Interest rate cap contracts

2019 Cap

January 2020

June 2024

Cash flow hedge

$428.9 million

3-month EURIBOR

2021 Cap

November 2021

September 2024

Cash flow hedge

$423.5 million

SONIA

Cross-currency swap agreements

2020 Euro Swaps

September 2020

October 2025

Cash flow hedge

$375.3 million

—

The Company expects to reclassify approximately $10.6 million of net derivative gain from OCI into earnings relating to its cash flow designated derivatives within the next 12 months.

The following table summarizes the effects of derivatives designated as hedging instruments in the Company’s consolidated financial statements (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,
	2023		2022		2021			2023		2022		2021


Interest rate swap agreements	$	(22,184)	$	—	$	(69)	Interest expense	$	325	$	—	$	(8,743)
Interest rate cap contracts	(22,820)		33,354		1,824		Interest expense	(1,856)		(653)		(568)
Cross-currency swap agreements	3,496		(27,617)		(33,464)		Interest expense	(5,057)		(7,601)		(4,984)
							Other income (expense)	5,886		(22,394)		(28,548)

Derivatives Not Designated as Hedging Instruments

In September 2023, the Company partially dedesignated the 2021 Cap. As a result of the partial dedesignation, the Company reclassified the existing deferred gain of approximately $3.7 million from accumulated other comprehensive loss into Other income (expense), net in its consolidated statements of operations for the year ended December 31, 2023. As of December 31, 2023, £100.0 million (approximately $127.3 million based on an exchange rate of $1.00 to £0.79 , the exchange rate as of December 31, 2023) of the notional amount of the 2021 Cap is not designated as hedging instrument for accounting purposes. Refer above for terms relating to the 2021 Cap.

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,
		2023		2022		2021
Foreign currency exchange contracts	Other expense	$	—	$	—	$	(20)
Interest rate cap contracts	Other expense	(556)		—		—
Interest rate swap agreements	Other expense	—		—		(73)

Derivatives and Hedging Instruments - Notional Amount (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
2019 Cap \| Designated as Hedging Instrument \| Cash flow hedge
Derivative [Line Items]
Notional Amount	$ 441.5	$ 428.9
2021 Cap
Derivative [Line Items]
Notional Amount	445.6
2021 Cap \| Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	318.3
2021 Cap \| Designated as Hedging Instrument \| Cash flow hedge
Derivative [Line Items]
Notional Amount	318.3	423.5
2021 Cap \| Not Designated as Hedging Instruments
Derivative [Line Items]
Notional Amount	127.3
2024 Cap \| Designated as Hedging Instrument \| Cash flow hedge
Derivative [Line Items]
Notional Amount	324.6
2023 Euro IR Swap \| Designated as Hedging Instrument \| Cash flow hedge
Derivative [Line Items]
Notional Amount	110.4
2024 Euro IR Swaps \| Designated as Hedging Instrument \| Cash flow hedge
Derivative [Line Items]
Notional Amount	458.1
2023 SOFR IR Swaps \| Designated as Hedging Instrument \| Cash flow hedge
Derivative [Line Items]
Notional Amount	150.0
2020 Euro Swaps \| Designated as Hedging Instrument \| Cash flow hedge
Derivative [Line Items]
Notional Amount		$ 375.3
2020 Euro Swaps \| Designated as Hedging Instrument \| Fair value hedge
Derivative [Line Items]
Notional Amount	386.3
2023 GBP Swaps \| Designated as Hedging Instrument \| Fair value hedge
Derivative [Line Items]
Notional Amount	$ 381.9

Derivatives and Hedging Instruments - Summary of Effects of Derivatives not Designated as Hedging Instruments (Details) - Other expense - Cash flow hedge - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Foreign currency exchange contracts
Derivative [Line Items]
Amount of Gain (Loss) Recognized in Income	$ 0	$ 0	$ (20)
Interest rate cap contracts
Derivative [Line Items]
Amount of Gain (Loss) Recognized in Income	(556)	0	0
Interest rate swap agreements
Derivative [Line Items]
Amount of Gain (Loss) Recognized in Income	$ 0	$ 0	$ (73)

Goodwill and Identifiable Intangible Assets - Schedule of Activity in the Goodwill Balance (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Goodwill [Roll Forward]
Goodwill, Beginning Balance	$ 821,214,000	$ 897,795,000	$ 906,962,000
Goodwill impairment	(238,200,000)	0	0
Effect of foreign currency translation	23,461,000	(76,581,000)	(9,167,000)
Goodwill, Ending Balance	606,475,000	821,214,000	897,795,000
MCM
Goodwill [Roll Forward]
Goodwill, Beginning Balance	148,936,000	148,936,000	148,936,000
Goodwill impairment	0
Effect of foreign currency translation	0	0	0
Goodwill, Ending Balance	148,936,000	148,936,000	148,936,000
Cabot
Goodwill [Roll Forward]
Goodwill, Beginning Balance	672,278,000	748,859,000	758,026,000
Goodwill impairment	(238,200,000)
Effect of foreign currency translation	23,461,000	(76,581,000)	(9,167,000)
Goodwill, Ending Balance	$ 457,539,000	$ 672,278,000	$ 748,859,000

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Income Taxes - Schedule of Effective Tax Rates (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Taxes [Line Items]
Federal Provision (as a percent)	21.00%	21.00%	21.00%
State Provision (as a percent)	(3.00%)	5.00%	2.30%
Change in valuation allowance (as a percent)	7.30%	13.20%	(2.30%)
Goodwill impairment (as a percent)	(0.283)	0	0
Taxable gain (deductible loss) in foreign jurisdiction (as a percent)	0.029	(0.027)	0
Forfeit benefit due to merger/liquidations (as a percent)	(0.147)	0	0
Other (as a percent)	0.30%	0.90%	(1.50%)
Effective rate (as a percent)	(14.50%)	37.40%	19.50%
Goodwill impairment	$ 238,200,000	$ 0	$ 0
Cabot
Income Taxes [Line Items]
Goodwill impairment	$ 238,200,000

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Pay vs Performance Disclosure
Net (loss) income attributable to Encore Capital Group, Inc. stockholders	$ (206,492)	$ 194,564	$ 350,782

- Definition

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

+ References

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-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

Borrowings - Encore Convertible Notes and Exchangeable Notes - Key Features (Details)		12 Months Ended
	Sep. 01, 2023 USD ($)	Dec. 31, 2023 USD ($) $ / shares	Apr. 01, 2023 $ / shares	Mar. 31, 2023 $ / shares
Exchangeable senior notes due September 2023 \| Exchangeable Notes Payable
Debt Instrument [Line Items]
Excess of if-converted value compared to principal \| $	$ 2,400,000
2025 Convertible Notes \| Convertible Notes
Debt Instrument [Line Items]
Initial conversion price (usd per share)		$ 40.00
Closing stock price at date of issuance (usd per share)		$ 32.00
Initial conversion rate (shares per $1,000 principal amount)		25.0000
Adjusted conversion rate (shares per $1,000 principal amount)		25.1310
Adjusted conversion price (usd per share)		$ 39.79
Adjusted effective conversion price (usd per share) \| $		$ 39.79
Excess of if-converted value compared to principal \| $		$ 27,540,000
2029 Convertible Notes \| Convertible Notes
Debt Instrument [Line Items]
Initial conversion price (usd per share)		$ 65.89	$ 82.69	$ 65.89
Closing stock price at date of issuance (usd per share)		$ 51.68
Initial conversion rate (shares per $1,000 principal amount)		15.1763
Adjusted conversion rate (shares per $1,000 principal amount)		15.1763
Adjusted conversion price (usd per share)		$ 65.89
Adjusted effective conversion price (usd per share) \| $		$ 82.69
Excess of if-converted value compared to principal \| $		$ 0

Income Taxes Income Taxes - Income Tax Provision for Continuing Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Current expense (benefit):
Federal	$ 59,558	$ 59,105	$ 33,582
State	17,677	11,803	5,787
Foreign	4,909	(893)	10,600
Total current income tax expense	82,144	70,015	49,969
Deferred expense (benefit):
Federal	(49,028)	8,142	49,512
State	(8,685)	6,290	5,904
Foreign	1,797	31,978	(20,045)
Total deferred income tax expense	(55,916)	46,410	35,371
Provision for income taxes	$ 26,228	$ 116,425	$ 85,340

Composition of Certain Financial Statement Items - Schedule of Property Plant and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 273,099	$ 269,054
Less: accumulated depreciation	(169,140)	(155,154)
Property and equipment, net	103,959	113,900
Depreciation and amortization expense	38,200	40,100	$ 42,200
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	187,549	209,803
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	34,720	34,950
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	19,962	20,155
Construction in process
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	28,639	2,546
Other
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 2,229	$ 1,600

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2023
Audit Information [Abstract]
Auditor Firm ID	243
Auditor Name	BDO USA, P.C.
Auditor Location	San Diego, California

Common Stock - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended		69 Months Ended
	Dec. 09, 2021	Dec. 31, 2022	Dec. 31, 2021	May 05, 2021	Nov. 04, 2021	Aug. 12, 2015
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount				$ 300,000		$ 50,000
Stock repurchase program, change in authorized amount				$ 250,000
Stock repurchased during period, value		$ 87,006	$ 390,606
Common Stock
Equity, Class of Treasury Stock [Line Items]
Stock repurchased during period, value		$ 15	$ 70
Treasury Stock, Common \| Common Stock
Equity, Class of Treasury Stock [Line Items]
Stock repurchased and retired during period, shares (in shares)		1,497,184	2,598,034
Stock repurchased during period, value		$ 86,900	$ 121,200
Tender Offer \| Common Stock
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount					$ 300,000
Stock repurchased and retired during period, shares (in shares)	4,471,995
Closing stock price at date of issuance (usd per share)	$ 60.00
Stock repurchased and retired during period, value	$ 268,300
Tender Offer \| Minimum \| Common Stock
Equity, Class of Treasury Stock [Line Items]
Closing stock price at date of issuance (usd per share)					$ 52.00
Tender Offer \| Maximum \| Common Stock
Equity, Class of Treasury Stock [Line Items]
Closing stock price at date of issuance (usd per share)					$ 60.00

Ownership, Description of Business, and Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Details)	Dec. 31, 2023
Furniture, fixtures and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	5 years
Furniture, fixtures and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	10 years
Computer hardware and software \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	3 years
Computer hardware and software \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	5 years

Segment Information and Geographic Information - Schedule of Long-lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Segment Reporting Information [Line Items]
Total	$ 170,978	$ 183,974
United States
Segment Reporting Information [Line Items]
Total	70,361	82,695
International
Segment Reporting Information [Line Items]
Total	100,617	101,279
United Kingdom
Segment Reporting Information [Line Items]
Total	62,309	58,034
India
Segment Reporting Information [Line Items]
Total	23,108	25,337
Other foreign countries
Segment Reporting Information [Line Items]
Total	$ 15,200	$ 17,908

Borrowings - Consolidated Debt and Capital Lease Obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Finance lease liabilities	$ 2,818	$ 5,675
Debt and finance lease liabilities, gross	3,358,547	2,941,225
Less: debt discount and issuance costs, net of amortization	(40,516)	(42,404)
Total	$ 3,318,031	$ 2,898,821
Finance Lease, Liability, Statement of Financial Position [Extensible List]	Total	Total
Revolving Credit Facility \| Global senior secured revolving credit facility
Debt Instrument [Line Items]
Long-term debt	$ 816,900
Encore private placement notes \| Encore private placement notes
Debt Instrument [Line Items]
Long-term debt	29,310	$ 68,390
Senior secured notes \| Senior secured notes
Debt Instrument [Line Items]
Long-term debt	1,654,989	1,485,888
Convertible notes and exchangeable notes \| Convertible notes and exchangeable notes
Debt Instrument [Line Items]
Long-term debt	330,000	272,500
Credit Facility \| Global senior secured revolving credit facility
Debt Instrument [Line Items]
Long-term debt	816,880	661,738
Credit Facility \| Cabot securitisation senior facility
Debt Instrument [Line Items]
Long-term debt	324,646	423,522
Credit Facility \| U.S. facility
Debt Instrument [Line Items]
Long-term debt	175,000	0
Other
Debt Instrument [Line Items]
Long-term debt	$ 24,904	$ 23,512

Leases (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Lease cost

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


	Year Ended December 31,
	2023		2022		2021
Operating lease costs(1)	$	15,102	$	18,403	$	17,272
Finance lease costs
Amortization of ROU assets	2,804		4,296		3,848
Interest on lease liabilities	168		312		419
Total lease costs	$	18,074	$	23,011	$	21,539

________________________

(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.

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, 2023		December 31, 2022
Assets
Operating lease ROU assets	Other assets	$	67,019	$	70,074
Finance lease ROU assets	Property and equipment, net	18,571		18,337
Total lease ROU assets		$	85,590	$	88,411

Liabilities
Operating lease liabilities	Other liabilities	$	81,467	$	83,598
Finance lease liabilities	Borrowings	2,818		5,675
Total lease liabilities		$	84,285	$	89,273

Lease term and discount rate were as follows:


	December 31, 2023		December 31, 2022		December 31, 2021
Weighted-average remaining lease term (in years)
Operating leases	5.7		5.9		6.2
Finance leases	1.6		2.1		2.0
Weighted-average discount rate
Operating leases	5.4	%	5.2	%	5.2	%
Finance leases	4.1	%	3.9	%	4.6	%

Supplemental lease information

Supplemental lease information is summarized below (in thousands):


	Year Ended December 31,
	2023		2022		2021
ROU assets obtained in exchange for new operating lease obligations	$	12,772	$	22,582	$	13,426
ROU assets obtained in exchange for new finance lease obligations	234		3,273		2,664
Cash paid for amounts included in the measurement of lease liabilities
Operating leases - operating cash flows	17,195		19,227		20,048
Finance leases - operating cash flows	165		312		419
Finance leases - financing cash flows	3,032		4,622		3,950

Lease maturities

Maturities of lease liabilities under non-cancelable leases as of December 31, 2023 are summarized as follows (in thousands):


	Finance Leases		Operating Leases		Total
2024	$	2,013	$	17,941	$	19,954
2025	783		17,010		17,793
2026	84		16,173		16,257
2027	42		13,502		13,544
2028	—		11,423		11,423
Thereafter	—		19,417		19,417
Total undiscounted lease payments	2,922		95,466		98,388
Less: imputed interest	(104)		(13,999)		(14,103)
Total lease liabilities	$	2,818	$	81,467	$	84,285

Lease maturities

Maturities of lease liabilities under non-cancelable leases as of December 31, 2023 are summarized as follows (in thousands):


	Finance Leases		Operating Leases		Total
2024	$	2,013	$	17,941	$	19,954
2025	783		17,010		17,793
2026	84		16,173		16,257
2027	42		13,502		13,544
2028	—		11,423		11,423
Thereafter	—		19,417		19,417
Total undiscounted lease payments	2,922		95,466		98,388
Less: imputed interest	(104)		(13,999)		(14,103)
Total lease liabilities	$	2,818	$	81,467	$	84,285

Derivatives and Hedging Instruments - Effects of Derivatives in Cash Flow Hedging Relationships (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Derivative [Line Items]
Gain (Loss) Recognized in OCI	$ (39,587)	$ 35,978	$ 10,670
Designated as Hedging Instrument \| Interest rate swap agreements \| Cash flow hedge \| Interest Expense
Derivative [Line Items]
Gain (Loss) Recognized in OCI	(22,184)	0	(69)
Gain (Loss) Reclassified from OCI into Income	325	0	(8,743)
Designated as Hedging Instrument \| Interest rate cap contracts \| Cash flow hedge \| Interest Expense
Derivative [Line Items]
Gain (Loss) Recognized in OCI	(22,820)	33,354	1,824
Gain (Loss) Reclassified from OCI into Income	(1,856)	(653)	(568)
Designated as Hedging Instrument \| Cross-currency swap agreements \| Cash flow hedge \| Interest Expense
Derivative [Line Items]
Gain (Loss) Reclassified from OCI into Income		(7,601)	(4,984)
Designated as Hedging Instrument \| Cross-currency swap agreements \| Cash flow hedge \| Other expense
Derivative [Line Items]
Gain (Loss) Reclassified from OCI into Income		(22,394)	(28,548)
Designated as Hedging Instrument \| Cross-currency swap agreements \| Cash flow hedge \| Interest Expense / Other Income (Expense)
Derivative [Line Items]
Gain (Loss) Recognized in OCI		$ (27,617)	$ (33,464)
Designated as Hedging Instrument \| Cross-currency swap agreements \| Fair value hedge \| Interest Expense
Derivative [Line Items]
Gain (Loss) Reclassified from OCI into Income	(5,057)
Designated as Hedging Instrument \| Cross-currency swap agreements \| Fair value hedge \| Other expense
Derivative [Line Items]
Gain (Loss) Reclassified from OCI into Income	5,886
Designated as Hedging Instrument \| Cross-currency swap agreements \| Fair value hedge \| Interest Expense / Other Income (Expense)
Derivative [Line Items]
Gain (Loss) Recognized in OCI	$ 3,496

Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands	Total	Cumulative adjustment	Common Stock	Additional Paid-In Capital	Additional Paid-In Capital Cumulative adjustment	Accumulated Earnings	Accumulated Earnings Cumulative adjustment	Accumulated Other Comprehensive (Loss) Income	Noncontrolling Interest
Balance at beginning of period (in shares) at Dec. 31, 2020			31,345
Balance at beginning of period at Dec. 31, 2020	$ 1,220,076	$ (17,914)	$ 313	$ 230,440	$ (40,372)	$ 1,055,668	$ 22,458	$ (68,813)	$ 2,468
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	351,201					350,782			419
Other comprehensive loss, net of tax	(4,639)							(4,639)
Purchase of noncontrolling interest	(5,556)			(2,669)					(2,887)
Issuance/exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes (in shares)			266
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes	(5,535)		$ 2	(5,537)
Repurchase and retirement of common stock (in shares)			(7,070)
Repurchase and retirement of common stock	(390,606)		$ (70)	(200,192)		(190,344)
Stock-based compensation	18,330			18,330
Removal of other comprehensive loss in connection with divestiture	19,904							19,904
Balance at end of period (in shares) at Dec. 31, 2021			24,541
Balance at end of period at Dec. 31, 2021	1,185,261		$ 245	0		1,238,564		(53,548)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	194,564					194,564
Other comprehensive loss, net of tax	(45,268)							(45,268)
Issuance/exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes (in shares)			279
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes	(11,380)		$ 3	(3,949)		(7,434)
Repurchase and retirement of common stock (in shares)			(1,497)
Repurchase and retirement of common stock	(87,006)		$ (15)	(10,659)		(76,332)
Stock-based compensation	15,402			15,402
Settlement of convertible senior notes	(71,152)					(71,152)
Other	(794)			(794)
Balance at end of period (in shares) at Dec. 31, 2022			23,323
Balance at end of period at Dec. 31, 2022	1,179,627		$ 233	0		1,278,210		(98,816)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(206,492)					(206,492)
Other comprehensive loss, net of tax	(25,104)							(25,104)
Issuance/exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes (in shares)			222
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes	(5,106)		$ 2	(5,108)
Stock-based compensation	13,854			13,854
Purchase of capped call options, net of tax effect	(13,865)			(13,865)
Unwind of the existing capped call options	30,913			30,913
Settlement of convertible senior notes	(37,289)			(14,742)		(22,547)
Balance at end of period (in shares) at Dec. 31, 2023			23,545
Balance at end of period at Dec. 31, 2023	$ 936,538		$ 235	$ 11,052		$ 1,049,171		$ (123,920)	$ 0

Derivatives and Hedging Instruments - Schedule of Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Derivative [Line Items]
Derivative instruments	$ (17,311)	$ (36,807)
Interest rate cap contracts
Derivative [Line Items]
Derivative instruments	(16,950)	(36,807)
Cross-currency swap agreements
Derivative [Line Items]
Cross-currency swap agreements	(28,039)	(36,918)
Cross-currency swap agreements	361
Designated as Hedging Instrument \| Other assets \| Interest rate cap contracts
Derivative [Line Items]
Derivative instruments	(14,564)	(36,807)
Designated as Hedging Instrument \| Other assets \| Cross-currency swap agreements
Derivative [Line Items]
Cross-currency swap agreements	361
Designated as Hedging Instrument \| Other liabilities \| Cross-currency swap agreements
Derivative [Line Items]
Cross-currency swap agreements	(28,039)	$ (36,918)
Designated as Hedging Instrument \| Other liabilities \| Interest rate swap agreements
Derivative [Line Items]
Derivative instruments	(22,510)
Not Designated as Hedging Instruments \| Other assets \| Interest rate cap contracts
Derivative [Line Items]
Derivative instruments	$ (2,386)

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

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

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 variable interest entities (“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 7: 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

Reclassification

The Company made immaterial reclassifications to the prior year’s consolidated financial statements to conform to current year presentation. The Company presented impairment of intangible assets within the depreciation and amortization expense line item in the consolidated statements of income on its Form 10-K for the year ended December 31, 2022, and has reclassed such impairment charge as a single line item in the Company’s consolidated statements of operations on this Form 10-K for the year ended December 31, 2023. The Company made the same reclassification to its consolidated statements of cash flows accordingly. The reclassifications have no effect on net income, total assets, or accumulated earnings as previously reported.

Recently Adopted Accounting Pronouncements and Recent Accounting Standards or Updates Not Yet Effective

Recently Adopted Accounting Pronouncements

There were no recently adopted accounting pronouncements.

Recent Accounting Standards or Updates Not Yet Effective

In August 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standard Update (“ASU”) 2023-05, Business Combinations - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement, which addresses the accounting by a joint venture for contributions received upon its formation (“ASU 2023-05”). ASU 2023-05 requires joint ventures to measure all assets and liabilities upon formation at fair value. This guidance will be applied prospectively to all joint venture formations with a formation date on or after January 1, 2025. This amendment would only impact the Company upon adoption if, in the future, it entered into an applicable transaction.

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative, to amend certain disclosure and presentation requirements for a variety of topics within the Accounting Standards Codification (“ASC”). These amendments align the requirements in the ASC to the removal of certain disclosure requirements set out in Regulation S-X and Regulation S-K, announced by the SEC. The effective date for each amended topic in the ASC is either the date on which the SEC’s removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, or on June 30, 2027, if the SEC has not removed the requirements by that date. Early adoption is prohibited. The Company is currently evaluating the potential impact, but we do not expect the adoption of this guidance to have a material impact on its consolidated financial statements and related disclosures.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within the segment measure of profit or loss. This guidance will be applied retrospectively and is effective for annual reporting periods in fiscal years beginning after December 15, 2023, and interim reporting periods in fiscal years beginning after December 31, 2024. This ASU will likely result in additional required disclosure when adopted. The Company is currently evaluating the provisions of this ASU and the impact on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions and applies to all entities subject to income taxes. The new standard is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures.

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. On an ongoing basis, the Company evaluates significant estimates, including estimated future recoveries on its investment in receivable portfolios, fair value of goodwill, and income taxes, among others. The Company bases its estimates on assumptions, both historical and forward looking, that are believed to be reasonable. 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.

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

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 the accounting standard for Financial Instruments - Credit Losses (“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. 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. Debt purchasing revenue includes two components:

(1) Revenue from receivable portfolios, which is the accretion of the discount on the negative allowance due to the passage of time (generally the portfolio balance multiplied by the EIR) and also includes all revenue from zero basis portfolio (“ZBA”) collections, and

(2) Changes in recoveries, which includes

(a) Recoveries above or below forecast, which is the difference between (i) actual cash collected/recovered during the current period and (ii) expected cash recoveries for the current period, which generally represents over or under performance for the period; and

(b) Changes in expected future recoveries, which is the present value change of expected future recoveries, where such change generally results from (i) collections “pulled forward from” or “pushed out to” future periods (i.e. amounts either collected early or expected to be collected later) and (ii) magnitude and timing changes to estimates of expected future collections (which can be increases or decreases).

The Company measures expected future recoveries based on historical experience, current conditions, reasonable and supportable forecasts, and other quantitative and qualitative factors. 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 the Company’s collection staff. External factors that may have an impact on the Company’s collections include new laws or regulations, new interpretations of existing laws or regulations, and macroeconomic conditions.

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 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.

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 15: 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.

Real Estate Owned

Real estate-owned assets, or REO assets, represent real estate assets acquired when (1) the Company takes possession of the underlying real estate assets of non-performing secured mortgage portfolio previously purchased or (2) when the Company purchases real estate assets. Upon repossession or foreclosure, the Company initially records the property received at its fair value less costs to sell. Subsequent to acquisition, REO is carried at the lower of cost or fair value, less estimated selling costs. Management performs valuations at each reporting period end using Level 3 measurements based on appraised values using market comparables and a valuation allowance is established by a charge to income for any excess of the carrying value over the fair value, less estimated costs to sell the property. The REOs are generally acquired at deeply discounted values and therefore the valuation allowances associated with these assets are immaterial. Recoveries in fair value during the holding period are recognized until the valuation allowance is reduced to zero. Proceeds received in excess of the carrying value of the REO and any associated direct selling costs are recorded as other revenues within the Company’s consolidated statements of operations. Costs related to holding and maintaining the property are charged to operating expenses.

Leases

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 Company elected not to apply the recognition requirements to short-term leases and not to separate non-lease components from lease components for operating leases.

Income Taxes

The provision for income taxes is estimated using the asset and liability method of accounting for income taxes, under which deferred tax assets and liabilities are recognized based on temporary differences between the financial statement and income tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the years in which the differences are expected to be realized or settled. At each reporting date, the Company considers new evidence, both positive and negative, that could affect future realization of deferred tax assets including historical earnings, taxable income in prior carryback years if permitted under tax law, projections of future income, timing of reversing temporary differences and the implementation of feasible and prudent tax planning strategies. In the event that it is more likely than not that all or part of the deferred tax assets are determined not to be realizable in the future, the Company would establish or increase a valuation allowance in the period such determination is made, with a corresponding charge to earnings. In the event the Company realizes deferred tax assets that were previously determined to be unrealizable, the Company would release or decrease the respective valuation allowance, with a corresponding positive adjustment to earnings. The calculation of tax liabilities involves significant judgement in estimating the impact and timing of resolution of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with the Company’s expectations could have a material impact on the Company’s results of operation and financial position. The Company records liabilities related to uncertain tax positions when it believes that it is more likely than not that those positions may not be fully sustained upon review by tax authorities, despite its belief that those tax return positions are supportable. The Company includes interest and penalties related to income taxes within its provision for income taxes. See “Note 11: Income Taxes” for further discussion.

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 10: 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 derivative instruments as cash flow hedges or fair value hedges based on the intended use of the derivative. The changes in fair value of derivatives designated as fair value hedges is recorded each period in other income (expense) with the offsetting changes in fair value of the hedged item attributed to the risk being hedged. Changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value of the hedged item are recognized immediately in current earnings. 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.

Income or Loss Per Share

Basic income or loss per share is calculated by dividing net income or loss attributable to Encore by the weighted average number of shares of common stock outstanding during the period.

The number of shares used to calculate the diluted earnings per share is computed by using the basic weighted-average number of common shares outstanding plus any potentially dilutive potential common shares outstanding during the period, except when their effect is anti-dilutive. Dilutive potential common shares include outstanding stock based awards, and the dilutive effect of the convertible and exchangeable senior notes, if applicable.

The Company adopted ASU 2020-06 on January 1, 2021, using a modified retrospective approach. Effective January 1, 2021, the dilutive effect of the Company’s convertible and exchangeable notes is calculated using the if-converted method. Prior to the adoption, the dilutive effect of the convertible and exchangeable notes was calculated using the treasury stock method. In September 2021, in accordance with the indenture for the convertible senior notes due in March 2022, the Company irrevocably elected cash settlement for these notes. As a result, the convertible senior notes due in March 2022 were only dilutive prior to September 15, 2021. All of the Company’s other convertible and exchangeable notes require net share settlement, using the if-converted method results in a similar dilutive effect as using the treasury stock method under the previous accounting standard, due to the fact that only in-the-money shares are included in the dilutive effect.

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.

The Company's cash and cash equivalents, certain other current assets, accounts payable and accrued liabilities, and other current liabilities approximate their fair values due to their short-term nature, which are determined to be a Level 1 measurement.

Variable Interest Entity

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 residual returns 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, 2023, 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 including the ability to exercise discretion in the servicing of the financial assets and has the right to receive residual returns that could potentially be significant to the VIEs. The Company’s exposure to loss is limited to the total of the carrying value of the VIEs. 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.

Segment Reporting

The Company conducts business through several operating segments. The Company’s Chief Operating Decision Maker 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.

Goodwill

The Company’s 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 applies various valuation techniques to estimate the fair value of each reporting unit when performing a quantitative impairment test, including the income approach and the market approach. Under the income approach, the Company uses a discounted cash flow method, or DCF, to estimate the fair value of a reporting unit. In applying the DCF method, an identified level of future cash flow is estimated. The cash flow projections are based on five-year financial forecasts developed by management that include purchasing volume, collections forecasts, capital spending trends, and cost assumptions to support anticipated growth, which are updated annually and reviewed by management. The value of the net cash flows beyond the fifth year (the “Terminal Year”) is determined by applying a market multiple to the projected estimated remaining collections. Annual estimated cash flows and a Terminal Year value are then discounted to their present value at an appropriate discount rate to obtain an indication of fair value. The Company bases the discount rate on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the reporting unit’s ability to execute on the projected cash flows. Because DCF analyses are based on management’s long-term financial projections and require significant estimates and judgments, the market approach is conducted in addition to the income approach in estimating the fair value of a reporting unit. Under the market approach, the Company uses both a Guideline Public Company Method and Guideline Merged & Acquired Company method to estimate the fair value of equity and the business enterprise value of a reporting unit. The Guideline Public Company approach uses financial metrics from similar public traded companies to estimate fair value. The Guideline Merged and Acquired Company method calculates fair value by analyzing the actual prices paid for recent mergers and acquisitions in the industry. The fair value estimate of the Company’s reporting units was derived primarily from the income approach, and to a lesser extent, the market approach as described above. 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.

Management continues to evaluate and monitor all key factors impacting the carrying value of the Company’s recorded goodwill and intangible assets. 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.

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Operating activities:
Net (loss) income	$ (206,492,000)	$ 194,564,000	$ 351,201,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	41,737,000	46,419,000	50,079,000
Other non-cash interest expense, net	17,160,000	15,875,000	17,785,000
Stock-based compensation expense	13,854,000	15,402,000	18,330,000
Deferred income taxes	(55,916,000)	46,410,000	35,371,000
Goodwill impairment	238,200,000	0	0
Impairment of intangible assets	18,726,000	4,075,000	0
Changes in recoveries	82,530,000	(93,145,000)	(199,136,000)
Other, net	(2,259,000)	18,798,000	26,430,000
Changes in operating assets and liabilities
Other assets	15,894,000	(6,722,000)	38,941,000
Accounts payable, accrued liabilities and other liabilities	(10,443,000)	(30,995,000)	(35,948,000)
Net cash provided by operating activities	152,991,000	210,681,000	303,053,000
Investing activities:
Purchases of receivable portfolios, net of put-backs	(1,060,206,000)	(790,569,000)	(657,280,000)
Collections applied to investment in receivable portfolios, net	658,130,000	709,176,000	1,019,629,000
Purchases of real estate owned	(26,901,000)	(39,340,000)	(17,090,000)
Purchases of property and equipment	(24,807,000)	(37,224,000)	(33,372,000)
Proceeds from sale of real estate owned	52,636,000	27,722,000	31,159,000
Other, net	(793,000)	0	(3,150,000)
Net cash (used in) provided by investing activities	(401,941,000)	(130,235,000)	339,896,000
Financing activities:
Payment of loan and debt refinancing costs	(13,707,000)	(1,659,000)	(11,963,000)
Proceeds from credit facilities	1,196,046,000	779,513,000	821,931,000
Repayment of credit facilities	(989,627,000)	(515,703,000)	(896,418,000)
Proceeds from senior secured notes	104,188,000	0	353,747,000
Repayment of senior secured notes	(39,080,000)	(39,080,000)	(359,175,000)
Proceeds from issuance of convertible senior notes	230,000,000	0	0
Repayment of convertible senior notes	(212,480,000)	(221,153,000)	(161,000,000)
Repurchase and retirement of common stock	0	(87,006,000)	(390,606,000)
Other, net	(7,040,000)	(22,357,000)	(12,208,000)
Net cash provided by (used in) financing activities	268,300,000	(107,445,000)	(655,692,000)
Net increase (decrease) in cash and cash equivalents	19,350,000	(26,999,000)	(12,743,000)
Effect of exchange rate changes on cash and cash equivalents	(4,898,000)	(18,734,000)	13,204,000
Cash and cash equivalents, beginning of period	143,912,000	189,645,000	189,184,000
Cash and cash equivalents, end of period	158,364,000	143,912,000	189,645,000
Supplemental disclosures of cash flow information:
Cash paid for interest	163,815,000	131,391,000	132,400,000
Cash paid for income taxes, net of refunds	68,522,000	71,276,000	42,039,000
Supplemental schedule of non-cash investing and financing activities:
Investment in receivable portfolios transferred to real estate owned	7,957,000	1,903,000	768,000
Property and equipment acquired through finance leases	$ 234,000	$ 3,273,000	$ 2,664,000

Consolidated Statements of Financial Condition (Parenthetical) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Convertible preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Convertible preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Convertible preferred stock, shares issued (in shares)	0	0
Convertible preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	75,000,000	75,000,000
Common stock, shares issued (in shares)	23,545,000	23,323,000
Common stock, shares outstanding (in shares)	23,545,000	23,323,000

Segment Information and Geographic Information - Schedule of Geographical Areas of Which Company Operates (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Total	$ 1,222,680	$ 1,398,347	$ 1,614,499
United States
Segment Reporting Information [Line Items]
Total	792,443	995,470	1,115,572
Total Europe
Segment Reporting Information [Line Items]
Total	429,867	402,699	486,530
United Kingdom
Segment Reporting Information [Line Items]
Total	295,566	272,962	344,214
Other European countries
Segment Reporting Information [Line Items]
Total	134,301	129,737	142,316
Other geographies
Segment Reporting Information [Line Items]
Total	$ 370	$ 178	$ 12,397

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023
	Level 1		Level 2		Level 3		Total
Assets

Interest rate cap contracts	$	—	$	16,950	$	—	$	16,950
Cross-currency swap agreements	—		361		—		361
Liabilities

Interest rate swap agreements	—		(22,510)		—		(22,510)
Cross-currency swap agreements	—		(28,039)		—		(28,039)


	Fair Value Measurements as of December 31, 2022
	Level 1		Level 2		Level 3		Total
Assets


Interest rate cap contracts	$	—	$	36,807	$	—	$	36,807
Liabilities

Cross-currency swap agreements	—		(36,918)		—		(36,918)

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, 2022, and 2021 (in thousands):


	Amount




Balance as of December 31, 2020	$	2,957
Issuance of contingent consideration in connection with purchase of noncontrolling interest	2,913
Change in fair value of contingent consideration	(388)
Payment of contingent consideration	(180)
Effect of foreign currency translation	(84)
Balance as of December 31, 2021	5,218

Change in fair value of contingent consideration	794
Payment of contingent consideration	(5,273)
Effect of foreign currency translation	(739)
Balance as of December 31, 2022	$	—

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

The carrying amounts in the following table are included in the consolidated statements of financial condition as of December 31, 2023 and December 31, 2022 (in thousands):


	December 31, 2023				December 31, 2022
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial Assets
Investment in receivable portfolios, net	$	3,468,432	$	3,515,651	$	3,088,261	$	3,242,506

Financial Liabilities
Global senior secured revolving credit facility	816,880		816,880		661,738		661,738
Encore private placement notes	29,310		28,922		68,390		66,947
Senior secured notes(1)	1,649,621		1,598,636		1,480,258		1,334,686
Exchangeable senior notes due September 2023	—		—		172,500		205,227
Convertible senior notes due October 2025	100,000		136,403		100,000		130,556
Convertible senior notes due March 2029	230,000		226,794		—		—
Cabot securitisation senior facility	324,646		324,646		423,522		423,522
U.S. facility	175,000		175,000		—		—
Other borrowings	24,904		24,904		23,512		23,512

________________________

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

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

12 Months Ended

Dec. 31, 2023

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 in Europe.

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 the United Kingdom. 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.”

Basis of Consolidation

Translation of Foreign Currencies

Reclassification

Recently Adopted Accounting Pronouncements

There were no recently adopted accounting pronouncements.

Recent Accounting Standards or Updates Not Yet Effective

Use of Estimates

Cash and Cash Equivalents

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 $16.0 million and $17.8 million as of December 31, 2023 and 2022, respectively.

Investment in Receivable Portfolios

Revenue is recognized for each static pool over the economic life of the pool. Debt purchasing revenue includes two components:

(2) Changes in recoveries, which includes

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

Real Estate Owned

Leases

The Company elected not to apply the recognition requirements to short-term leases and not to separate non-lease components from lease components for operating leases.

Income Taxes

Stock-Based Compensation

Derivative Instruments and Hedging Activities

Concentration of Supply Risk

Income or Loss Per Share

Basic income or loss per share is calculated by dividing net income or loss attributable to Encore by the weighted average number of shares of common stock outstanding during the period.

A reconciliation of shares used in calculating income or loss per basic and diluted shares follows (in thousands, except per share amounts):


	Year Ended December 31,
	2023		2022		2021



Net (loss) income attributable to Encore Capital Group, Inc.	$	(206,492)	$	194,564	$	350,782

Total weighted-average basic shares outstanding	23,670		24,142		30,129
Dilutive effect of stock-based awards	—		344		407
Dilutive effect of convertible and exchangeable senior notes	—		1,606		617
Total weighted-average dilutive shares outstanding	23,670		26,092		31,153




Basic (loss) income per share	$	(8.72)	$	8.06	$	11.64



Diluted (loss) income per share	$	(8.72)	$	7.46	$	11.26

Anti-dilutive employee stock options outstanding were negligible during the years ended December 31, 2023, 2022, and 2021.

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accumulated Other Comprehensive Income [Roll Forward]
Balance at beginning of period	$ 1,179,627	$ 1,185,261	$ 1,220,076
Balance at end of period	936,538	1,179,627	1,185,261
Derivatives
Accumulated Other Comprehensive Income [Roll Forward]
Balance at beginning of period	36,494	516	(10,154)
Other comprehensive income (loss) before reclassification	(41,508)	5,737	(31,709)
Reclassification	(2,970)	30,648	44,544
Removal of OCI in connection with divestiture			0
Tax effect	4,891	(407)	(2,165)
Balance at end of period	(3,093)	36,494	516
Currency Translation Adjustments
Accumulated Other Comprehensive Income [Roll Forward]
Balance at beginning of period	(135,310)	(54,064)	(58,659)
Other comprehensive income (loss) before reclassification	15,376	(78,232)	(15,309)
Reclassification	0	0	0
Removal of OCI in connection with divestiture			19,904
Tax effect	(893)	(3,014)	0
Balance at end of period	(120,827)	(135,310)	(54,064)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income [Roll Forward]
Balance at beginning of period	(98,816)	(53,548)	(68,813)
Other comprehensive income (loss) before reclassification	(26,132)	(72,495)	(47,018)
Reclassification	(2,970)	30,648	44,544
Removal of OCI in connection with divestiture			19,904
Tax effect	3,998	(3,421)	(2,165)
Balance at end of period	$ (123,920)	$ (98,816)	$ (53,548)

- Definition

Amount of tax expense (benefit) allocated to other comprehensive income (loss).

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 45
-Paragraph 12
-SubTopic 10
-Topic 220
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-12

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
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-URI https://asc.fasb.org//1943274/2147482659/740-20-45-2

+ Details

- Definition

Amount of equity (deficit) attributable to parent and noncontrolling interest. Excludes temporary equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Variable Interest Entities	12 Months Ended
Variable Interest Entities	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Variable Interest Entities	Note 7: 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 residual returns 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, 2023, 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 including the ability to exercise discretion in the servicing of the financial assets and has the right to receive residual returns that could potentially be significant to the VIEs. The Company’s exposure to loss is limited to the total of the carrying value of the VIEs. 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.

Derivatives and Hedging Instruments (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023			December 31, 2022
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate cap contracts	Other assets	$	14,564	Other assets	$	36,807
Interest rate swap agreements	Other liabilities	(22,510)		—	—
Cross-currency swap agreements	Other assets	361		—	—
Cross-currency swap agreements	Other liabilities	(28,039)		Other liabilities	(36,918)
Derivatives not designated as hedging instruments:
Interest rate cap contracts	Other assets	2,386		—	—

Schedule of Derivative Instruments

The following table summarizes the terms of the derivative instruments designated as hedging instruments as recorded in the Company’s consolidated statements of financial condition:

December 31, 2023

Effective date

Maturity Date

Hedge Designation

Notional Amount

Receive Floating Rate Index

Interest rate cap contracts

2019 Cap

January 2020

June 2024

Cash flow hedge

$441.5 million

3-month EURIBOR

2021 Cap(1)

November 2021

September 2024

Cash flow hedge

$318.3 million

SONIA

2024 Cap

September 2024

September 2026

Cash flow hedge

$324.6 million

SONIA

Interest rate swap agreements

2023 Euro IR Swap

October 2023

January 2028

Cash flow hedge

$110.4 million

3-month EURIBOR

2024 Euro IR Swaps

June 2024

January 2028

Cash flow hedge

$458.1 million

3-month EURIBOR

2023 SOFR IR Swaps

November 2023

October 2026

Cash flow hedge

$150.0 million

1-month SOFR CME Term

Cross-currency swap agreements

2020 Euro Swaps

September 2020

October 2025

Fair value hedge

$386.3 million

—

2023 GBP Swaps

July 2023

February 2026

Fair value hedge

$381.9 million

—

_______________________

(1)The total notional amount of the 2021 Cap was $445.6 million, of which $318.3 million was hedge designated and $127.3 million was not hedge designated as of December 31, 2023.

December 31, 2022

Effective date

Maturity Date

Hedge Designation

Notional Amount

Receive Floating Rate Index

Interest rate cap contracts

2019 Cap

January 2020

June 2024

Cash flow hedge

$428.9 million

3-month EURIBOR

2021 Cap

November 2021

September 2024

Cash flow hedge

$423.5 million

SONIA

Cross-currency swap agreements

2020 Euro Swaps

September 2020

October 2025

Cash flow hedge

$375.3 million

—

Effects of Derivatives in Cash Flow Hedging Relationships

The following table summarizes the effects of derivatives designated as hedging instruments in the Company’s consolidated financial statements (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,
	2023		2022		2021			2023		2022		2021


Interest rate swap agreements	$	(22,184)	$	—	$	(69)	Interest expense	$	325	$	—	$	(8,743)
Interest rate cap contracts	(22,820)		33,354		1,824		Interest expense	(1,856)		(653)		(568)
Cross-currency swap agreements	3,496		(27,617)		(33,464)		Interest expense	(5,057)		(7,601)		(4,984)
							Other income (expense)	5,886		(22,394)		(28,548)

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,
		2023		2022		2021
Foreign currency exchange contracts	Other expense	$	—	$	—	$	(20)
Interest rate cap contracts	Other expense	(556)		—		—
Interest rate swap agreements	Other expense	—		—		(73)

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References + Details

Leases - Supplemental Lease Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
ROU assets obtained in exchange for new operating lease obligations	$ 12,772	$ 22,582	$ 13,426
ROU assets obtained in exchange for new finance lease obligations	234	3,273	2,664
Operating leases - operating cash flows	17,195	19,227	20,048
Finance leases - operating cash flows	165	312	419
Finance leases - financing cash flows	$ 3,032	$ 4,622	$ 3,950

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Components of Pretax Income

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


	Year Ended December 31,
	2023		2022		2021
US	$	61,356	$	331,009	$	390,607
Foreign	(241,620)		(20,020)		45,934
Total (loss) income before provision for income taxes	$	(180,264)	$	310,989	$	436,541

Components of Provision for Income Taxes

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


	Year Ended December 31,
	2023		2022		2021
Current expense (benefit):
Federal	$	59,558	$	59,105	$	33,582
State	17,677		11,803		5,787
Foreign	4,909		(893)		10,600
	82,144		70,015		49,969
Deferred expense (benefit):
Federal	(49,028)		8,142		49,512
State	(8,685)		6,290		5,904
Foreign	1,797		31,978		(20,045)
	(55,916)		46,410		35,371
Provision for income taxes	$	26,228	$	116,425	$	85,340

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,
	2023		2022		2021
Federal provision	21.0	%	21.0	%	21.0	%
State provision	(3.0)	%	5.0	%	2.3	%



Change in valuation allowance (1)	7.3	%	13.2	%	(2.3)	%
Goodwill impairment (2)	(28.3)	%	—	%	—	%
Taxable gain (deductible loss) in foreign jurisdiction (3)	2.9	%	(2.7)	%	—	%
Forfeit benefit due to merger/liquidations (4)	(14.7)	%	—	%	—	%
Other	0.3	%	0.9	%	(1.5)	%

Effective rate	(14.5)	%	37.4	%	19.5	%

________________________

(1)In 2023, includes reduction in valuation allowance due to the forfeit of tax benefits on merger or liquidation of foreign subsidiaries that maintained full valuation allowances on their deferred tax assets. In 2022, includes valuation allowance recorded on U.K. deferred tax assets.

(2)During the fourth quarter of 2023, the Company recorded a non-cash goodwill impairment charge of $238.2 million at the Cabot reporting unit. Refer to “Note 15: Goodwill and Identified Intangible Assets” for further details.

(3)In 2023, represents a taxable gain recognized in a foreign subsidiary. In 2022, represents deductible loss recognized in a foreign subsidiary that maintains a full valuation allowance on its deferred tax assets. Accordingly, the deductible loss increased the valuation allowance and did not result in any tax benefit during the year ended December 31, 2022.

(4)Represents the forfeit of tax benefits on merger or liquidation of foreign subsidiaries that maintained full valuation allowances on their deferred tax assets.

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, 2023		December 31, 2022
Deferred tax assets:
Net operating losses	$	50,061	$	70,543
Operating lease liabilities	16,938		12,222
Accrued expenses	9,048		10,800
Difference in basis of bond and loan costs	4,155		—
Difference in basis of receivable portfolio	22,070		23,751
Stock-based compensation	3,916		4,960
Difference in basis of depreciable and amortizable assets	1,957		2,057
Other	5,303		2,396
Total deferred tax assets	113,448		126,729
Valuation allowance	(54,993)		(66,625)
Total deferred tax assets net of valuation allowance	58,455		60,104
Deferred tax liabilities:
Accrued expenses	(76)		(443)
Difference in basis of bond and loan costs	(445)		(1,003)
Difference in basis of receivable portfolio	(56,263)		(109,787)
Stock-based compensation	—		(970)
Right-of-use asset	(14,306)		(9,794)
Difference in basis of depreciable and amortizable assets	(8,596)		(16,807)
Prepaid expenses	(545)		(875)
Other	(3,087)		(10,206)
Total deferred tax liabilities	(83,318)		(149,885)
Net deferred tax liability(1)	$	(24,863)	$	(89,781)

________________________

(1)The Company operates in multiple jurisdictions. In accordance with authoritative guidance relating to income taxes, deferred taxes 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.

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, 2020	$	6,781
Decrease related to prior year tax positions	(2,034)
Decrease related to expiration of statute of limitations	(712)
Increase related to prior year tax positions	261
Increase related to current year tax positions	251
Balance as of December 31, 2021	4,547
Decrease related to prior year tax positions	(1,296)
Decrease related to settlements with taxing authorities	(713)
Decrease related to expiration of statute of limitations	(115)
Increase related to prior year tax positions	874
Increase related to current year tax positions	691
Balance as of December 31, 2022	3,988
Increase related to prior year tax positions	2,302
Increase related to current year tax positions	649
Decrease related to expiration of statute of limitations	(69)
Other	91
Balance as of December 31, 2023	$	6,961

Commitments and Contingencies - Narrative (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Material reserves for legal matters	$ 0
Purchase price	384,600,000
Retirement Benefit Plan Expenses Recognized	6,800,000	$ 2,800,000	$ 2,800,000
Estimated fair value, liability	$ 0

Stock-Based Compensation

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Note 10: 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, 2023, 2022, and 2021 was $13.9 million, $15.4 million, and $18.3 million, respectively. The actual tax benefit from stock-based compensation arrangements totaled $1.8 million, $4.2 million, and $2.5 million for the years ended December 31, 2023, 2022, and 2021, 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, 2023, 2022, or 2021. All outstanding stock options previously granted under the 2005 plan have been fully vested and all related compensation expense has been fully recognized prior to December 31, 2022. All exercisable options have been exercised prior to December 31, 2022.

The total intrinsic value of options exercised was $0.2 million during both years ended December 31, 2022 and 2021. Cash received from option exercise under all share-based payment arrangements during the years ended December 31, 2022 and 2021 was negligible.

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) exceeded 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, 2023, 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 and exercisable as of December 31, 2022	79,949	$	30.95


Exercised	(79,949)	$	30.95


Outstanding and exercisable as of December 31, 2023	—	$	—	—	$	—

As of December 31, 2023, all related compensation expense has been fully recognized. No performance stock options were granted during the years ended December 31, 2023, 2022, and 2021. The total intrinsic value of performance options exercised during the year ended December 31, 2023, 2022, and 2021 was $1.3 million, $0.6 million, and $1.1 million, respectively. Cash received from performance option exercise during the years ended December 31, 2023, 2022, and 2021 was $1.7 million, $0.6 million, and $1.6 million, respectively.

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, 2023, 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, 2022	542,935	$	51.31
Awarded	325,765	$	49.97
Vested	(315,153)	$	45.95
Cancelled	(34,834)	$	55.36
Non-vested as of December 31, 2023	518,713	$	53.45

________________________

(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 up to 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, 2023 and 2022, the maximum number of non-vested performance shares that could vest under the provisions of the agreements was 659,343 and 687,320, respectively.

Unrecognized compensation expense related to non-vested shares as of December 31, 2023 was $13.7 million. The weighted-average remaining expense period, based on the unamortized value of these outstanding non-vested shares, was approximately 1.4 years. The fair value of restricted stock units and restricted stock awards vested for the years ended December 31, 2023, 2022, and 2021 was $15.7 million, $26.9 million, and $16.9 million, respectively. The weighted average grant date fair value for stock awards granted during the years ended December 31, 2023, 2022, and 2021 was $49.97, $60.45, and $42.09, respectively.

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

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Estimated Useful Lives of Property and Equipment

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


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

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

A reconciliation of shares used in calculating income or loss per basic and diluted shares follows (in thousands, except per share amounts):


	Year Ended December 31,
	2023		2022		2021



Net (loss) income attributable to Encore Capital Group, Inc.	$	(206,492)	$	194,564	$	350,782

Total weighted-average basic shares outstanding	23,670		24,142		30,129
Dilutive effect of stock-based awards	—		344		407
Dilutive effect of convertible and exchangeable senior notes	—		1,606		617
Total weighted-average dilutive shares outstanding	23,670		26,092		31,153




Basic (loss) income per share	$	(8.72)	$	8.06	$	11.64



Diluted (loss) income per share	$	(8.72)	$	7.46	$	11.26

Goodwill and Identifiable Intangible Assets - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 918	$ 46,407
Accumulated Amortization	(870)	(24,295)
Finite-Lived Intangible Assets, Net, Total	48	22,112
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	0	45,498
Accumulated Amortization	0	(23,507)
Finite-Lived Intangible Assets, Net, Total	0	21,991
Trade name and other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	918	909
Accumulated Amortization	(870)	(788)
Finite-Lived Intangible Assets, Net, Total	$ 48	$ 121

Stock-Based Compensation - Summary of Stock Awards (Details) - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Non-Vested Shares
Non-Vested Shares, Beginning Balance (in shares)	542,935
Non-Vested Shares, Awarded (in shares)	325,765
Non-Vested Shares, Vested (in shares)	(315,153)
Non-Vested Shares, Cancelled (in shares)	(34,834)
Non-Vested Shares, Ending Balance (in shares)	518,713	542,935
Weighted Average Grant Date Fair Value
Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share)	$ 51.31
Weighted average grant date fair value, awarded (in dollars per share)	49.97	$ 60.45	$ 42.09
Weighted Average Grant Date Fair Value, Vested (in dollars per share)	45.95
Weighted Average Grant Date Fair Value, Cancelled (in dollars per share)	55.36
Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share)	$ 53.45	$ 51.31
Performance Shares
Weighted Average Grant Date Fair Value
Maximum shares that could vest (percent)	200.00%
Maximum number that could vest (in shares)	659,343	687,320

Goodwill and Identifiable Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Identifiable Intangible Assets

Note 15: Goodwill and Identifiable Intangible Assets

As of December 31, 2023, the Company had two reporting units, MCM and Cabot, that carried goodwill. When performing its annual goodwill impairment assessment during the fourth quarter of 2023, the Company chose to proceed directly to performing quantitative tests for both reporting units. The annual goodwill impairment analysis resulted in an impairment charge for the Cabot reporting unit of $238.2 million. The fair value of the MCM reporting unit substantially exceeded its carrying value on the assessment date, as a result, there was no impairment of goodwill for the MCM reporting unit during the year ended December 31, 2023.

The Company’s prior annual goodwill impairment test resulted in a sufficient cushion for the Cabot reporting unit. Additionally, the Company did not observe significant indicators of goodwill impairment triggers during its subsequent interim qualitative assessments. During the fourth quarter of 2023, management completed its annual update of the five-year financial forecast at the Cabot reporting unit, resulting in a revised forecast due to a combination of (1) the continuation of lower than expected levels of outstanding unsecured consumer borrowings and charge-off rates in Europe, (2) the continuation of portfolio pricing that management believes does not fully reflect the higher cost of capital, and (3) management allocating capital to the

higher-return US market instead of the Cabot markets, which all impact the expected purchasing volume and related collections forecasts at the Cabot reporting unit. The decline in the fair value of the Cabot reporting unit below its carrying value resulted from changes in expected future cash flows as compared to the Company’s prior year financial forecasts, decline in market multiples, as well as an increase in the cost of capital.

In conjunction with the quantitative goodwill impairment test, the Company tested the recoverability of long-lived assets and other assets of the Cabot reporting unit and concluded that the intangible assets carried at Cabot’s debt servicing business were fully impaired. As a result, the Company recorded an impairment charge of its intangible assets of $18.7 million during the fourth quarter of 2023. The Company recorded an impairment charge of $4.1 million for its definite-lived intangible assets during the year ended December 31, 2022.

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


	MCM		Cabot		Total
Balance as of December 31, 2020	$	148,936	$	758,026	$	906,962
Effect of foreign currency translation	—		(9,167)		(9,167)
Balance as of December 31, 2021	148,936		748,859		897,795
Effect of foreign currency translation	—		(76,581)		(76,581)
Balance as of December 31, 2022	148,936		672,278		821,214



Goodwill impairment	—		(238,200)		(238,200)
Effect of foreign currency translation	—		23,461		23,461
Balance as of December 31, 2023	$	148,936	$	457,539	$	606,475

There was no accumulated goodwill impairment loss as of December 31, 2022 and 2021. The accumulated goodwill impairment loss at the Cabot reporting unit was $238.2 million as of December 31, 2023.

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


	As of December 31, 2023						As of December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	—	$	—	$	—	$	45,498	$	(23,507)	$	21,991

Trade name and other	918		(870)		48		909		(788)		121

Total intangible assets	$	918	$	(870)	$	48	$	46,407	$	(24,295)	$	22,112

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

Trade name and other			7

The amortization expense for intangible assets subject to amortization was $3.6 million, $6.3 million, and $7.9 million during the years ended December 31, 2023, 2022, and 2021, respectively. Estimated future amortization expense related to finite-lived intangible assets as of December 31, 2023 was negligible.

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Operating lease right-of-use assets	$ 67,019	$ 70,074
Finance lease ROU assets	$ 18,571	$ 18,337
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property and equipment, net	Property and equipment, net
Total lease ROU assets	$ 85,590	$ 88,411
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other liabilities	Other liabilities
Operating lease liabilities	$ 81,467	$ 83,598
Finance lease liabilities	2,818	5,675
Total lease liabilities	$ 84,285	$ 89,273

Common Stock	12 Months Ended
Common Stock	Dec. 31, 2023
Common Stock [Abstract]
Common Stock	Note 8: Common Stock On August 12, 2015, the Company’s Board of Directors approved a $50.0 million share repurchase program. On May 5, 2021, the Company announced that the Board of Directors had approved an increase in the size of the repurchase program from $50.0 million to $300.0 million (an increase of $250.0 million). Repurchases under this program are expected to be made with cash on hand and may be made from time to time, subject to market conditions and other factors, in the open market, through private transactions, block transactions, or other methods as determined by the Company’s management and Board of Directors, and in accordance with market conditions, other corporate considerations, and applicable regulatory requirements. The program does not obligate the Company to acquire any particular amount of common stock, and it may be modified or suspended at any time at the Company’s discretion. There were no shares repurchased during the year ended December 2023. During the years ended December 2022 and 2021, the Company repurchased 1,497,184 and 2,598,034 shares of its common stock for approximately $86.9 million and $121.2 million, respectively. The Company’s practice is to retire the shares repurchased. On November 4, 2021, the Company commenced a modified “Dutch Auction” tender offer to purchase up to $300.0 million of shares of its common stock with a price range between $52.00 and $60.00 per share. On December 9, 2021, the Company announced the final results of the tender offer. Through the tender offer, the Company purchased 4,471,995 shares of common stock at a price of $60.00 per share, for a total cost of $268.3 million, excluding fees and expenses. The shares purchased through the tender offer were immediately retired. The Company records the excess of repurchase price over the par amount to additional paid-in capital, then to retained earnings once additional paid-in capital is reduced to zero. Direct costs relating to the stock repurchases are treated as stock issuance costs and are included in stockholders’ equity.

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, 2023	Dec. 31, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Net (loss) income attributable to Encore Capital Group, Inc. stockholders	$ (206,492)	$ 194,564	$ 350,782
Total weighted-average basic shares outstanding (in shares)	23,670	24,142	30,129
Dilutive effect of stock-based awards (in shares)	0	344	407
Dilutive effect of convertible and exchangeable senior notes (in shares)	0	1,606	617
Total weighted-average dilutive shares outstanding (in shares)	23,670	26,092	31,153
Earnings per share
Basic (loss) income per share (usd per share)	$ (8.72)	$ 8.06	$ 11.64
Diluted (loss) income per share (usd per share)	$ (8.72)	$ 7.46	$ 11.26

- 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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+ Details

- 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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+ Details

- Definition

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

+ References

+ Details

Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (206,492)	$ 194,564	$ 351,201
Change in unrealized (loss) gain on derivative instruments:
Unrealized (loss) gain on derivative instruments	(44,478)	36,385	12,835
Income tax effect	4,891	(407)	(2,165)
Unrealized (loss) gain on derivative instruments, net of tax	(39,587)	35,978	10,670
Change in foreign currency translation:
Unrealized gain (loss) on foreign currency translation	15,376	(78,232)	(15,309)
Income tax effect	(893)	(3,014)	0
Removal of other comprehensive loss in connection with divestiture	0	0	19,904
Unrealized gain (loss) on foreign currency translation, net of divestiture	14,483	(81,246)	4,595
Other comprehensive (loss) income, net of tax	(25,104)	(45,268)	15,265
Comprehensive (loss) income	(231,596)	149,296	366,466
Comprehensive income attributable to noncontrolling interest:
Net income attributable to noncontrolling interest	0	0	(419)
Comprehensive income attributable to noncontrolling interest	0	0	(419)
Comprehensive (loss) income attributable to Encore Capital Group, Inc. stockholders	$ (231,596)	$ 149,296	$ 366,047

Consolidated Statements of Operations - USD ($) shares in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenues
Revenue from receivable portfolios	$ 1,204,437,000	$ 1,202,361,000	$ 1,287,730,000
Changes in recoveries	(82,530,000)	93,145,000	199,136,000
Total debt purchasing revenue	1,121,907,000	1,295,506,000	1,486,866,000
Servicing revenue	83,136,000	94,922,000	120,778,000
Other revenues	17,637,000	7,919,000	6,855,000
Total revenues	1,222,680,000	1,398,347,000	1,614,499,000
Operating expenses
Salaries and employee benefits	391,532,000	375,135,000	385,178,000
Cost of legal collections	224,252,000	217,944,000	254,280,000
General and administrative expenses	144,862,000	145,798,000	137,695,000
Other operating expenses	111,179,000	111,234,000	106,938,000
Collection agency commissions	35,657,000	35,568,000	47,057,000
Depreciation and amortization	41,737,000	46,419,000	50,079,000
Goodwill impairment	238,200,000	0	0
Impairment of intangible assets	18,726,000	4,075,000	0
Total operating expenses	1,206,145,000	936,173,000	981,227,000
Income from operations	16,535,000	462,174,000	633,272,000
Other expense
Interest expense	(201,877,000)	(153,308,000)	(169,647,000)
Loss on extinguishment of debt	0	0	(9,300,000)
Other income (expense)	5,078,000	2,123,000	(17,784,000)
Total other expense	(196,799,000)	(151,185,000)	(196,731,000)
(Loss) income before income taxes	(180,264,000)	310,989,000	436,541,000
Provision for income taxes	(26,228,000)	(116,425,000)	(85,340,000)
Net (loss) income	(206,492,000)	194,564,000	351,201,000
Net income attributable to noncontrolling interest	0	0	(419,000)
Net (loss) income attributable to Encore Capital Group, Inc. stockholders	$ (206,492,000)	$ 194,564,000	$ 350,782,000
(Loss) income per share attributable to Encore Capital Group, Inc.:
Basic (USD per share)	$ (8.72)	$ 8.06	$ 11.64
Diluted (USD per share)	$ (8.72)	$ 7.46	$ 11.26
Weighted average shares outstanding:
Basic (shares)	23,670	24,142	30,129
Diluted (shares)	23,670	26,092	31,153

Investment in Receivable Portfolios, Net - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Receivables [Abstract]
Recoveries (below) above forecast	$ (33,405)	$ 29,253	$ 326,006
Changes in expected future recoveries	$ (49,125)	$ 63,892	$ (126,870)

Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Assets
Cash and cash equivalents	$ 158,364	$ 143,912
Investment in receivable portfolios, net	3,468,432	3,088,261
Property and equipment, net	103,959	113,900
Other assets	293,256	341,073
Goodwill	606,475	821,214
Total assets	4,630,486	4,508,360
Liabilities:
Accounts payable and accrued liabilities	189,928	198,217
Borrowings	3,318,031	2,898,821
Other liabilities	185,989	231,695
Total liabilities	3,693,948	3,328,733
Commitments and contingencies (Note 13)
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, 23,545 shares and 23,323 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively	235	233
Additional paid-in capital	11,052	0
Accumulated earnings	1,049,171	1,278,210
Accumulated other comprehensive loss	(123,920)	(98,816)
Total stockholders’ equity	936,538	1,179,627
Total liabilities and stockholders’ equity	4,630,486	4,508,360
Variable Interest Entity
Assets
Cash and cash equivalents	24,472	1,344
Investment in receivable portfolios, net	717,556	431,350
Other assets	19,358	3,627
Liabilities:
Accounts payable and accrued liabilities	1,854	150
Borrowings	494,925	423,522
Other liabilities	$ 2,452	$ 105

Composition of Certain Financial Statement Items

12 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Composition of Certain Financial Statement Items

Note 5: 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, 2023		December 31, 2022
Computer equipment and software	$	187,549	$	209,803
Leasehold improvements	34,720		34,950
Furniture, fixtures and equipment	19,962		20,155
Construction in process	28,639		2,546
Other	2,229		1,600
	273,099		269,054
Less: accumulated depreciation	(169,140)		(155,154)
	$	103,959	$	113,900

Depreciation expense related to property and equipment was $38.2 million, $40.1 million, and $42.2 million during the years ended December 31, 2023, 2022, and 2021, respectively.

Other Assets

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


	December 31, 2023		December 31, 2022
Real estate owned	$	70,590	$	68,242
Operating lease right-of-use assets	67,019		70,074
Prepaid expenses	32,910		30,376
Derivative instruments	17,311		36,807
Deferred tax assets	17,277		18,069
Service fee receivables	9,080		16,094
Income tax deposits	8,735		18,259
Identifiable intangible assets, net	48		22,112
Other	70,286		61,040
Total	$	293,256	$	341,073

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 13: 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 asserting various claims, including those based on the Fair Debt Collection Practices Act (“FDCPA”), the Fair Credit Reporting Act (“FCRA”), the Telephone Consumer Protection Act (“TCPA”), comparable state statutes, 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. In October 2020, the Company entered into a stipulated judgment (“Stipulated Judgment”) with the CFPB to resolve a subsequent lawsuit related to the 2015 Consent Order. Additionally, we are subject to ancillary state Attorney General investigations related to similar debt collection practices. We have entered into settlement agreements with the Attorneys General of various U.S. states 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, 2023, 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, 2023, the Company had entered into forward flow purchase agreements for the purchase of nonperforming loans with an estimated minimum aggregate purchase price of approximately $384.6 million. The Company expects 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 in the U.S. 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 also has defined contribution plans for eligible employees in other countries. The Company recognized expense of approximately $6.8 million, $2.8 million, and $2.8 million for the years ended December 31, 2023, 2022, and 2021, respectively, in salaries and employee benefits in its consolidated statements of operations. 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, 2023, has no liabilities recorded for these agreements.

Stock-Based Compensation - Summary of Stock Option Activity (Details) - Performance Stock Options $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) $ / shares shares
Number of Shares
Number of Shares, Outstanding, Beginning Balance (in shares) \| shares	79,949
Number of Shares Exercised in Period (in shares) \| shares	(79,949)
Number of Shares, Outstanding, Ending Balance (in shares) \| shares	0
Weighted Average Exercise Price
Weighted Average Exercise Price, Outstanding, Beginning Balance (in dollars per share) \| $ / shares	$ 30.95
Weighted Average Exercise Price, Exercised (in dollars per share) \| $ / shares	30.95
Weighted Average Exercise Price, Outstanding, Ending Balance (in dollars per share) \| $ / shares	$ 0
Aggregate Intrinsic Value (in thousands)
Aggregate intrinsic value, Outstanding \| $	$ 0

Cover Page - USD ($) $ in Millions	12 Months Ended
Cover Page - USD ($) $ in Millions	Dec. 31, 2023	Feb. 15, 2024	Jun. 30, 2023
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Current Fiscal Year End Date	--12-31
Document Period End Date	Dec. 31, 2023
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
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 1,120.9
Entity Common Stock, Shares Outstanding		23,545,102
Documents Incorporated by Reference	Portions of the registrant’s definitive proxy statement in connection with its annual meeting of stockholders to be held in 2024 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, 2023, which proxy statement will be filed no later than 120 days after the close of the registrant’s fiscal year December 31, 2023.
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Entity Central Index Key	0001084961

Borrowings - Summary of Debt Obligations Maturities (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Maturities of Long-term Debt and Capital Lease Obligations [Abstract]
2024	$ 41,363
2025	494,333
2026	560,887
2027	819,319
2028	1,211,374
Thereafter	231,271
Total	$ 3,358,547

Income Taxes Income Taxes - Income Before Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
US	$ 61,356	$ 331,009	$ 390,607
Foreign	(241,620)	(20,020)	45,934
(Loss) income before income taxes	$ (180,264)	$ 310,989	$ 436,541

- 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

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-Section S99
-Paragraph 1
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+ Details

Fair Value Measurements - Schedule of Contingent Consideration Roll Forward (Details) - Contingent Consideration - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at Beginning of period	$ 5,218	$ 2,957
Issuance of contingent consideration in connection with purchase of noncontrolling interest		2,913
Change in fair value of contingent consideration	794	(388)
Payment of contingent consideration	(5,273)	(180)
Effect of foreign currency translation	(739)	(84)
Balance at End of period	$ 0	$ 5,218

Leases - Schedule of Lease Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Finance Leases
2024	$ 2,013
2025	783
2026	84
2027	42
2028	0
Thereafter	0
Total undiscounted lease payments	2,922
Less: imputed interest	(104)
Finance lease liabilities	2,818	$ 5,675
Operating Leases
2024	17,941
2025	17,010
2026	16,173
2027	13,502
2028	11,423
Thereafter	19,417
Total undiscounted lease payments	95,466
Less: imputed interest	(13,999)
Operating lease liabilities	81,467	83,598
2024	19,954
2025	17,793
2026	16,257
2027	13,544
2028	11,423
Thereafter	19,417
Total undiscounted lease payments	98,388
Less: imputed interest	(14,103)
Total lease liabilities	$ 84,285	$ 89,273

Investment in Receivable Portfolios, Net (Tables)

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

Investment in receivable portfolios, net consist of the following as of the dates presented (in thousands):


	Year Ended December 31,
	2023		2022
Amortized cost	$	—	$	—
Negative allowance for expected recoveries	3,468,432		3,088,261
Balance, end of period	$	3,468,432	$	3,088,261

Schedule Of Investment In Receivable Portfolios Table

The following table summarizes the changes in the balance of investment in receivable portfolios, net during the periods presented (in thousands):


	Year Ended December 31,
	2023		2022		2021
Balance, beginning of period	$	3,088,261	$	3,065,553	$	3,291,918
Negative allowance for expected recoveries - current period purchases(1)	1,073,812		800,507		664,529
Collections applied to investment in receivable portfolios, net(2)	(658,130)		(709,176)		(1,019,629)
Changes in recoveries(3)	(82,530)		93,145		199,136
Put-backs and Recalls	(13,606)		(9,938)		(7,249)
Deconsolidation of receivable portfolios	—		—		(9,352)
Disposals and transfers to real estate owned	(7,957)		(8,335)		(8,071)
Foreign currency translation adjustments	68,582		(143,495)		(45,729)
Balance, end of period	$	3,468,432	$	3,088,261	$	3,065,553

_______________________

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


	Year Ended December 31,
	2023		2022		2021
Purchase price	$	1,073,812	$	800,507	$	664,529
Allowance for credit losses	3,430,036		2,332,112		1,823,582
Amortized cost	4,503,848		3,132,619		2,488,111
Noncredit discount	5,333,109		3,216,500		3,284,369
Face value	9,836,957		6,349,119		5,772,480
Write-off of amortized cost	(4,503,848)		(3,132,619)		(2,488,111)
Write-off of noncredit discount	(5,333,109)		(3,216,500)		(3,284,369)
Negative allowance	1,073,812		800,507		664,529
Negative allowance for expected recoveries - current period purchases	$	1,073,812	$	800,507	$	664,529

(2)Collections applied to investment in receivable portfolios, net, is calculated as follows during the periods presented:


	Year Ended December 31,
	2023		2022		2021
Cash Collections	$	1,862,567	$	1,911,537	$	2,307,359
Less - amounts classified to revenue from receivable portfolios	(1,204,437)		(1,202,361)		(1,287,730)
Collections applied to investment in receivable portfolios, net	$	658,130	$	709,176	$	1,019,629

(3)Changes in recoveries is calculated as follows during the periods presented, where recoveries include cash collections, put-backs and recalls, and other cash-based adjustments:


	Year Ended December 31,
	2023		2022		2021
Recoveries (below) above forecast	$	(33,405)	$	29,253	$	326,006
Changes in expected future recoveries	(49,125)		63,892		(126,870)
Changes in recoveries	$	(82,530)	$	93,145	$	199,136

Ownership, Description of Business, and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Restricted cash	$ 16.0	$ 17.8

Fair Value Measurements - Schedule of Financial Instruments Not Required to Be Carried at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment in receivable portfolios, net	$ 3,468,432	$ 3,088,261
Carrying Amount \| Other
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	24,904	23,512
Carrying Amount \| Global senior secured revolving credit facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	816,880	661,738
Carrying Amount \| Encore private placement notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	29,310	68,390
Carrying Amount \| Senior secured notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	1,649,621	1,480,258
Carrying Amount \| Exchangeable senior notes due September 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	0	172,500
Carrying Amount \| Convertible senior notes due October 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	100,000	100,000
Carrying Amount \| Convertible senior notes due March 2029
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	230,000	0
Carrying Amount \| Cabot securitisation senior facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	324,646	423,522
Carrying Amount \| U.S. facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	175,000	0
Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment in receivable portfolios, net	3,515,651	3,242,506
Estimated Fair Value \| Other
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	24,904	23,512
Estimated Fair Value \| Global senior secured revolving credit facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	816,880	661,738
Estimated Fair Value \| Encore private placement notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	28,922	66,947
Estimated Fair Value \| Senior secured notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	1,598,636	1,334,686
Estimated Fair Value \| Exchangeable senior notes due September 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	0	205,227
Estimated Fair Value \| Convertible senior notes due October 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	136,403	130,556
Estimated Fair Value \| Convertible senior notes due March 2029
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	226,794	0
Estimated Fair Value \| Cabot securitisation senior facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	324,646	423,522
Estimated Fair Value \| U.S. facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	$ 175,000	$ 0

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Stock Option Activity

A summary of the Company’s performance stock option activity as of December 31, 2023, 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 and exercisable as of December 31, 2022	79,949	$	30.95


Exercised	(79,949)	$	30.95


Outstanding and exercisable as of December 31, 2023	—	$	—	—	$	—

Summary of Restricted Stock Units

A summary of the Company’s stock award activities as of December 31, 2023, 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, 2022	542,935	$	51.31
Awarded	325,765	$	49.97
Vested	(315,153)	$	45.95
Cancelled	(34,834)	$	55.36
Non-vested as of December 31, 2023	518,713	$	53.45

________________________

Derivatives and Hedging Instruments - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2023 GBP (£)
Derivative [Line Items]
Cash flow hedge gain (loss) to be reclassified within twelve months	$ 10.6
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Before Tax, Related to Partial Dedesignation	3.7
Dedesignated derivative, notional amount	$ 127.3	£ 100,000,000
United Kingdom, Pounds
Derivative [Line Items]
Foreign currency exchange rate, translation	0.79	0.79

Borrowings - Senior Secured Notes - Table (Details) - Secured Debt $ in Thousands, € in Millions	12 Months Ended
	Dec. 31, 2023 USD ($)	Oct. 16, 2023 USD ($)	Oct. 16, 2023 EUR (€)	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Senior secured notes	$ 1,654,989			$ 1,485,888
Encore 2025 Notes
Debt Instrument [Line Items]
Senior secured notes	$ 386,324			375,325
Stated interest rate (as a percent)	4.875%
Encore 2026 Notes
Debt Instrument [Line Items]
Senior secured notes	$ 381,937			363,019
Stated interest rate (as a percent)	5.375%
Encore 2028 Notes
Debt Instrument [Line Items]
Senior secured notes	$ 318,280			302,516
Stated interest rate (as a percent)	4.25%
Encore 2028 Floating Rate Notes
Debt Instrument [Line Items]
Senior secured notes	$ 568,448	$ 110,400	€ 100.0	$ 445,028
Variable rate floor (as a percent)	0.00%
Encore 2028 Floating Rate Notes \| Euro Interbank Offered Rate (EURIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	4.25%

Accumulated Other Comprehensive Loss

12 Months Ended

Dec. 31, 2023

Accumulated Other Comprehensive Income [Abstract]

Accumulated Other Comprehensive Loss

Note 9: Accumulated Other Comprehensive Loss

A summary of the Company’s changes in accumulated other comprehensive loss by component is presented below (in thousands):


	Derivatives		Currency Translation Adjustments		Accumulated Other Comprehensive Loss
Balance at December 31, 2020	$	(10,154)	$	(58,659)	$	(68,813)
Other comprehensive loss before reclassification	(31,709)		(15,309)		(47,018)
Reclassification	44,544		—		44,544
Removal of OCI in connection with divestiture	—		19,904		19,904
Tax effect	(2,165)		—		(2,165)
Balance at December 31, 2021	516		(54,064)		(53,548)
Other comprehensive income (loss) before reclassification	5,737		(78,232)		(72,495)
Reclassification	30,648		—		30,648

Tax effect	(407)		(3,014)		(3,421)
Balance at December 31, 2022	36,494		(135,310)		(98,816)
Other comprehensive (loss) income before reclassification	(41,508)		15,376		(26,132)
Reclassification	(2,970)		—		(2,970)
Tax effect	4,891		(893)		3,998
Balance at December 31, 2023	$	(3,093)	$	(120,827)	$	(123,920)

Composition of Certain Financial Statement Items (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023		December 31, 2022
Computer equipment and software	$	187,549	$	209,803
Leasehold improvements	34,720		34,950
Furniture, fixtures and equipment	19,962		20,155
Construction in process	28,639		2,546
Other	2,229		1,600
	273,099		269,054
Less: accumulated depreciation	(169,140)		(155,154)
	$	103,959	$	113,900

Other Assets

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


	December 31, 2023		December 31, 2022
Real estate owned	$	70,590	$	68,242
Operating lease right-of-use assets	67,019		70,074
Prepaid expenses	32,910		30,376
Derivative instruments	17,311		36,807
Deferred tax assets	17,277		18,069
Service fee receivables	9,080		16,094
Income tax deposits	8,735		18,259
Identifiable intangible assets, net	48		22,112
Other	70,286		61,040
Total	$	293,256	$	341,073

Composition of Certain Financial Statement Items - Schedule of Other Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Real estate owned	$ 70,590	$ 68,242
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Total	Total
Operating lease right-of-use assets	$ 67,019	$ 70,074
Prepaid expenses	32,910	30,376
Derivative instruments	17,311	36,807
Deferred tax assets	17,277	18,069
Service fee receivables	9,080	16,094
Income tax deposits	8,735	18,259
Identifiable intangible assets, net	48	22,112
Other	70,286	61,040
Total	$ 293,256	$ 341,073

Segment Information and Geographic Information - Narrative (Details)	12 Months Ended
	Dec. 31, 2023 segment
Segment Reporting [Abstract]
Number of reportable segments	1

Borrowings

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Borrowings

Note 6: Borrowings

The Company is in compliance in all material respects with all covenants under its financing arrangements as of December 31, 2023. The components of the Company’s consolidated borrowings were as follows (in thousands):


	December 31, 2023		December 31, 2022
Global senior secured revolving credit facility	$	816,880	$	661,738
Encore private placement notes	29,310		68,390
Senior secured notes	1,654,989		1,485,888
Convertible notes and exchangeable notes	330,000		272,500
Cabot securitisation senior facility	324,646		423,522
U.S. facility	175,000		—
Other	24,904		23,512
Finance lease liabilities	2,818		5,675
	3,358,547		2,941,225
Less: debt discount and issuance costs, net of amortization	(40,516)		(42,404)
Total	$	3,318,031	$	2,898,821

Encore is the parent of the restricted group for the Global Senior Facility, the Senior Secured Notes and the Encore Private Placement Notes, each of which is 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.

Global Senior Secured Revolving Credit Facility

In September 2020, the Company entered into a multi-currency senior secured revolving credit facility agreement (as amended and restated, the “Global Senior Facility”). In May 2023, the Company amended the Global Senior Facility to extend the termination date of the facility from September 2026 to September 2027. In addition, the size of the facility was increased by $40.0 million to $1,180.0 million. On October 30, 2023, pursuant to the terms of the Global Senior Facility the Company further increased the size of the Company’s Global Senior Facility by $23.0 million to $1,203.0 million. As of December 31, 2023, the Global Senior Facility provided for a total committed facility of $1,203.0 million that matures in September 2027 and includes the following key provisions:

•Interest at Term SOFR (or EURIBOR for any loan drawn in Euro or a rate based on SONIA for any loan drawn in British Pound), with a Term SOFR (or EURIBOR or SONIA) floor of 0.00%, plus a margin of 2.50%, plus in the case of Term SOFR borrowings, a credit adjustment spread of 0.10%;

•An unused commitment fee of 0.40% per annum, payable quarterly in arrears;

•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 LTV 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, 2023, the outstanding borrowings under the Global Senior Facility were $816.9 million. The weighted average interest rate of the Global Senior Facility was 7.58% and 4.42% for the years ended December 31, 2023 and December 31, 2022, respectively. Available capacity under the Global Senior Facility, after taking into account applicable debt covenants, was approximately $363.8 million as of December 31, 2023.

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”). As of December 31, 2023, $29.3 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 Company’s senior secured notes (the “Senior Secured Notes”) ($ in thousands):


	December 31, 2023		December 31, 2022		Issue Currency	Maturity Date	Interest Payment Dates	Interest Rate


Encore 2025 Notes	$	386,324	$	375,325	EUR	Oct 15, 2025	Apr 15, Oct 15	4.875	%
Encore 2026 Notes	381,937		363,019		GBP	Feb 15, 2026	Feb 15, Aug 15	5.375	%
Encore 2028 Notes	318,280		302,516		GBP	Jun 1, 2028	Jun 1, Dec 1	4.250	%
Encore 2028 Floating Rate Notes	568,448		445,028		EUR	Jan 15, 2028	Jan 15, Apr 15, Jul 15, Oct 15	EURIBOR +4.250%(1)
	$	1,654,989	$	1,485,888

______________________

(1) Interest rate is based on three-month EURIBOR (subject to a 0% floor) plus 4.250% per annum, resets 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 the section “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.

On October 16, 2023, the Company issued an additional €100.0 million (approximately $110.4 million based on an exchange rate of $1.00 to €0.91, the exchange rate as of December 31, 2023) aggregate principal amount of Encore 2028 Floating Rate Notes at an issue price of 99.01%. The Company used the proceeds from this offering to repay drawings under its Global Senior Facility and to pay certain transaction fees and expenses incurred in connection with the offering of the notes. The weighted average interest rate of the 2028 Floating Rate Notes was 7.44% and 4.54% for the years ended December 31, 2023 and 2022, respectively. As discussed in “Note 3: Derivatives and Hedging Instruments,” the Company uses interest rate derivative contracts to manage its risk related to the interest rate fluctuation in its variable interest rate bearing debt. The weighted average interest rate of the 2028 Floating Rate Notes including the effect of the hedging instruments was 4.52% and 4.26% for the years ended December 31, 2023 and 2022, respectively.

Convertible Notes and Exchangeable Notes

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


	December 31, 2023		December 31, 2022		Maturity Date	Interest Payment Dates	Interest Rate
2023 Exchangeable Notes	$	—	$	172,500	Sep 1, 2023	Mar 1, Sep 1	4.500	%
2025 Convertible Notes	100,000		100,000		Oct 1, 2025	Apr 1, Oct 1	3.250	%
2029 Convertible Notes	230,000		—		Mar 15, 2029	Mar 15, Sep 15	4.000	%
	$	330,000	$	272,500

In March 2023, Encore issued $230.0 million aggregate principal amount of 4.00% convertible senior notes that mature on March 15, 2029 in a private placement transaction (the “2029 Convertible Notes”). Interest on the 2029 Convertible Notes is payable semi-annually.

The Company used a portion of the net proceeds from the issuance of the 2029 Convertible Notes to repurchase, in separate privately negotiated transactions, approximately $154.8 million aggregate principal amount of its 2023 Exchangeable Notes for approximately $192.5 million. The repurchase met the criteria for an induced conversion and accordingly, the Company recognized expense of $2.7 million, representing the fair value of the consideration paid to certain holders of the 2023 Exchangeable Notes in excess of the fair value which they were otherwise entitled to receive pursuant to the existing conversion terms on the respective settlement dates. The amount is included in Other income (expense), net, in the Company’s condensed consolidated statements of operations during the year ended December 31, 2023. The remaining excess above the principal amount of the repurchased 2023 Exchangeable Notes was recognized in the Company’s stockholder’s equity.

Additionally, in March 2023, the Company received proceeds of approximately $28.5 million from the unwind of the capped call options associated with the repurchased portion of the 2023 Exchangeable Notes. Since the capped call options were determined to be equity instruments, the partial unwind of the capped call options was recorded as an increase in stockholder’s equity in the consolidated statements of financial condition as of December 31, 2023.

On September 1, 2023, the remaining $17.7 million principal amount of the 2023 Exchangeable Notes matured. The Company settled in cash for approximately $20.1 million both the outstanding 2023 Exchangeable Notes and the $2.4 million excess above the principal amount. The excess above the principal amount represents the conversion spread and was recognized as a reduction in stockholder's equity. Concurrent with the settlement, the Company received $2.4 million from its capped call options associated with the conversion of the remaining 2023 Exchangeable Notes. The proceeds from the exercise of the capped call options were recorded as an increase in stockholder's equity in the Company’s consolidated statement of financial condition as of December 31, 2023. As a result, no gain or loss was recognized as a result of the final settlement of the 2023 Exchangeable Notes in the Company's consolidated statement of operations for the year ended December 31, 2023.

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 prices of the Convertible Notes, the Company may enter into hedge programs that increase the effective conversion price for the Convertible Notes. In connection with the issuance of the 2029 Convertible Notes, the Company entered into privately negotiated capped call transactions that effectively raised the conversion price of the 2029 Convertible Notes from $65.89 to $82.69. The cost of the capped call transactions was approximately $18.5 million. These hedging instruments have been determined to be indexed to the Company’s own stock and meet the criteria for equity classification and therefore the cost was included as a reduction to stockholder’s equity in the consolidated statement of financial condition as of December 31, 2023. Subsequent changes in fair value of these financial instruments are not recognized in the Company’s consolidated financial statements. The Company did not hedge the 2025 Convertible Notes.

Certain key terms related to the convertible features as of December 31, 2023 are listed below ($ in thousands, except conversion or exchange price):


	2025 Convertible Notes		2029 Convertible Notes
Initial conversion price	$	40.00	$	65.89
Closing stock price at date of issuance	$	32.00	$	51.68
Closing stock price date	Sep 4, 2019		Feb 28, 2023
Initial conversion rate (shares per $1,000 principal amount)	25.0000		15.1763
Adjusted conversion rate (shares per $1,000 principal amount)	25.1310		15.1763
Adjusted conversion price(1)	$	39.79	$	65.89
Adjusted effective conversion price(2)	$	39.79	$	82.69
Excess of if-converted value compared to principal(3)	$	27,540	$	—
Conversion date	Jul 1, 2025		Dec 15, 2028

______________________

(1)Pursuant to the indenture for the Company’s 2025 Convertible Notes, the conversion rate for the 2025 Convertible Notes was adjusted upon the completion of the Company’s tender offer in December 2021.

(2)As discussed above, the Company maintains a hedge program that increases the effective conversion price for the 2029 Convertible Notes to $82.69.

(3)Represents the premium the Company would have to pay assuming the Convertible Notes were converted on December 31, 2023 using a hypothetical share price based on the closing stock price on December 31, 2023.

Prior to the close of business on the business day immediately preceding their respective free conversion date (listed above), holders may convert their Convertible Notes under certain circumstances set forth in the applicable indentures. On or after their respective free conversion dates until the close of business on the second scheduled trading day immediately preceding their respective maturity date, holders may convert their notes at any time.

In the event of conversion, the Convertible Notes are convertible 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.

The Company’s convertible and exchangeable notes are carried as a single liability, which reflects the principal amount of the convertible and exchangeable notes. Interest expense related to the Convertible Notes and Exchangeable Notes was approximately $12.6 million, $12.0 million, and $16.8 million for the years ended December 31, 2023, 2022, and 2021, respectively.

Cabot Securitisation Senior Facility

Prior to November 20, 2023, Cabot Securitisation UK Ltd (“Cabot Securitisation”), an indirect subsidiary of Encore, had a senior facility for a committed amount of £350.0 million (as amended, the “Cabot Securitisation Senior Facility”), which would mature in September 2026. Prior to November 20, 2023, funds drawn under the Cabot Securitisation Senior Facility beared interest at a rate per annum equal to SONIA plus a margin of 3.00% plus, for periods after September 18, 2024, a step-up margin ranging from zero to 1.00%. The Company amended its Cabot Securitisation Senior Facility, effective November 20, 2023, to extend the maturity date from September 2026 to September 2028 and reduce the committed amount from £350.0 million to £255.0 million. Effective November 20, 2023, funds drawn under the Cabot Securitisation Senior Facility bear interest at a rate per annum equal to SONIA plus a margin of 3.20% plus, for periods after September 18, 2026, a step up margin ranging from zero to 1.00%.

As of December 31, 2023, the outstanding borrowings under the Cabot Securitisation Senior Facility were £255.0 million (approximately $324.6 million based on an exchange rate of $1.00 to £0.79, the exchange rate as of December 31, 2023). 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 £324.6 million (approximately $413.2 million based on an exchange rate of $1.00 to £0.79, the exchange rate as of December 31, 2023) as of December 31, 2023. The weighted average interest rate of the Cabot Securitisation Senior Facility was 7.68% and 4.49% for the years ended December 31, 2023 and 2022, respectively. As discussed in “Note 3: Derivatives and Hedging Instruments,” the Company uses interest rate derivative contracts to manage its risk related to the interest rate fluctuation in its variable interest rate bearing debt. The weighted average interest rate of the Cabot Securitisation Senior Facility including the effect of the hedging instruments was 5.41% and 4.33% for the years ended December 31, 2023 and 2022, respectively.

Cabot Securitisation is a securitized financing vehicle and is a VIE for consolidation purposes. Refer to “Note 7: Variable Interest Entities” for further details.

U.S. Facility

In October 2023, an indirect subsidiary of Encore (“U.S. Financing Subsidiary”), entered into a facility for a committed amount of $175.0 million (the “U.S. Facility”). The U.S. Facility matures in October 2026. Funds drawn under the U.S. Facility bear interest at a rate per annum equal to Term SOFR plus a margin of 3.5%.

As of December 31, 2023, the outstanding borrowings under the U.S. Facility were $175.0 million. The obligations under the U.S. Facility are secured by first ranking security interests over all of U.S. Financing Subsidiary’s assets and rights. As of December 31, 2023, this included receivables acquired from MCM, the book value of which was approximately $302.8 million. The weighted average interest rate of the U.S. Facility was 8.84% for the year ended December 31, 2023. As discussed in “Note 3: Derivatives and Hedging Instruments,” the Company uses interest rate derivative contracts to manage its risk related to the interest rate fluctuation in its variable interest rate bearing debt. The weighted average interest rate of the U.S. Facility including the effect of the hedging instruments was 8.25% for the year ended December 31, 2023.

The U.S. Facility is a securitized financing vehicle and is a VIE for consolidation purposes. Refer to “Note 7: Variable Interest Entities” for further details.

Finance Lease Liabilities

The Company has finance lease liabilities primarily for computer equipment. As of December 31, 2023, the Company’s finance lease liabilities were approximately $2.8 million. Refer to “Note 12: Leases” for further details.

Maturity Schedule

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


2024	$	41,363
2025	494,333
2026	560,887
2027	819,319
2028	1,211,374
Thereafter	231,271
Total	$	3,358,547

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Net operating losses	$ 50,061	$ 70,543
Operating lease liabilities	16,938	12,222
Accrued expenses	9,048	10,800
Difference in basis of bond and loan costs	4,155	0
Difference in basis of receivable portfolio	22,070	23,751
Stock-based compensation	3,916	4,960
Difference in basis of depreciable and amortizable assets	1,957	2,057
Other	5,303	2,396
Total deferred tax assets	113,448	126,729
Valuation allowance	(54,993)	(66,625)
Total deferred tax assets net of valuation allowance	58,455	60,104
Deferred tax liabilities:
Accrued expenses	(76)	(443)
Difference in basis of bond and loan costs	(445)	(1,003)
Difference in basis of receivable portfolio	(56,263)	(109,787)
Stock-based compensation	0	(970)
Right-of-use asset	(14,306)	(9,794)
Difference in basis of depreciable and amortizable assets	(8,596)	(16,807)
Prepaid expenses	(545)	(875)
Other	(3,087)	(10,206)
Total deferred tax liabilities	(83,318)	(149,885)
Net deferred tax liability	$ (24,863)	$ (89,781)

Insider Trading Arrangements	3 Months Ended	12 Months Ended
Insider Trading Arrangements	Dec. 31, 2023 shares	Dec. 31, 2023 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On November 14, 2023, Ryan Bell, President of MCM, adopted a trading plan intended to satisfy the affirmative defense of Rule 10b5-1(c) to sell up to 7,500 shares of Encore Capital Group, Inc. common stock between February 26, 2024, and February 28, 2025, subject to certain conditions.
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Ryan Bell [Member]
Trading Arrangements, by Individual
Name	Ryan Bell
Title	President of MCM
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	November 14, 2023
Arrangement Duration	368 days
Aggregate Available	7,500	7,500

Borrowings - Narrative (Details) $ / shares in Units, $ in Thousands, € in Millions, £ in Millions							1 Months Ended	3 Months Ended	12 Months Ended
	Nov. 20, 2023 GBP (£)	Nov. 19, 2023 GBP (£)	Oct. 30, 2023 USD ($)	Oct. 16, 2023 USD ($)	Sep. 01, 2023 USD ($)	May 12, 2023 USD ($)	Oct. 31, 2023	Mar. 31, 2023 USD ($) $ / shares	Dec. 31, 2023 USD ($) $ / shares	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2023 GBP (£)	Oct. 16, 2023 EUR (€)	Sep. 30, 2023 USD ($)	Apr. 01, 2023 $ / shares	Aug. 31, 2017 USD ($)
Debt Instrument [Line Items]
Debt Instrument Face Value									$ 330,000	$ 272,500
Amortized cost									0	0
Finance lease liabilities									$ 2,818	$ 5,675
Euro Member Countries, Euro
Debt Instrument [Line Items]
Foreign currency exchange rate, translation									0.91			0.91
United Kingdom, Pounds
Debt Instrument [Line Items]
Foreign currency exchange rate, translation									0.79			0.79
Cabot securitisation senior facility
Debt Instrument [Line Items]
Revolving credit facility \| £	£ 255.0	£ 350.0
Credit facility, outstanding amount									$ 324,600			£ 255.0
Weighted average interest rate (as a percent)									7.68%	4.49%
Amortized cost									$ 413,200			£ 324.6
Cabot securitisation senior facility \| Designated as Hedging Instrument
Debt Instrument [Line Items]
Weighted average interest rate (as a percent)									5.41%	4.33%
Sterling Overnight Index Average (SONIA) \| Cabot securitisation senior facility \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	3.20%	3.00%
Minimum \| Sterling Overnight Index Average (SONIA) \| Cabot securitisation senior facility \| Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	0.00%	0.00%
Maximum \| Sterling Overnight Index Average (SONIA) \| Cabot securitisation senior facility \| Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.00%	1.00%
Encore private placement notes \| Encore private placement notes
Debt Instrument [Line Items]
Debt Instrument Face Value																$ 325,000
Stated interest rate (as a percent)									5.625%			5.625%
Senior Secured Notes, periodic principal repayment									$ 9,800
Long-term debt									29,310	$ 68,390
Secured Debt
Debt Instrument [Line Items]
Senior secured notes									1,654,989	1,485,888
Secured Debt \| Encore 2028 Floating Rate Notes
Debt Instrument [Line Items]
Senior secured notes				$ 110,400					$ 568,448	$ 445,028			€ 100.0
Debt Instrument, Redemption Price (as a percent)				99.01%
Weighted average interest rate (as a percent)									7.44%	4.54%
Secured Debt \| Encore 2028 Floating Rate Notes \| Designated as Hedging Instrument
Debt Instrument [Line Items]
Weighted average interest rate (as a percent)									4.52%	4.26%
Secured Debt \| Euro Interbank Offered Rate (EURIBOR) \| Encore 2028 Floating Rate Notes
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)									4.25%
Convertible Notes \| 2029 Convertible Notes
Debt Instrument [Line Items]
Debt Instrument Face Value								$ 230,000	$ 230,000	$ 0
Stated interest rate (as a percent)								4.00%	4.00%			4.00%
Excess of if-converted value compared to principal									$ 0
Initial conversion price (usd per share) \| $ / shares								$ 65.89	$ 65.89						$ 82.69
Adjustment to additional paid-in capital, convertible debt instrument issued at substantial premium									$ 18,500
Exchangeable Notes Payable \| Exchangeable senior notes due September 2023
Debt Instrument [Line Items]
Debt Instrument Face Value									$ 0	172,500
Stated interest rate (as a percent)									4.50%			4.50%
Debt instrument, repurchased face amount								$ 154,800
Debt instrument, repurchase amount								192,500
Induced conversion of convertible debt expense								2,700
Proceeds from (repayments of) debt					$ 20,100			$ 28,500
Long-term debt, current maturities					17,700
Excess of if-converted value compared to principal					2,400
Proceeds from capped call options, excess above principal amount					$ 2,400
Convertible notes and exchangeable notes
Debt Instrument [Line Items]
Interest expense, debt, excluding amortization									$ 12,600	$ 12,000	$ 16,800
Global senior secured revolving credit facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, increase (decrease), net			$ 23,000			$ 40,000
Revolving credit facility									$ 1,203,000					$ 1,180,000
Line of credit facility, commitment fee (as a percent)									0.40%
Maximum ratio of financial indebtedness to cash and cash equivalent investments									0.75			0.75
Utilization threshold (as a percent)									20.00%			20.00%
Maximum ratio of super senior liabilities to cash and cash equivalent investments									0.275			0.275
Fixed charge coverage ratio									2.0			2.0
Weighted average interest rate (as a percent)									7.58%	4.42%
Remaining borrowing capacity									$ 363,800
Long-term debt									$ 816,900
Global senior secured revolving credit facility \| Revolving Credit Facility \| Sterling Overnight Index Average (SONIA)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)									2.50%
Global senior secured revolving credit facility \| Revolving Credit Facility \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)									2.50%
Interest rate, adjustment spread (as a percent)									0.10%			0.10%
Global senior secured revolving credit facility \| Revolving Credit Facility \| Euro Interbank Offered Rate (EURIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)									2.50%
Global senior secured revolving credit facility \| Revolving Credit Facility \| Minimum \| Sterling Overnight Index Average (SONIA)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)									0.00%
Global senior secured revolving credit facility \| Revolving Credit Facility \| Minimum \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)									0.00%
Global senior secured revolving credit facility \| Revolving Credit Facility \| Minimum \| Euro Interbank Offered Rate (EURIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)									0.00%
Global senior secured revolving credit facility \| Credit Facility
Debt Instrument [Line Items]
Long-term debt									$ 816,880	$ 661,738
Cabot securitisation senior facility \| Credit Facility
Debt Instrument [Line Items]
Long-term debt									$ 324,646	423,522
U.S. facility
Debt Instrument [Line Items]
Weighted average interest rate (as a percent)									8.84%
Amortized cost									$ 302,800
U.S. facility \| Designated as Hedging Instrument
Debt Instrument [Line Items]
Weighted average interest rate (as a percent)									8.25%
U.S. facility \| Credit Facility
Debt Instrument [Line Items]
Long-term debt									$ 175,000	$ 0
U.S. facility \| Credit Facility \| Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)							3.50%

Segment Information and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2023

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,
	2023		2022		2021
Total revenues:
United States	$	792,443	$	995,470	$	1,115,572
Europe
United Kingdom	295,566		272,962		344,214
Other European countries(1)	134,301		129,737		142,316
Total Europe	429,867		402,699		486,530

Other geographies(1)	370		178		12,397
Total	$	1,222,680	$	1,398,347	$	1,614,499

________________________

(1) None of these countries comprise greater than 10% of the Company's consolidated revenues.

Schedule of Long-lived Assets by Geographic Areas


	December 31, 2023		December 31, 2022
Long-lived assets(1):
United States	$	70,361	$	82,695
International
United Kingdom	62,309		58,034
India	23,108		25,337
Other foreign countries(2)	15,200		17,908
	100,617		101,279
Total	$	170,978	$	183,974

________________________

(1)Long-lived assets consist of property and equipment, net and right of use assets.

(2)None of these countries comprise greater than 10% of the Company's consolidated long-lived assets.

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Assets held for sale	$ 70,590	$ 68,242

Goodwill and Identifiable Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2023

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 (in thousands):


	MCM		Cabot		Total
Balance as of December 31, 2020	$	148,936	$	758,026	$	906,962
Effect of foreign currency translation	—		(9,167)		(9,167)
Balance as of December 31, 2021	148,936		748,859		897,795
Effect of foreign currency translation	—		(76,581)		(76,581)
Balance as of December 31, 2022	148,936		672,278		821,214



Goodwill impairment	—		(238,200)		(238,200)
Effect of foreign currency translation	—		23,461		23,461
Balance as of December 31, 2023	$	148,936	$	457,539	$	606,475

Schedule of Acquired Intangible Assets

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


	As of December 31, 2023						As of December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	—	$	—	$	—	$	45,498	$	(23,507)	$	21,991

Trade name and other	918		(870)		48		909		(788)		121

Total intangible assets	$	918	$	(870)	$	48	$	46,407	$	(24,295)	$	22,112

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

Trade name and other			7

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

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+ Details

Leases - Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Operating lease costs	$ 15,102	$ 18,403	$ 17,272
Amortization of ROU assets	2,804	4,296	3,848
Interest on lease liabilities	168	312	419
Total lease costs	$ 18,074	$ 23,011	$ 21,539

Goodwill and Identifiable Intangible Assets - Narrative (Details)	3 Months Ended	12 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2023 USD ($) reportingUnit	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Goodwill [Line Items]
Number of reporting units \| reportingUnit		2
Goodwill impairment		$ 238,200,000	$ 0	$ 0
Impairment of intangible assets	$ 18,700,000	18,726,000	4,075,000	0
Amortization expense		3,600,000	$ 6,300,000	$ 7,900,000
MCM
Goodwill [Line Items]
Goodwill impairment		0
Cabot
Goodwill [Line Items]
Goodwill impairment		$ 238,200,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Apr. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 13.9	$ 15.4	$ 18.3
Tax benefit from stock-based compensation arrangements	$ 1.8	$ 4.2	$ 2.5
Stock-based compensation, vesting period	3 years
Number of options granted (in shares)	0	0	0
Performance stock options, threshold trading days	20 days
Performance stock options, threshold increase from closing price on date of grant (in percent)	25.00%
Unrecognized compensation cost, non vested shares	$ 13.7
Unrecognized compensation cost, expected period of recognition (in years)	1 year 4 months 24 days
Fair value of restricted stock units and restricted stock awards vested	$ 15.7	$ 26.9	$ 16.9
Weighted average grant date fair value, awarded (in dollars per share)	$ 49.97	$ 60.45	$ 42.09
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, contractual term	10 years
Performance Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options intrinsic value	$ 1.3	$ 0.6	$ 1.1
Cash received from option exercise	$ 1.7	0.6	1.6
Equity Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options intrinsic value		$ 0.2	$ 0.2
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 (in years)	4 years

Investment in Receivable Portfolios, Net

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Investment in Receivable Portfolios, Net

Note 4: Investment in Receivable Portfolios, Net

Investment in receivable portfolios, net consist of the following as of the dates presented (in thousands):


	Year Ended December 31,
	2023		2022
Amortized cost	$	—	$	—
Negative allowance for expected recoveries	3,468,432		3,088,261
Balance, end of period	$	3,468,432	$	3,088,261

The following table summarizes the changes in the balance of investment in receivable portfolios, net during the periods presented (in thousands):


	Year Ended December 31,
	2023		2022		2021
Balance, beginning of period	$	3,088,261	$	3,065,553	$	3,291,918
Negative allowance for expected recoveries - current period purchases(1)	1,073,812		800,507		664,529
Collections applied to investment in receivable portfolios, net(2)	(658,130)		(709,176)		(1,019,629)
Changes in recoveries(3)	(82,530)		93,145		199,136
Put-backs and Recalls	(13,606)		(9,938)		(7,249)
Deconsolidation of receivable portfolios	—		—		(9,352)
Disposals and transfers to real estate owned	(7,957)		(8,335)		(8,071)
Foreign currency translation adjustments	68,582		(143,495)		(45,729)
Balance, end of period	$	3,468,432	$	3,088,261	$	3,065,553

_______________________

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


	Year Ended December 31,
	2023		2022		2021
Purchase price	$	1,073,812	$	800,507	$	664,529
Allowance for credit losses	3,430,036		2,332,112		1,823,582
Amortized cost	4,503,848		3,132,619		2,488,111
Noncredit discount	5,333,109		3,216,500		3,284,369
Face value	9,836,957		6,349,119		5,772,480
Write-off of amortized cost	(4,503,848)		(3,132,619)		(2,488,111)
Write-off of noncredit discount	(5,333,109)		(3,216,500)		(3,284,369)
Negative allowance	1,073,812		800,507		664,529
Negative allowance for expected recoveries - current period purchases	$	1,073,812	$	800,507	$	664,529

(2)Collections applied to investment in receivable portfolios, net, is calculated as follows during the periods presented:


	Year Ended December 31,
	2023		2022		2021
Cash Collections	$	1,862,567	$	1,911,537	$	2,307,359
Less - amounts classified to revenue from receivable portfolios	(1,204,437)		(1,202,361)		(1,287,730)
Collections applied to investment in receivable portfolios, net	$	658,130	$	709,176	$	1,019,629

(3)Changes in recoveries is calculated as follows during the periods presented, where recoveries include cash collections, put-backs and recalls, and other cash-based adjustments:


	Year Ended December 31,
	2023		2022		2021
Recoveries (below) above forecast	$	(33,405)	$	29,253	$	326,006
Changes in expected future recoveries	(49,125)		63,892		(126,870)
Changes in recoveries	$	(82,530)	$	93,145	$	199,136

Recoveries above or below forecast represent over and under-performance in the reporting period, respectively. Collections during the year ended December 31, 2023, under-performed the projected cash flows by approximately $33.4 million.

Changes in expected future recoveries are reassessed each quarter, the Company considers, among other factors, historical and current collection performance, changes in consumer behavior, and the macroeconomic environment when updating the forecasts of expected lifetime recoveries. As a result, the Company has updated its forecast, including reducing expected future recoveries for certain static pools, primarily the 2022 and 2021 U.S. vintages, where the initial cash flow forecasts were established during a period marked by changed consumer behavior, which caused challenges in forecasting. The changes to the forecast, when discounted to present value, resulted in a net negative change in expected future period recoveries of approximately $49.1 million during the year ended December 31, 2023.

Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

Note 12: Leases

The majority of the Company’s leases are for corporate offices, various facilities, and information technology equipment.

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


	Year Ended December 31,
	2023		2022		2021
Operating lease costs(1)	$	15,102	$	18,403	$	17,272
Finance lease costs
Amortization of ROU assets	2,804		4,296		3,848
Interest on lease liabilities	168		312		419
Total lease costs	$	18,074	$	23,011	$	21,539

________________________

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


	Classification	December 31, 2023		December 31, 2022
Assets
Operating lease ROU assets	Other assets	$	67,019	$	70,074
Finance lease ROU assets	Property and equipment, net	18,571		18,337
Total lease ROU assets		$	85,590	$	88,411

Liabilities
Operating lease liabilities	Other liabilities	$	81,467	$	83,598
Finance lease liabilities	Borrowings	2,818		5,675
Total lease liabilities		$	84,285	$	89,273

Supplemental lease information is summarized below (in thousands):


	Year Ended December 31,
	2023		2022		2021
ROU assets obtained in exchange for new operating lease obligations	$	12,772	$	22,582	$	13,426
ROU assets obtained in exchange for new finance lease obligations	234		3,273		2,664
Cash paid for amounts included in the measurement of lease liabilities
Operating leases - operating cash flows	17,195		19,227		20,048
Finance leases - operating cash flows	165		312		419
Finance leases - financing cash flows	3,032		4,622		3,950

Lease term and discount rate were as follows:


	December 31, 2023		December 31, 2022		December 31, 2021
Weighted-average remaining lease term (in years)
Operating leases	5.7		5.9		6.2
Finance leases	1.6		2.1		2.0
Weighted-average discount rate
Operating leases	5.4	%	5.2	%	5.2	%
Finance leases	4.1	%	3.9	%	4.6	%

Maturities of lease liabilities under non-cancelable leases as of December 31, 2023 are summarized as follows (in thousands):


	Finance Leases		Operating Leases		Total
2024	$	2,013	$	17,941	$	19,954
2025	783		17,010		17,793
2026	84		16,173		16,257
2027	42		13,502		13,544
2028	—		11,423		11,423
Thereafter	—		19,417		19,417
Total undiscounted lease payments	2,922		95,466		98,388
Less: imputed interest	(104)		(13,999)		(14,103)
Total lease liabilities	$	2,818	$	81,467	$	84,285

Leases

Note 12: Leases

The majority of the Company’s leases are for corporate offices, various facilities, and information technology equipment.

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


	Year Ended December 31,
	2023		2022		2021
Operating lease costs(1)	$	15,102	$	18,403	$	17,272
Finance lease costs
Amortization of ROU assets	2,804		4,296		3,848
Interest on lease liabilities	168		312		419
Total lease costs	$	18,074	$	23,011	$	21,539

________________________

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


	Classification	December 31, 2023		December 31, 2022
Assets
Operating lease ROU assets	Other assets	$	67,019	$	70,074
Finance lease ROU assets	Property and equipment, net	18,571		18,337
Total lease ROU assets		$	85,590	$	88,411

Liabilities
Operating lease liabilities	Other liabilities	$	81,467	$	83,598
Finance lease liabilities	Borrowings	2,818		5,675
Total lease liabilities		$	84,285	$	89,273

Supplemental lease information is summarized below (in thousands):


	Year Ended December 31,
	2023		2022		2021
ROU assets obtained in exchange for new operating lease obligations	$	12,772	$	22,582	$	13,426
ROU assets obtained in exchange for new finance lease obligations	234		3,273		2,664
Cash paid for amounts included in the measurement of lease liabilities
Operating leases - operating cash flows	17,195		19,227		20,048
Finance leases - operating cash flows	165		312		419
Finance leases - financing cash flows	3,032		4,622		3,950

Lease term and discount rate were as follows:


	December 31, 2023		December 31, 2022		December 31, 2021
Weighted-average remaining lease term (in years)
Operating leases	5.7		5.9		6.2
Finance leases	1.6		2.1		2.0
Weighted-average discount rate
Operating leases	5.4	%	5.2	%	5.2	%
Finance leases	4.1	%	3.9	%	4.6	%

Maturities of lease liabilities under non-cancelable leases as of December 31, 2023 are summarized as follows (in thousands):


	Finance Leases		Operating Leases		Total
2024	$	2,013	$	17,941	$	19,954
2025	783		17,010		17,793
2026	84		16,173		16,257
2027	42		13,502		13,544
2028	—		11,423		11,423
Thereafter	—		19,417		19,417
Total undiscounted lease payments	2,922		95,466		98,388
Less: imputed interest	(104)		(13,999)		(14,103)
Total lease liabilities	$	2,818	$	81,467	$	84,285

Segment Information and Geographic Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment and Geographic Information

Note 14: Segment and Geographic Information

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


	Year Ended December 31,
	2023		2022		2021
Total revenues:
United States	$	792,443	$	995,470	$	1,115,572
Europe
United Kingdom	295,566		272,962		344,214
Other European countries(1)	134,301		129,737		142,316
Total Europe	429,867		402,699		486,530

Other geographies(1)	370		178		12,397
Total	$	1,222,680	$	1,398,347	$	1,614,499

________________________

(1) None of these countries comprise greater than 10% of the Company's consolidated revenues.


	December 31, 2023		December 31, 2022
Long-lived assets(1):
United States	$	70,361	$	82,695
International
United Kingdom	62,309		58,034
India	23,108		25,337
Other foreign countries(2)	15,200		17,908
	100,617		101,279
Total	$	170,978	$	183,974

________________________

(1)Long-lived assets consist of property and equipment, net and right of use assets.

(2)None of these countries comprise greater than 10% of the Company's consolidated long-lived assets.

- 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
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

Income Taxes - Narrative (Details) - USD ($)	12 Months Ended
Income Taxes - Narrative (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Taxes [Line Items]
Undistributed earnings	$ 152,900,000
Foreign net operating loss carryforwards	197,600,000
Increase (decrease) in valuation allowance	11,600,000
Unrecognized tax benefits, including penalties and interest	8,200,000	$ 4,900,000	$ 4,600,000
Net tax benefit from unrecognized tax benefits, if recognized	5,000,000	2,500,000	1,600,000
Unrecognized tax benefits, income tax penalties and interest expense	$ 0	$ 0	$ 0
Tax Holiday Through 2026 \| Costa Rica
Income Taxes [Line Items]
Holiday tax rate (in percent)	100.00%

Leases - Lease term and discount rate (Details)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Weighted-average remaining lease term, operating leases (years)	5 years 8 months 12 days	5 years 10 months 24 days	6 years 2 months 12 days
Weighted-average remaining lease term, finance leases (years)	1 year 7 months 6 days	2 years 1 month 6 days	2 years
Weighted-average discount rate, operating leases (percentage)	5.40%	5.20%	5.20%
Weighted-average discount rate, finance leases (percentage)	4.10%	3.90%	4.60%

Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Assets
Derivative instruments	$ 17,311	$ 36,807
Interest rate cap contracts
Assets
Derivative instruments	16,950	36,807
Interest rate cap contracts \| Level 1
Assets
Derivative instruments	0	0
Interest rate cap contracts \| Level 2
Assets
Derivative instruments	16,950	36,807
Interest rate cap contracts \| Level 3
Assets
Derivative instruments	0	0
Cross-currency swap agreements
Assets
Cross-currency swap agreements	361
Liabilities
Cross-currency swap agreements	(28,039)	(36,918)
Cross-currency swap agreements \| Level 1
Assets
Cross-currency swap agreements	0
Liabilities
Cross-currency swap agreements	0	0
Cross-currency swap agreements \| Level 2
Assets
Cross-currency swap agreements	361
Liabilities
Cross-currency swap agreements	(28,039)	(36,918)
Cross-currency swap agreements \| Level 3
Assets
Cross-currency swap agreements	0
Liabilities
Cross-currency swap agreements	0	$ 0
Interest rate swap agreements
Liabilities
Interest rate swap agreements	(22,510)
Interest rate swap agreements \| Level 1
Liabilities
Interest rate swap agreements	0
Interest rate swap agreements \| Level 2
Liabilities
Interest rate swap agreements	(22,510)
Interest rate swap agreements \| Level 3
Liabilities
Interest rate swap agreements	$ 0

Fair Value Measurements

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 2: 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.

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, 2023
	Level 1		Level 2		Level 3		Total
Assets

Interest rate cap contracts	$	—	$	16,950	$	—	$	16,950
Cross-currency swap agreements	—		361		—		361
Liabilities

Interest rate swap agreements	—		(22,510)		—		(22,510)
Cross-currency swap agreements	—		(28,039)		—		(28,039)


	Fair Value Measurements as of December 31, 2022
	Level 1		Level 2		Level 3		Total
Assets


Interest rate cap contracts	$	—	$	36,807	$	—	$	36,807
Liabilities

Cross-currency swap agreements	—		(36,918)		—		(36,918)

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. All of the Company’s contingent consideration obligations were fully resolved as of December 31, 2022. There were no new contingent liabilities resulted from mergers and acquisitions activities for the year ended December 31, 2023.

The following table provides a roll-forward of the fair value of contingent consideration, for the years ended December 31, 2022, and 2021 (in thousands):


	Amount




Balance as of December 31, 2020	$	2,957
Issuance of contingent consideration in connection with purchase of noncontrolling interest	2,913
Change in fair value of contingent consideration	(388)
Payment of contingent consideration	(180)
Effect of foreign currency translation	(84)
Balance as of December 31, 2021	5,218

Change in fair value of contingent consideration	794
Payment of contingent consideration	(5,273)
Effect of foreign currency translation	(739)
Balance as of December 31, 2022	$	—

Non-Recurring Fair Value Measurement:

Certain assets are measured at fair value on a nonrecurring basis. The fair values of goodwill and intangible assets are determined using various valuation techniques under Level 3 fair value hierarchy, refer to “Note 15, Goodwill and Intangible Assets” for further details. REO assets are 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 based on appraised values using market comparables. The fair value estimate of the assets held for sale was approximately $70.6 million and $68.2 million as of December 31, 2023 and December 31, 2022, 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 included in the consolidated statements of financial condition as of December 31, 2023 and December 31, 2022 (in thousands):


	December 31, 2023				December 31, 2022
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial Assets
Investment in receivable portfolios, net	$	3,468,432	$	3,515,651	$	3,088,261	$	3,242,506

Financial Liabilities
Global senior secured revolving credit facility	816,880		816,880		661,738		661,738
Encore private placement notes	29,310		28,922		68,390		66,947
Senior secured notes(1)	1,649,621		1,598,636		1,480,258		1,334,686
Exchangeable senior notes due September 2023	—		—		172,500		205,227
Convertible senior notes due October 2025	100,000		136,403		100,000		130,556
Convertible senior notes due March 2029	230,000		226,794		—		—
Cabot securitisation senior facility	324,646		324,646		423,522		423,522
U.S. facility	175,000		175,000		—		—
Other borrowings	24,904		24,904		23,512		23,512

________________________

(1)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.

Borrowings:

The Company’s convertible notes, exchangeable notes, senior secured notes and private placement 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 and private placement 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, securitisation senior facility and U.S. facility approximates fair value due to the use of current market rates that are repriced frequently.

- 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

Investment in Receivable Portfolios, Net - Schedule of Investment Receivable Portfolios (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Receivables [Abstract]
Amortized cost	$ 0	$ 0
Negative allowance for expected recoveries	3,468,432	3,088,261
Balance, end of period	$ 3,468,432	$ 3,088,261

- Definition

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

+ References + Details

- Definition

Amortized cost, before allowance for credit loss, of financing receivable. Excludes financing receivable covered under loss sharing agreement and net investment in lease.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 80
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-Section S99
-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

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-Name Regulation S-K (SK)
-Number 229
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-Subparagraph (1)
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
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-Topic 326
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-Name Accounting Standards Codification
-Section 50
-Paragraph 7A
-SubTopic 10
-Topic 310
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481962/310-10-50-7A

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-Topic 326
-SubTopic 20
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-Subparagraph (b)
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+ Details

Accumulated Other Comprehensive Loss (Tables)

12 Months Ended

Dec. 31, 2023

Accumulated Other Comprehensive Income [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

A summary of the Company’s changes in accumulated other comprehensive loss by component is presented below (in thousands):


	Derivatives		Currency Translation Adjustments		Accumulated Other Comprehensive Loss
Balance at December 31, 2020	$	(10,154)	$	(58,659)	$	(68,813)
Other comprehensive loss before reclassification	(31,709)		(15,309)		(47,018)
Reclassification	44,544		—		44,544
Removal of OCI in connection with divestiture	—		19,904		19,904
Tax effect	(2,165)		—		(2,165)
Balance at December 31, 2021	516		(54,064)		(53,548)
Other comprehensive income (loss) before reclassification	5,737		(78,232)		(72,495)
Reclassification	30,648		—		30,648

Tax effect	(407)		(3,014)		(3,421)
Balance at December 31, 2022	36,494		(135,310)		(98,816)
Other comprehensive (loss) income before reclassification	(41,508)		15,376		(26,132)
Reclassification	(2,970)		—		(2,970)
Tax effect	4,891		(893)		3,998
Balance at December 31, 2023	$	(3,093)	$	(120,827)	$	(123,920)

Borrowings - Encore Convertible Notes and Exchangeable Notes (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Debt issued	$ 330,000		$ 272,500
Exchangeable Notes Payable \| Exchangeable senior notes due September 2023
Debt Instrument [Line Items]
Debt issued	$ 0		172,500
Stated interest rate (as a percent)	4.50%
Convertible Notes \| 2025 Convertible Notes
Debt Instrument [Line Items]
Debt issued	$ 100,000		100,000
Stated interest rate (as a percent)	3.25%
Convertible Notes \| 2029 Convertible Notes
Debt Instrument [Line Items]
Debt issued	$ 230,000	$ 230,000	$ 0
Stated interest rate (as a percent)	4.00%	4.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Goodwill and Identifiable Intangible Assets - Weighted-Average Useful Lives of Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2023
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-average useful lives (in years)	10 years
Trade name and other
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-average useful lives (in years)	7 years

Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Note 11: Income Taxes

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


	Year Ended December 31,
	2023		2022		2021
US	$	61,356	$	331,009	$	390,607
Foreign	(241,620)		(20,020)		45,934
Total (loss) income before provision for income taxes	$	(180,264)	$	310,989	$	436,541

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


	Year Ended December 31,
	2023		2022		2021
Current expense (benefit):
Federal	$	59,558	$	59,105	$	33,582
State	17,677		11,803		5,787
Foreign	4,909		(893)		10,600
	82,144		70,015		49,969
Deferred expense (benefit):
Federal	(49,028)		8,142		49,512
State	(8,685)		6,290		5,904
Foreign	1,797		31,978		(20,045)
	(55,916)		46,410		35,371
Provision for income taxes	$	26,228	$	116,425	$	85,340

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


	Year Ended December 31,
	2023		2022		2021
Federal provision	21.0	%	21.0	%	21.0	%
State provision	(3.0)	%	5.0	%	2.3	%



Change in valuation allowance (1)	7.3	%	13.2	%	(2.3)	%
Goodwill impairment (2)	(28.3)	%	—	%	—	%
Taxable gain (deductible loss) in foreign jurisdiction (3)	2.9	%	(2.7)	%	—	%
Forfeit benefit due to merger/liquidations (4)	(14.7)	%	—	%	—	%
Other	0.3	%	0.9	%	(1.5)	%

Effective rate	(14.5)	%	37.4	%	19.5	%

________________________

(4)Represents the forfeit of tax benefits on merger or liquidation of foreign subsidiaries that maintained full valuation allowances on their deferred tax assets.

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 years ended December 31, 2023, 2022 and 2021 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, 2023, were approximately $152.9 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 and therefore no U.S. taxes have been provided.

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, 2023		December 31, 2022
Deferred tax assets:
Net operating losses	$	50,061	$	70,543
Operating lease liabilities	16,938		12,222
Accrued expenses	9,048		10,800
Difference in basis of bond and loan costs	4,155		—
Difference in basis of receivable portfolio	22,070		23,751
Stock-based compensation	3,916		4,960
Difference in basis of depreciable and amortizable assets	1,957		2,057
Other	5,303		2,396
Total deferred tax assets	113,448		126,729
Valuation allowance	(54,993)		(66,625)
Total deferred tax assets net of valuation allowance	58,455		60,104
Deferred tax liabilities:
Accrued expenses	(76)		(443)
Difference in basis of bond and loan costs	(445)		(1,003)
Difference in basis of receivable portfolio	(56,263)		(109,787)
Stock-based compensation	—		(970)
Right-of-use asset	(14,306)		(9,794)
Difference in basis of depreciable and amortizable assets	(8,596)		(16,807)
Prepaid expenses	(545)		(875)
Other	(3,087)		(10,206)
Total deferred tax liabilities	(83,318)		(149,885)
Net deferred tax liability(1)	$	(24,863)	$	(89,781)

________________________

As of December 31, 2023, certain of the Company’s foreign subsidiaries have net operating loss carry forwards of approximately $197.6 million, which will begin to expire in 2024. Certain of the Company’s domestic subsidiaries have state net operating losses, which will begin to expire in 2035.

Valuation allowances are recorded against deferred tax assets, including certain net operating losses recorded as deferred tax assets, if the Company believes it is more likely than not that some or all of the deferred tax assets will not be realized. As of December 31, 2023, valuation allowances decreased by $11.6 million, as compared to December 31, 2022. The decrease in valuation allowance is primarily related to the forfeit of tax benefits on merger or liquidation of foreign subsidiaries that maintained full valuation allowances on their deferred tax assets.

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


	Amount




















Balance as of December 31, 2020	$	6,781
Decrease related to prior year tax positions	(2,034)
Decrease related to expiration of statute of limitations	(712)
Increase related to prior year tax positions	261
Increase related to current year tax positions	251
Balance as of December 31, 2021	4,547
Decrease related to prior year tax positions	(1,296)
Decrease related to settlements with taxing authorities	(713)
Decrease related to expiration of statute of limitations	(115)
Increase related to prior year tax positions	874
Increase related to current year tax positions	691
Balance as of December 31, 2022	3,988
Increase related to prior year tax positions	2,302
Increase related to current year tax positions	649
Decrease related to expiration of statute of limitations	(69)
Other	91
Balance as of December 31, 2023	$	6,961

The Company had gross unrecognized tax benefits, inclusive of penalties and interest, of $8.2 million, $4.9 million and $4.6 million as of December 31, 2023, 2022, and 2021 respectively. As of December 31, 2023, 2022 and 2021, there was $5.0 million, $2.5 million and $1.6 million, respectively, of unrecognized tax benefit that if recognized, would result in a net tax benefit. During the year ended December 31, 2023, the increase in the Company's gross unrecognized tax benefit was primarily due a prior year position related to a domestic entity. During the years ended December 31, 2022 and 2021, the decreases in the Company's gross unrecognized tax benefit were primarily due to the release of prior year positions related to foreign entities.

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 income tax as a component of the provision for income taxes. Interest and penalties expensed during the years ended December 31, 2023, 2022 and 2021 were immaterial. Interest and penalties accrued as of December 31, 2023, 2022 and 2021 were immaterial.

The Company files federal, state and non-U.S. income tax returns in jurisdictions with varying statutes of limitations. The Company is subject to 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. In general, the Company is subject to examination for tax years after December 31, 2019 for the U.S. federal jurisdiction, after December 31, 2019 for U.S state jurisdictions, and after December 31, 2018 in major foreign jurisdictions.

The Company's management regularly assesses the likelihood of adverse outcomes resulting from examinations, if any, 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

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-Topic 235
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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+ Details

Borrowings (Tables)

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Schedule of Consolidated Debt and Capital Lease Obligations

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


	December 31, 2023		December 31, 2022
Global senior secured revolving credit facility	$	816,880	$	661,738
Encore private placement notes	29,310		68,390
Senior secured notes	1,654,989		1,485,888
Convertible notes and exchangeable notes	330,000		272,500
Cabot securitisation senior facility	324,646		423,522
U.S. facility	175,000		—
Other	24,904		23,512
Finance lease liabilities	2,818		5,675
	3,358,547		2,941,225
Less: debt discount and issuance costs, net of amortization	(40,516)		(42,404)
Total	$	3,318,031	$	2,898,821

Schedule of Notes

The following table provides a summary of the Company’s senior secured notes (the “Senior Secured Notes”) ($ in thousands):


	December 31, 2023		December 31, 2022		Issue Currency	Maturity Date	Interest Payment Dates	Interest Rate


Encore 2025 Notes	$	386,324	$	375,325	EUR	Oct 15, 2025	Apr 15, Oct 15	4.875	%
Encore 2026 Notes	381,937		363,019		GBP	Feb 15, 2026	Feb 15, Aug 15	5.375	%
Encore 2028 Notes	318,280		302,516		GBP	Jun 1, 2028	Jun 1, Dec 1	4.250	%
Encore 2028 Floating Rate Notes	568,448		445,028		EUR	Jan 15, 2028	Jan 15, Apr 15, Jul 15, Oct 15	EURIBOR +4.250%(1)
	$	1,654,989	$	1,485,888

______________________

(1) Interest rate is based on three-month EURIBOR (subject to a 0% floor) plus 4.250% per annum, resets quarterly.


	December 31, 2023		December 31, 2022		Maturity Date	Interest Payment Dates	Interest Rate
2023 Exchangeable Notes	$	—	$	172,500	Sep 1, 2023	Mar 1, Sep 1	4.500	%
2025 Convertible Notes	100,000		100,000		Oct 1, 2025	Apr 1, Oct 1	3.250	%
2029 Convertible Notes	230,000		—		Mar 15, 2029	Mar 15, Sep 15	4.000	%
	$	330,000	$	272,500

Schedule of Hedge Program for Convertible Notes

Certain key terms related to the convertible features as of December 31, 2023 are listed below ($ in thousands, except conversion or exchange price):


	2025 Convertible Notes		2029 Convertible Notes
Initial conversion price	$	40.00	$	65.89
Closing stock price at date of issuance	$	32.00	$	51.68
Closing stock price date	Sep 4, 2019		Feb 28, 2023
Initial conversion rate (shares per $1,000 principal amount)	25.0000		15.1763
Adjusted conversion rate (shares per $1,000 principal amount)	25.1310		15.1763
Adjusted conversion price(1)	$	39.79	$	65.89
Adjusted effective conversion price(2)	$	39.79	$	82.69
Excess of if-converted value compared to principal(3)	$	27,540	$	—
Conversion date	Jul 1, 2025		Dec 15, 2028

______________________

(2)As discussed above, the Company maintains a hedge program that increases the effective conversion price for the 2029 Convertible Notes to $82.69.

Summary of Debt Including Capital Lease Obligations Maturities

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


2024	$	41,363
2025	494,333
2026	560,887
2027	819,319
2028	1,211,374
Thereafter	231,271
Total	$	3,358,547

- 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.

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