Segments and Geographic Information:
The Company has determined that it is managed on a consolidated basis under a single operating segment; ARM, and accordingly, it has one reportable segment. The ARM segment is comprised of the Company's primary business, Debt Buying and Collection ("DBC"), which generates revenue through the purchase, collection and management of portfolios of nonperforming loans, and Claims Compensation Bureau, LLC ("CCB"), which generates revenue through the purchase of, and provision of fee-based services for, class action claims recoveries in the U.S. In previous years, DBC and CCB were determined to be separate operating segments and aggregated to form the ARM reportable segment. The change to a single operating segment in the current year was primarily due to organizational changes, including further integration of the Company's global operations.
The organization of the Company under a single reportable segment largely reflects the cross-geographic similarities between the Company's primary products and services and its core operational processes of purchasing portfolios of nonperforming loans and collecting on the accounts.
The CODM is the Company’s CEO, who assesses performance based on the Company's consolidated results prepared in accordance with GAAP. The CODM makes resource allocation decisions considering Net income/(loss) attributable to PRA Group, Inc. as reported in the Company’s Consolidated Income Statements. The CODM uses Net income/(loss) attributable to PRA Group, Inc. to review actual results in comparison with budgeted and forecasted results and in deciding how to allocate resources, which may include decisions about employees, properties, operational initiatives and financial and capital resources. Net income/(loss) attributable to PRA Group, Inc. is also used in the performance of peer analysis and as an input in determining management compensation.
Segment revenue, significant segment expenses and profit or loss
ARM segment revenue is presented in the Company's Consolidated Income Statements under Total revenues. Significant segment expenses regularly considered by the CODM are those segment expenses most directly related to the Company's revenue generating activities and are presented in the Company's Consolidated Income Statements, consisting of, Compensation and benefits, Legal collection fees, Legal collection costs, Agency fees, Professional and outside services and Communication. All other operating expenses appearing in the Consolidated Income Statements constitute other segment items. ARM segment profit or loss is presented in the Company's Consolidated Income Statements under Net Income/(loss) attributable to PRA Group, Inc.
Segment assets
ARM segment assets are presented in the Company's Consolidated Balance Sheets under Total assets.
Other significant segment items
Other significant segment items not presented in the Company's Consolidated Income Statements or Consolidated Balance Sheets for the years ended December 31, 2024, 2023 and 2022 were as follows (amounts in thousands):
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| |
| 2024 | | 2023 | | 2022 |
| Interest expense | $ | 238,568 | | | $ | 194,667 | | | $ | 132,905 | |
| Interest income | 9,301 | | | 12,943 | | | 2,228 | |
| Depreciation and amortization | 10,792 | | | 13,376 | | | 15,243 | |
| Purchases of property and equipment, net | 4,045 | | | 2,887 | | | 13,251 | |
| Equity method investment (year-end) | 8,694 | | | 10,483 | | | 8,762 | |
Revenues and long-lived assets by geographical location
Revenues for the years ended December 31, 2024, 2023 and 2022, and long-lived assets held as of December 31, 2024 and 2023, by geographic area in which the Company operates, were as follows (amounts in thousands):
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| | | |
| 2024 | | 2023 | | 2022 | | 2024 | | 2023 |
| Revenues (2) | | Long-Lived Assets (3) |
| United States | $ | 593,928 | | | $ | 358,251 | | | $ | 520,747 | | | $ | 43,068 | | | $ | 58,452 | |
| United Kingdom | 161,905 | | | 119,963 | | | 181,725 | | | 9,957 | | | 11,377 | |
| Brazil | 103,933 | | | 95,556 | | | 36,412 | | | 10 | | | 3 | |
Other (1) | 254,758 | | | 228,784 | | | 227,640 | | | 8,636 | | | 12,495 | |
| Total | $ | 1,114,524 | | | $ | 802,554 | | | $ | 966,524 | | | $ | 61,671 | | | $ | 82,327 | |
(1)None of the countries included in Other comprise greater than 10% of the Company's consolidated revenues or long-lived assets.
(2)Based on the Company’s financial statement information used to produce the Company's general-purpose financial statements, it is impracticable to report further breakdowns of revenues from external customers.
(3)Long-lived assets are comprised of Property and equipment, net and ROU assets.