Finance Receivables, net:

Changes in finance receivables, net for the three months ended March 31, 2015 and 2014 were as follows (amounts in thousands):



	Three Months Ended March 31,
	2015			2014
Balance at beginning of period	$	2,001,790		$	1,239,191
Acquisitions of finance receivables ⁽¹⁾	183,828			150,087
Foreign currency translation adjustment	(59,502		)	80
Cash collections	(399,747		)	(313,367		)
Income recognized on finance receivables, net	228,403			177,970
Cash collections applied to principal	(171,344		)	(135,397		)
Balance at end of period	$	1,954,772		$	1,253,961

(1) Acquisitions of finance receivables are net of buybacks and include certain capitalized acquisition related costs.

At the time of acquisition, the life of each pool is generally estimated to be between 80 and 120 months based on projected amounts and timing of future cash collections using the proprietary models of the Company. At March 31, 2015, the weighted average remaining life of the Company's pools is estimated to be approximately 99 months. Based upon current projections, cash collections applied to principal on finance receivables as of March 31, 2015 are estimated to be as follows for the twelve months in the periods ending (amounts in thousands):



March 31, 2016	$	549,385
March 31, 2017	435,274
March 31, 2018	348,119
March 31, 2019	271,240
March 31, 2020	165,051
March 31, 2021	101,106
March 31, 2022	80,591
March 31, 2023	4,006
	$	1,954,772

At March 31, 2015, the Company had unamortized purchased principal (purchase price) in pools accounted for under the cost recovery method of $18.1 million; at December 31, 2014, the amount was $17.1 million.

Accretable yield represents the amount of income recognized on finance receivables the Company can expect to generate over the remaining life of its existing portfolios based on estimated future cash flows as of the balance sheet date. Additions represent the original expected accretable yield, on portfolios purchased during the period, to be earned by the Company based on its proprietary buying models. Net reclassifications from nonaccretable difference to accretable yield primarily result from the Company’s increase in its estimate of future cash flows. When applicable, net reclassifications to nonaccretable difference from accretable yield result from the Company’s decrease in its estimates of future cash flows and allowance charges that exceed the Company’s increase in its estimate of future cash flows. Changes in accretable yield for the three months ended March 31, 2015 and 2014 were as follows (amounts in thousands):



	Three Months Ended March 31,
	2015			2014
Balance at beginning of period	$	2,513,185		$	1,430,067
Income recognized on finance receivables, net	(228,403		)	(177,970		)
Additions	172,382			106,197
Net reclassifications from nonaccretable difference	119,252			91,636
Foreign currency translation adjustment	(72,260		)	1,071
Balance at end of period	$	2,504,156		$	1,451,001

The following is a summary of activity within the Company’s valuation allowance account, all of which relates to loans acquired with deteriorated credit quality, for the three months ended March 31, 2015 and 2014 (amounts in thousands):



	Three Months Ended March 31,
	2015			2014
Beginning balance	$	86,166		$	91,101
Allowance charges	2,685			1,387
Reversal of previous recorded allowance charges	(1,055		)	(3,340		)
Net allowance charges/(reversals)	1,630			(1,953		)
Ending balance	$	87,796		$	89,148