Segment Reporting |
Segment Reporting We operate primarily within one industry consisting of two reportable segments by which we manage our business. Our two reportable segments are: Credit and Other Investments, and Auto Finance. We renamed our Credit Cards and Other Investments segment as the Credit and Other Investments segment to encompass ancillary investments and product offerings that are largely start-up in nature and do not qualify for separate segment reporting. All prior period data have been reclassified to this new current period presentation.
As of both June 30, 2014 and December 31, 2013, we did not have a material amount of long-lived assets located outside of the U.S., and only a negligible portion of our 2014 and 2013 revenues were generated outside of the U.S. Summary operating segment information (in thousands) is as follows: | | | | | | | | | | | | | | Three months ended June 30, 2014 | | Credit and Other Investments | | Auto Finance | | Total | Interest income: | | | | | | | Consumer loans, including past due fees | | $ | 11,492 |
| | $ | 5,895 |
| | $ | 17,387 |
| Other | | 37 |
| | — |
| | 37 |
| Total interest income | | 11,529 |
| | 5,895 |
| | 17,424 |
| Interest expense | | (5,812 | ) | | (346 | ) | | (6,158 | ) | Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable | | $ | 5,717 |
| | $ | 5,549 |
| | $ | 11,266 |
| Fees and related income on earning assets | | $ | 22,155 |
| | $ | 41 |
| | $ | 22,196 |
| Servicing income | | $ | 1,075 |
| | $ | 159 |
| | $ | 1,234 |
| Depreciation of rental merchandise | | (15,735 | ) | | — |
| | (15,735 | ) | Equity in income of equity-method investees | | $ | 841 |
| | $ | — |
| | $ | 841 |
| (Loss) income before income taxes | | $ | (11,661 | ) | | $ | 1,156 |
| | $ | (10,505 | ) | Income tax expense | | $ | (316 | ) | | $ | (357 | ) | | $ | (673 | ) |
| | | | | | | | | | | | | | Six months ended June 30, 2014 | | Credit and Other Investments | | Auto Finance | | Total | Interest income: | | | | | | | Consumer loans, including past due fees | | $ | 25,888 |
| | $ | 11,456 |
| | $ | 37,344 |
| Other | | 274 |
| | — |
| | 274 |
| Total interest income | | 26,162 |
| | 11,456 |
| | 37,618 |
| Interest expense | | (11,644 | ) | | (701 | ) | | (12,345 | ) | Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable | | $ | 14,518 |
| | $ | 10,755 |
| | $ | 25,273 |
| Fees and related income on earning assets | | $ | 54,957 |
| | $ | 124 |
| | $ | 55,081 |
| Servicing income | | $ | 2,130 |
| | $ | 344 |
| | $ | 2,474 |
| Depreciation of rental merchandise | | (40,746 | ) | | — |
| | (40,746 | ) | Equity in income of equity-method investees | | $ | 3,247 |
| | $ | — |
| | $ | 3,247 |
| (Loss) income before income taxes | | $ | (21,724 | ) | | $ | 2,178 |
| | $ | (19,546 | ) | Income tax expense | | $ | (1,971 | ) | | $ | (684 | ) | | $ | (2,655 | ) | Total assets | | $ | 237,163 |
| | $ | 62,089 |
| | $ | 299,252 |
|
| | | | | | | | | | | | | | Three months ended June 30, 2013 | | Credit and Other Investments | | Auto Finance | | Total | Interest income: | | | | | | | Consumer loans, including past due fees | | $ | 10,866 |
| | $ | 5,815 |
| | $ | 16,681 |
| Other | | 37 |
| | 47 |
| | 84 |
| Total interest income | | 10,903 |
| | 5,862 |
| | 16,765 |
| Interest expense | | (5,603 | ) | | (263 | ) | | (5,866 | ) | Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable | | $ | 5,300 |
| | $ | 5,599 |
| | $ | 10,899 |
| Fees and related income on earning assets | | $ | 12,581 |
| | $ | (2,362 | ) | | $ | 10,219 |
| Servicing income | | $ | 2,404 |
| | $ | 200 |
| | $ | 2,604 |
| Depreciation of rental merchandise | | — |
| | — |
| | — |
| Equity in income of equity-method investees | | $ | 957 |
| | $ | — |
| | $ | 957 |
| (Loss) income before income taxes | | $ | (8,794 | ) | | $ | (534 | ) | | $ | (9,328 | ) | Income tax expense | | $ | (101 | ) | | $ | (361 | ) | | $ | (462 | ) |
| | | | | | | | | | | | | | Six months ended June 30, 2013 | | Credit and Other Investments | | Auto Finance | | Total | Interest income: | | | | | | | Consumer loans, including past due fees | | $ | 24,910 |
| | $ | 11,595 |
| | $ | 36,505 |
| Other | | 78 |
| | 117 |
| | 195 |
| Total interest income | | 24,988 |
| | 11,712 |
| | 36,700 |
| Interest expense | | (10,942 | ) | | (696 | ) | | (11,638 | ) | Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable | | $ | 14,046 |
| | $ | 11,016 |
| | $ | 25,062 |
| Fees and related income on earning assets | | $ | 19,321 |
| | $ | (2,296 | ) | | $ | 17,025 |
| Servicing income | | $ | 4,804 |
| | $ | 401 |
| | $ | 5,205 |
| Depreciation of rental merchandise | | — |
| | — |
| | — |
| Equity in income of equity-method investees | | $ | 5,264 |
| | $ | — |
| | $ | 5,264 |
| (Loss) income before income taxes | | $ | (12,765 | ) | | $ | 896 |
| | $ | (11,869 | ) | Income tax expense | | $ | (179 | ) | | $ | (729 | ) | | $ | (908 | ) | Total assets | | $ | 292,342 |
| | $ | 59,088 |
| | $ | 351,430 |
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