| 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.
As of both September 30, 2016 and December 31, 2015, we did not have a material amount of long-lived assets located outside of the U.S., and only a negligible portion of our revenues for the nine months ended September 30, 2016 and 2015 were generated outside of the U.S.
We measure the profitability of our reportable segments based on their income after allocation of specific costs and corporate overhead; however, our segment results do not reflect any charges for internal capital allocations among our segments. Overhead costs are allocated based on headcounts and other applicable measures to better align costs with the associated revenues.
Summary operating segment information (in thousands) is as follows: | | | | | | | | | | | | | | Three months ended September 30, 2016 | | Credit and Other Investments | | Auto Finance | | Total | Interest income: | | | | | | | Consumer loans, including past due fees | | $ | 16,701 |
| | $ | 7,352 |
| | $ | 24,053 |
| Other | | 36 |
| | — |
| | 36 |
| Total interest income | | 16,737 |
| | 7,352 |
| | 24,089 |
| Interest expense | | (4,944 | ) | | (313 | ) | | (5,257 | ) | Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable | | $ | 11,793 |
| | $ | 7,039 |
| | $ | 18,832 |
| Fees and related income on earning assets | | $ | 92 |
| | $ | (17 | ) | | $ | 75 |
| Servicing income | | $ | 645 |
| | $ | 240 |
| | $ | 885 |
| Gain on repurchase of convertible senior notes | | $ | — |
| | $ | — |
| | $ | — |
| Depreciation of rental merchandise | | $ | (458 | ) | | $ | — |
| | $ | (458 | ) | Equity in income of equity-method investee | | $ | 629 |
| | $ | — |
| | $ | 629 |
| (Loss) income before income taxes | | $ | (15,709 | ) | | $ | 1,978 |
| | $ | (13,731 | ) | Income tax benefit (expense) | | $ | 5,296 |
| | $ | (630 | ) | | $ | 4,666 |
| | | | | | | | Nine months ended September 30, 2016 | | Credit and Other Investments | | Auto Finance | | Total | Interest income: | | | | | | | Consumer loans, including past due fees | | $ | 42,018 |
| | $ | 21,645 |
| | $ | 63,663 |
| Other | | 188 |
| | — |
| | 188 |
| Total interest income | | 42,206 |
| | 21,645 |
| | 63,851 |
| Interest expense | | (13,735 | ) | | (958 | ) | | (14,693 | ) | Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable | | $ | 28,471 |
| | $ | 20,687 |
| | $ | 49,158 |
| Fees and related income on earning assets | | $ | 13,761 |
| | $ | 79 |
| | $ | 13,840 |
| Servicing income | | $ | 2,569 |
| | $ | 744 |
| | $ | 3,313 |
| Gain on repurchase of convertible senior notes | | $ | 1,037 |
| | $ | — |
| | $ | 1,037 |
| Depreciation of rental merchandise | | $ | (5,172 | ) | | $ | — |
| | $ | (5,172 | ) | Equity in income of equity-method investee | | $ | 1,956 |
| | $ | — |
| | $ | 1,956 |
| (Loss) income before income taxes | | $ | (13,047 | ) | | $ | 4,996 |
| | $ | (8,051 | ) | Income tax benefit (expense) | | $ | 5,500 |
| | $ | (1,689 | ) | | $ | 3,811 |
| Total assets | | $ | 267,390 |
| | $ | 68,440 |
| | $ | 335,830 |
|
| | | | | | | | | | | | | | Three months ended September 30, 2015 | | Credit and Other Investments | | Auto Finance | | Total | Interest income: | | | | | | | Consumer loans, including past due fees | | $ | 9,902 |
| | $ | 6,961 |
| | $ | 16,863 |
| Other | | 10 |
| | — |
| | 10 |
| Total interest income | | 9,912 |
| | 6,961 |
| | 16,873 |
| Interest expense | | (4,349 | ) | | (304 | ) | | (4,653 | ) | Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable | | $ | 5,563 |
| | $ | 6,657 |
| | $ | 12,220 |
| Fees and related income on earning assets | | $ | 14,577 |
| | $ | 2,100 |
| | $ | 16,677 |
| Servicing income | | $ | 890 |
| | $ | 234 |
| | $ | 1,124 |
| Depreciation of rental merchandise | | $ | (9,847 | ) | | $ | — |
| | $ | (9,847 | ) | Equity in income of equity-method investee | | $ | 431 |
| | $ | — |
| | $ | 431 |
| (Loss) income before income taxes | | $ | (3,853 | ) | | $ | 3,379 |
| | $ | (474 | ) | Income tax benefit (expense) | | $ | 2,067 |
| | $ | (1,164 | ) | | $ | 903 |
| | | | | | | | Nine months ended September 30, 2015 | | Credit and Other Investments | | Auto Finance | | Total | Interest income: | | | | | | | Consumer loans, including past due fees | | $ | 30,520 |
| | $ | 20,655 |
| | $ | 51,175 |
| Other | | 52 |
| | — |
| | 52 |
| Total interest income | | 30,572 |
| | 20,655 |
| | 51,227 |
| Interest expense | | (12,828 | ) | | (911 | ) | | (13,739 | ) | Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable | | $ | 17,744 |
| | $ | 19,744 |
| | $ | 37,488 |
| Fees and related income on earning assets | | $ | 40,333 |
| | $ | 2,314 |
| | $ | 42,647 |
| Servicing income | | $ | 3,428 |
| | $ | 646 |
| | $ | 4,074 |
| Depreciation of rental merchandise | | $ | (31,470 | ) | | $ | — |
| | $ | (31,470 | ) | Equity in income of equity-method investee | | $ | 2,213 |
| | $ | — |
| | $ | 2,213 |
| (Loss) income before income taxes | | $ | (3,246 | ) | | $ | 6,956 |
| | $ | 3,710 |
| Income tax benefit (expense) | | $ | 2,419 |
| | $ | (2,338 | ) | | $ | 81 |
| Total assets | | $ | 201,706 |
| | $ | 69,310 |
| | $ | 271,016 |
|
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