Operating Segment Information

12 Months Ended

Dec. 31, 2012

Segment Reporting, Measurement Disclosures [Abstract]

Operating Segment Information

21. Operating Segment Information

The Company has two reportable operating segments: retail services and e-commerce. The retail services segment includes all of the operations of the Company's Retail Services Division, which is composed of both domestic and foreign storefront locations that offer some or all of the following services: pawn loans, consumer loans, the purchase and sale of merchandise, check cashing and other ancillary services such as money orders, wire transfers, prepaid debit cards, tax filing services and auto insurance. Most of these ancillary services offered in the retail services segment are provided through third-party vendors. The e-commerce segment includes the operations of the Company's E-Commerce Division, which is composed of the Company's domestic and foreign online lending channels through which the Company offers consumer loans. In the e-commerce segment, certain administration expenses are allocated between the domestic and foreign components based on the amount of loans written and renewed.

During the first quarter of 2012, the Company changed the presentation of its operating segment information to report corporate operations separately from its retail services and e-commerce segment information. Corporate administrative expense, which was previously allocated to each segment based on personnel expense, is included under the “Corporate” heading in the following tables. For comparison purposes, operations and administration expenses for prior years have been conformed to the current presentation. Corporate operations primarily include corporate expenses, such as legal, occupancy, and other costs related to corporate service functions, such as executive oversight, insurance and risk management, public and government relations, internal audit, treasury, payroll, compliance and licensing, finance, accounting, tax and information systems (except for online lending systems, which are included in the e-commerce segment). Corporate income includes miscellaneous income not directly attributable to the Company's segments. Corporate assets primarily include: corporate property and equipment, nonqualified savings plan assets, marketable securities, foreign exchange forward contracts and prepaid insurance.

The following tables contain operating segment data for the years ended December 31, 2012, 2011 and 2010 (dollars in thousands):

	Retail Services						E-Commerce
	Domestic		Foreign		Total		Domestic		Foreign		Total		Corporate		Consolidated
Year Ended December 31, 2012
Revenue
Pawn loan fees and service charges	$	288,161	$	12,768	$	300,929	$	-	$	-	$	-	$	-	$	300,929
Proceeds from disposition of merchandise		657,104		46,663		703,767		-		-		-		-		703,767
Consumer loan fees		121,892		-		121,892		332,752		326,876		659,628		-		781,520
Other		9,028		1,209		10,237		1,326		33		1,359		2,618		14,214
Total revenue		1,076,185		60,640		1,136,825		334,078		326,909		660,987		2,618		1,800,430
Cost of revenue
Disposed merchandise		437,099		41,080		478,179		-		-		-		-		478,179
Consumer loan loss provision		29,225		-		29,225		143,006		144,063		287,069		-		316,294
Total cost of revenue		466,324		41,080		507,404		143,006		144,063		287,069		-		794,473
Net revenue		609,861		19,560		629,421		191,072		182,846		373,918		2,618		1,005,957
Expenses
Operations and administration		369,174		44,287		413,461		116,202		118,156		234,358		66,795		714,614
Depreciation and amortization		30,978		16,634		47,612		11,987		1,285		13,272		14,544		75,428
Total expenses		400,152		60,921		461,073		128,189		119,441		247,630		81,339		790,042
Income (loss) from operations	$	209,709	$	(41,361)	$	168,348	$	62,883	$	63,405	$	126,288	$	(78,721)	$	215,915
Interest Expense	$	-	$	(77)	$	(77)	$	-	$	-	$	-	$	(29,054)	$	(29,131)
Equity in loss of unconsolidated subsidiary	$	-	$	-	$	-	$	-	$	-	$	-	$	(295)	$	(295)
Provision for income taxes	$	77,474	$	2,183	$	79,657	$	16,556	$	21,947	$	38,503	$	(33,504)	$	84,656
Expenditures for property and equipment	$	43,028	$	3,773	$	46,801	$	15,498	$	2,374	$	17,872	$	14,726	$	79,399
As of December 31, 2012
Total assets	$	1,031,431	$	85,607	$	1,117,038	$	391,068	$	179,554	$	570,622	$	130,598	$	1,818,258
Goodwill					$	397,845					$	210,371			$	608,216

	Retail Services						E-Commerce
	Domestic		Foreign		Total		Domestic		Foreign		Total		Corporate		Consolidated
Year Ended December 31, 2011
Revenue
Pawn loan fees and service charges	$	261,829	$	20,368	$	282,197	$	-	$	-	$	-	$	-	$	282,197
Proceeds from disposition of merchandise		636,698		52,156		688,854		30		-		30		-		688,884
Consumer loan fees		119,192		-		119,192		254,152		225,302		479,454		-		598,646
Other		11,170		545		11,715		593		286		879		743		13,337
Total revenue		1,028,889		73,069		1,101,958		254,775		225,588		480,363		743		1,583,064
Cost of revenue
Disposed merchandise		405,132		42,462		447,594		23		-		23		-		447,617
Consumer loan loss provision		24,001		-		24,001		90,535		111,152		201,687		-		225,688
Total cost of revenue		429,133		42,462		471,595		90,558		111,152		201,710		-		673,305
Net revenue		599,756		30,607		630,363		164,217		114,436		278,653		743		909,759
Expenses
Operations and administration		339,247		33,604		372,851		88,577		84,544		173,121		65,296		611,268
Depreciation and amortization		26,165		5,871		32,036		10,413		850		11,263		10,850		54,149
Total expenses		365,412		39,475		404,887		98,990		85,394		184,384		76,146		665,417
Income (loss) from operations	$	234,344	$	(8,868)	$	225,476	$	65,227	$	29,042	$	94,269	$	(75,403)	$	244,342
Interest Expense	$	-	$	(71)	$	(71)	$	-	$	-	$	-	$	(25,457)	$	(25,528)
Equity in loss of unconsolidated subsidiary	$	-	$	-	$	-	$	-	$	-	$	-	$	(104)	$	(104)
Provision for income taxes	$	87,940	$	(5,187)	$	82,753	$	18,611	$	9,474	$	28,085	$	(28,478)	$	82,360
Expenditures for property and equipment	$	39,038	$	8,345	$	47,383	$	13,866	$	1,207	$	15,073	$	12,593	$	75,049
As of December 31, 2011
Total assets	$	941,801	$	117,470	$	1,059,271	$	352,244	$	135,774	$	488,018	$	126,960	$	1,674,249
Goodwill					$	352,439					$	210,282			$	562,721

	Retail Services						E-Commerce
	Domestic		Foreign		Total		Domestic		Foreign		Total		Corporate		Consolidated
Year Ended December 31, 2010
Revenue
Pawn loan fees and service charges	$	221,335	$	22,378	$	243,713	$	-	$	-	$	-	$	-	$	243,713
Proceeds from disposition of merchandise		534,878		53,312		588,190		-		-		-		-		588,190
Consumer loan fees		113,973		-		113,973		275,036		101,943		376,979		-		490,952
Other		10,875		303		11,178		1,259		79		1,338		1,679		14,195
Total revenue		881,061		75,993		957,054		276,295		102,022		378,317		1,679		1,337,050
Cost of revenue
Disposed merchandise		338,756		43,711		382,467		-		-		-		-		382,467
Consumer loan loss provision		17,437		-		17,437		116,246		48,711		164,957		-		182,394
Total cost of revenue		356,193		43,711		399,904		116,246		48,711		164,957		-		564,861
Net revenue		524,868		32,282		557,150		160,049		53,311		213,360		1,679		772,189
Expenses
Operations and administration		304,467		25,295		329,762		93,928		42,242		136,170		55,202		521,134
Depreciation and amortization		21,771		5,525		27,296		8,283		276		8,559		8,068		43,923
Total expenses		326,238		30,820		357,058		102,211		42,518		144,729		63,270		565,057
Income (loss) from operations	$	198,630	$	1,462	$	200,092	$	57,838	$	10,793	$	68,631	$	(61,591)	$	207,132
Interest Expense	$	-	$	(94)	$	(94)	$	-	$	-	$	-	$	(22,251)	$	(22,345)
Equity in loss of unconsolidated subsidiary	$	-	$	-	$	-	$	-	$	-	$	-	$	(136)	$	(136)
Provision for income taxes	$	73,257	$	(847)	$	72,410	$	15,148	$	3,274	$	18,422	$	(21,563)	$	69,269
Expenditures for property and equipment	$	24,943	$	6,259	$	31,202	$	9,710	$	2,977	$	12,687	$	15,808	$	59,697
As of December 31, 2010
Total assets		808,445		123,044		931,489		312,642		61,804		374,446		121,251		1,427,186
Goodwill						333,042						210,282				543,324

Geographic Information

The following table presents the Company's revenue and long-lived assets by geographic region for the years ended December 31, 2012, 2011 and 2010 (dollars in thousands):

	Year Ended December 31,
	2012		2011		2010
Revenue
United States	$	1,412,881	$	1,284,407	$	1,159,035
Mexico		60,678		73,069		75,993
United Kingdom		308,464		211,915		96,222
Other foreign countries		18,407		13,673		5,800
Total revenue	$	1,800,430	$	1,583,064	$	1,337,050
	As of December 31,
Long-lived assets	2012		2011
United States	$	254,809	$	233,052
Mexico		6,962		13,377
Total long-lived assets	$	261,771	$	246,429

With respect to the e-commerce segment, the operations for the Company's domestic and foreign channels are primarily located within the United States, and the value of any long-lived assets located outside of the United States is immaterial.