Operating Segment Information

12 Months Ended

Dec. 31, 2013

Segment Reporting, Measurement Disclosures [Abstract]

Operating Segment Information

20. 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 products and services such as money orders, wire transfers, prepaid debit cards, tax filing services and auto insurance. Most of these ancillary products and 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. The e-commerce segment also includes administrative expenses that are specific to this segment's operations and are supplemental to the Company's administrative functions classified as corporate operations.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.

The Company reports corporate operations separately from its retail services and e-commerce segment information. Corporate operations primarily include corporate expenses, such as legal, occupancy, 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, assets related to nonqualified deferred compensation plans, marketable securities, foreign exchange forward contracts and prepaid insurance.

The following tables contain operating segment data for the years ended December 31, 2013, 2012 and 2011 (dollars in thousands):

	Retail Services								E-Commerce
	Domestic		Foreign		Total		Domestic		Foreign		Total		Corporate		Consolidated
Year Ended December 31, 2013
Revenue
Pawn loan fees and service charges	$	304,511	$	7,288	$	311,799	$	-	$	-	$	-	$	-	$	311,799
Proceeds from disposition of merchandise		576,707		18,732		595,439		-		-		-		-		595,439
Consumer loan fees		113,211		-		113,211		394,472		370,500		764,972		-		878,183
Other		7,818		1,076		8,894		1,095		102		1,197		1,714		11,805
Total revenue		1,002,247		27,096		1,029,343		395,567		370,602		766,169		1,714		1,797,226
Cost of revenue
Disposed merchandise		394,370		16,243		410,613		-		-		-		-		410,613
Consumer loan loss provision		33,359		-		33,359		159,291		158,605		317,896		-		351,255
Total cost of revenue		427,729		16,243		443,972		159,291		158,605		317,896		-		761,868
Net revenue		574,518		10,853		585,371		236,276		211,997		448,273		1,714		1,035,358
Expenses
Operations and administration		388,029		13,448		401,477		143,626		134,879		278,505		70,322		750,304
Depreciation and amortization		37,643		1,997		39,640		14,535		2,608		17,143		16,488		73,271
Total expenses		425,672		15,445		441,117		158,161		137,487		295,648		86,810		823,575
Income (loss) from operations	$	148,846	$	(4,592)	$	144,254	$	78,115	$	74,510	$	152,625	$	(85,096)	$	211,783
Interest expense	$	(3,443)	$	262	$	(3,181)	$	(15,312)	$	(4,530)	$	(19,842)	$	(13,294)	$	(36,317)
Equity in loss of unconsolidated subsidiary	$	-	$	-	$	-	$	-	$	-	$	-	$	(136)	$	(136)
Provision (benefit) for income taxes	$	60,608	$	(36,177)	$	24,431	$	21,463	$	25,969	$	47,432	$	(41,109)	$	30,754
Expenditures for property and equipment	$	29,800	$	761	$	30,561	$	12,543	$	2,329	$	14,872	$	15,839	$	61,272
As of December 31, 2013
Total assets	$	1,177,684	$	119,448	$	1,297,132	$	431,285	$	217,415	$	648,700	$	135,909	$	2,081,741
Goodwill					$	495,214					$	210,365			$	705,579

	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	$	(2,758)	$	(6,962)	$	(9,720)	$	(16,692)	$	(4,304)	$	(20,996)	$	1,585	$	(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	$	(2,998)	$	(6,147)	$	(9,145)	$	(14,614)	$	(2,806)	$	(17,420)	$	1,037	$	(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

Geographic Information

The following table presents the Company's revenue and long-lived assets by geographic region for the years ended December 31, 2013, 2012 and 2011 (dollars in thousands):

	Year Ended December 31,
	2013		2012		2011
Revenue
United States	$	1,399,528	$	1,412,881	$	1,284,407
United Kingdom		361,014		308,464		211,915
Mexico		27,106		60,678		73,069
Other foreign countries		9,578		18,407		13,673
Total revenue	$	1,797,226	$	1,800,430	$	1,583,064
	As of December 31,
Long-lived assets	2013		2012
United States	$	256,377	$	254,809
Mexico		4,846		6,962
Total long-lived assets	$	261,223	$	261,771

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.