| Allowance for credit losses and recorded investment in financing receivables |
The following table presents changes in the allowance for credit losses, as well as the recorded investment in our financing receivables by portfolio segment for the periods presented: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Description | Allowance Balance at Beginning of Period | | Charge-offs | | Recoveries | | Provision | | Translation Adjustment | | Allowance Balance at End of Period | | Financing Receivable at End of Period | | (in thousands) | *Unsecured short-term consumer loans: | | | | | | | | | | | | | | Year ended September 30, 2014 | $ | 2,928 |
| | $ | (46,968 | ) | | $ | 26,865 |
| | $ | 31,817 |
| | $ | 3 |
| | $ | 14,645 |
| | $ | 31,747 |
| Year ended September 30, 2013 | 2,390 |
| | (47,178 | ) | | 21,074 |
| | 26,651 |
| | (9 | ) | | 2,928 |
| | 22,289 |
| Year ended September 30, 2012 | 1,727 |
| | (26,564 | ) | | 12,176 |
| | 15,034 |
| | 17 |
| | 2,390 |
| | 20,108 |
| Secured short-term consumer loans: | | | | | | | | | | | | | | Year ended September 30, 2014 | $ | 1,804 |
| | $ | (64,916 | ) | | $ | 58,453 |
| | $ | 5,708 |
| | $ | — |
| | $ | 1,049 |
| | $ | 8,173 |
| Year ended September 30, 2013 | 942 |
| | (43,768 | ) | | 40,226 |
| | 4,404 |
| | — |
| | 1,804 |
| | 9,789 |
| Year ended September 30, 2012 | 538 |
| | (11,295 | ) | | 9,087 |
| | 2,612 |
| | — |
| | 942 |
| | 5,951 |
| **Unsecured long-term consumer loans: | | | | | | | | | | | | | | Year ended September 30, 2014 | $ | 972 |
| | $ | (1,997 | ) | | $ | 2,437 |
| | $ | 5,952 |
| | $ | (187 | ) | | $ | 7,177 |
| | $ | 90,987 |
| Year ended September 30, 2013 | 623 |
| | (2,651 | ) | | 3,151 |
| | (124 | ) |
| (27 | ) | | 972 |
| | 108,603 |
| Year ended September 30, 2012 | — |
| | (571 | ) | | 896 |
| | 285 |
| | 13 |
| | 623 |
| | 74,045 |
|
| | * | Unsecured short-term consumer loans amounts are included for periods after the November 20, 2012 acquisition of Go Cash, and prior to our discontinuance of Go Cash operations at September 30, 2014. Refer to Note 2 for further detail on discontinued operations. |
| | ** | Comparative information includes activity since the acquisition of Grupo Finmart on January 30, 2012 and the acquisition of Cash Genie on April 14, 2012, as applicable. At September 30, 2014, Go Cash operations were discontinued. Refer to Note 2 for further detail on discontinued operations. A portion of these amounts were included in “Consumer loans, net” in our consolidated balance sheets. Benefit in unsecured long-term consumer loan provision is due to the sale of past due loans and recoveries of loans previously written-off. |
|
| Schedule of sales of unsecured long-term consumer loan portfolios |
following table presents Grupo Finmart sales of unsecured long-term consumer loan portfolios for the periods presented: | | | | | | | | | | | | | | | | | | | | | | | | Description of Portfolio | | Book Value of Principal | | Book Value of Accrued Interest | | Promissory Note Received | | Realized Gain on Sale (1) | | Accelerated Amortization (2) | | | (in millions, except number of loans) | 14,500 in payroll loans sold October 21, 2013 | (3 | ) | $ | 14.0 |
| | $ | 0.7 |
| | $ | 19.3 |
| (6 | ) | $ | 4.6 |
| | $ | 1.2 |
| 7,500 in payroll loans sold March 31, 2014 | (3 | ) | 10.0 |
| | 1.3 |
| | 16.0 |
| (7 | ) | 4.7 |
| | 0.7 |
| 7,100 in payroll loans sold June 30, 2014 | (4 | ) | 10.0 |
| | 2.1 |
| | 16.5 |
| (8 | ) | 4.4 |
| | 0.7 |
| 8,500 in payroll loans sold June 30, 2014 | (4 | ) | 14.0 |
| | 2.3 |
| | 21.8 |
| (9 | ) | 5.5 |
| | 1.0 |
| 16,135 in payroll loans sold September 30, 2014 | (5 | ) | 26.7 |
| | 3.3 |
| | 43.8 |
| (10 | ) | 13.8 |
| | 2.0 |
|
| | (1) | All realized gains on sale are included under “Consumer loan sales and other” in our consolidated statements of operations in the period of sale. |
| | (2) | As a result of these portfolio sales, we accelerated the amortization of the sales commissions related to the loans sold, which are included in “Operations” expense in our consolidated statements of operations in the period of sale. |
| | (3) | Grupo Finmart was retained by the trust as the primary servicer at agreed upon market rates through the duration of the portfolio, an expected 48 months. |
| | (4) | Grupo Finmart was retained by the trust as the primary servicer at agreed upon market rates through the duration of the portfolio, an expected 60 months. |
| | (5) | Grupo Finmart was retained by the trust as the primary servicer at agreed upon market rates through the duration of the portfolio, an expected 72 months. |
| | (6) | This amount was received in full on October 29, 2013. |
| | (7) | This amount was received in full on April 21, 2014. |
| | (8) | This amount was received in full by July 9, 2014. |
| | (9) | This amount was received in full on July 7, 2014. |
| | (10) | This amount was received in full on October 6, 2014. |
The |
| Aging Analysis of past due financing receivables |
following table presents an aging analysis of past due financing receivables by portfolio segment: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Days Past Due | | Total Past Due | | Current Receivable | | Fair Value Adjustment | | Total Financing Receivable | | Allowance Balance | | Recorded Investment > 90 Days Accruing | | 1-30 | | 31-60 | | 61-90 | | >90 | | | | | | | | (in thousands) | Unsecured short-term consumer loans:* | | | | | | | | | | | | | | | September 30, 2013 | $ | 113 |
| | $ | 285 |
| | $ | 257 |
| | $ | — |
| | $ | 655 |
| | $ | 214 |
| | $ | — |
| | $ | 869 |
| | $ | 464 |
| | $ | — |
| Secured short-term consumer loans: | | | | | | | | | | | | | | | September 30, 2014 | $ | 2,196 |
| | $ | 823 |
| | $ | 448 |
| | $ | 412 |
| | $ | 3,879 |
| | $ | 4,294 |
| | $ | — |
| | $ | 8,173 |
| | $ | 1,049 |
| | $ | — |
| September 30, 2013 | 2,096 |
| | 1,313 |
| | 905 |
| | 910 |
| | 5,224 |
| | 4,565 |
| | — |
| | 9,789 |
| | 1,804 |
| | — |
| September 30, 2012 | 1,246 |
| | 708 |
| | 466 |
| | 391 |
| | 2,811 |
| | 3,140 |
| | — |
| | 5,951 |
| | 942 |
| | — |
| Unsecured long-term consumer loans:** | | | | | | | | | | | | | | | September 30, 2014 | | | | | | | | | | | | | | | | | | | | In Payroll | $ | 8,445 |
| | $ | 2,192 |
| | $ | 1,048 |
| | $ | 19,921 |
| | $ | 31,606 |
| | $ | 52,471 |
| | $ | 1,473 |
| | $ | 85,550 |
| | $ | 2,345 |
| | $ | 19,921 |
| Out of Payroll | 24 |
| | 271 |
| | 170 |
| | 4,541 |
| | 5,006 |
| | 385 |
| | 46 |
| | 5,437 |
| | 4,832 |
| | — |
| | $ | 8,469 |
| | $ | 2,463 |
| | $ | 1,218 |
| | $ | 24,462 |
| | $ | 36,612 |
| | $ | 52,856 |
| | $ | 1,519 |
| | $ | 90,987 |
| | $ | 7,177 |
| | $ | 19,921 |
| September 30, 2013 | | | | | | | | | | | | | | | | | | | | In Payroll | $ | 8,726 |
| | $ | 5,245 |
| | $ | 1,392 |
| | $ | 29,492 |
| | $ | 44,855 |
| | $ | 63,209 |
| | $ | (196 | ) | | $ | 107,868 |
| | $ | 758 |
| | $ | 29,492 |
| Out of Payroll | 183 |
| | 109 |
| | 192 |
| | — |
| | 484 |
| | 258 |
| | (7 | ) | | 735 |
| | 214 |
| | — |
| | $ | 8,909 |
| | $ | 5,354 |
| | $ | 1,584 |
| | $ | 29,492 |
| | $ | 45,339 |
| | $ | 63,467 |
| | $ | (203 | ) | | $ | 108,603 |
| | $ | 972 |
| | $ | 29,492 |
| September 30, 2012 | | | | | | | | | | | | | | | | | | | | In Payroll | $ | 2,465 |
| | $ | 28,783 |
| | $ | 949 |
| | $ | 7,507 |
| | $ | 39,704 |
| | $ | 37,120 |
| | $ | (2,779 | ) | | $ | 74,045 |
| | $ | 623 |
| | $ | 7,506 |
| Out of Payroll | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | $ | 2,465 |
| | $ | 28,783 |
| | $ | 949 |
| | $ | 7,507 |
| | $ | 39,704 |
| | $ | 37,120 |
| | $ | (2,779 | ) | | $ | 74,045 |
| | $ | 623 |
| | $ | 7,506 |
|
* Unsecured short-term consumer loans amounts are included for periods after the December 20, 2012 acquisition of Go Cash, and prior to our discontinuance of Go Cash operations as of September 30, 2014. As a result of our discontinuance of Go Cash, we wrote our unsecured short-term consumer loans down to net realized value, or a nominal amount, as of September 30, 2014. Refer to Note 2 for further detail on discontinued operations.
** Comparative information includes activity since the acquisition of Grupo Finmart on January 30, 2012 and the acquisition of Cash Genie on April 14, 2012, as applicable. At September 30, 2014, Go Cash operations were discontinued. Refer to Note 2 for further detail on discontinued operations. |