Fair Value of Financial Instruments

The fair value of financial instruments is determined by reference to various market data and other valuation techniques, as appropriate. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The three fair value levels are (from highest to lowest):

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs that are not corroborated by market data.

Recurring Fair Value Measurements

As of September 30, 2017, the Company did not have any financial assets or liabilities that are measured at fair value on a recurring basis. The Company’s financial assets that were measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2016 were as follows:



	September 30,		Fair Value Measurements Using
Financial assets:	2016		Level 1		Level 2		Level 3
Cash America nonqualified savings plan-related assets	$	12,229	$	12,229	$	—	$	—
Investment in common stock of Enova	54,786		54,786		—		—
	$	67,015	$	67,015	$	—	$	—



	December 31,		Fair Value Measurements Using
	2016		Level 1		Level 2		Level 3
Financial assets:
Cash America nonqualified savings plan-related assets	$	12,663	$	12,663	$	—	$	—
	$	12,663	$	12,663	$	—	$	—

Prior to the Merger, Cash America had a nonqualified savings plan that was available to certain members of its management. Upon completion of the Merger, the nonqualified savings plan was terminated and during the three months ended March 31, 2017, the Company dissolved the plan and distributed the remaining assets to the participants. As of September 30, 2016 and December 31, 2016, the assets of the nonqualified savings plan included marketable equity securities, which were classified as Level 1 and the fair values were based on quoted market prices. The nonqualified savings plan assets were included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheet with an offsetting liability of equal amount, which is included in accounts payable and accrued expenses in the accompanying condensed consolidated balance sheet.

The Company’s investment in common stock of Enova represented the Company’s available-for-sale shares of Enova International, Inc. (“Enova”) common stock. As of September 30, 2016, the equity securities representing Enova common stock were classified as Level 1 and based on the market determined stock price of Enova. During 2016, the Company sold all of the Enova shares in open market transactions.

Fair Value Measurements on a Nonrecurring Basis

The Company measures non-financial assets and liabilities such as property and equipment and intangible assets at fair value on a nonrecurring basis or when events or circumstances indicate that the carrying amount of the assets may be impaired.

Financial Assets and Liabilities Not Measured at Fair Value

The Company’s financial assets and liabilities as of September 30, 2017, 2016 and December 31, 2016 that are not measured at fair value in the condensed consolidated balance sheets are as follows:



	Carrying Value		Estimated Fair Value
	September 30,		September 30,		Fair Value Measurements Using
	2017		2017		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	93,411	$	93,411	$	93,411	$	—	$	—
Pawn loans	371,367		371,367		—		—		371,367
Consumer loans, net	24,515		24,515		—		—		24,515
Fees and service charges receivable	45,134		45,134		—		—		45,134
	$	534,427	$	534,427	$	93,411	$	—	$	441,016

Financial liabilities:
Revolving unsecured credit facilities	$	140,000	$	140,000	$	—	$	140,000	$	—
Senior unsecured notes, outstanding principal	300,000		314,000		—		314,000		—
	$	440,000	$	454,000	$	—	$	454,000	$	—



	Carrying Value		Estimated Fair Value
	September 30,		September 30,		Fair Value Measurements Using
	2016		2016		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	83,356	$	83,356	$	83,356	$	—	$	—
Pawn loans	373,169		373,169		—		—		373,169
Consumer loans, net	27,792		27,792		—		—		27,792
Fees and service charges receivable	45,708		45,708		—		—		45,708
	$	530,025	$	530,025	$	83,356	$	—	$	446,669

Financial liabilities:
Revolving unsecured credit facilities	$	360,000	$	360,000	$	—	$	360,000	$	—
Senior unsecured notes, outstanding principal	200,000		210,000		—		210,000		—
	$	560,000	$	570,000	$	—	$	570,000	$	—



	Carrying Value		Estimated Fair Value
	December 31,		December 31,		Fair Value Measurements Using
	2016		2016		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	89,955	$	89,955	$	89,955	$	—	$	—
Pawn loans	350,506		350,506		—		—		350,506
Consumer loans, net	29,204		29,204		—		—		29,204
Fees and service charges receivable	41,013		41,013		—		—		41,013
	$	510,678	$	510,678	$	89,955	$	—	$	420,723

Financial liabilities:
Revolving unsecured credit facilities	$	260,000	$	260,000	$	—	$	260,000	$	—
Senior unsecured notes, outstanding principal	200,000		208,000		—		208,000		—
	$	460,000	$	468,000	$	—	$	468,000	$	—

As cash and cash equivalents have maturities of less than three months, the carrying value of cash and cash equivalents approximates fair value. Due to their short-term maturities, the carrying value of pawn loans and fees and service charges receivable approximate fair value. Short-term loans and installment loans, collectively, represent consumer loans, net on the accompanying condensed consolidated balance sheets and are carried net of the allowance for estimated loan losses, which is calculated by applying historical loss rates combined with recent default trends to the gross consumer loan balance. The unobservable inputs used to calculate the fair value of these loans include historical loss rates, recent default trends and estimated remaining loan terms; therefore, the carrying value approximates the fair value.

The carrying value of the Company’s prior credit facilities approximates fair value as of September 30, 2016. The carrying value of the Company’s current credit facilities (the 2016 Credit Facility and the Mexico Credit Facility) approximates fair value as of September 30, 2017 and December 31, 2016. The fair value of the senior unsecured notes have been estimated based on a discounted cash flow analysis using a discount rate representing the Company’s estimate of the rate that would be used by market participants. Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values.