XML 28 R17.htm IDEA: XBRL DOCUMENT v3.22.2.2
Segment Information
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company organizes its operations into three reportable segments as follows:

•U.S. pawn
•Latin America pawn
•Retail POS payment solutions (AFF)

Corporate expenses and income, which include administrative expenses, corporate depreciation and amortization, interest expense, interest income, loss (gain) on foreign exchange, merger and acquisition expenses, gain on revaluation of contingent acquisition consideration, and other expenses (income), net, are presented on a consolidated basis and are not allocated between the U.S. pawn segment, Latin America pawn segment or retail POS payment solutions segment. Intersegment transactions relate to U.S. pawn stores offering AFF’s LTO payment solution as a payment option in its stores and are eliminated to arrive at consolidated totals.
The following tables present reportable segment information for the three and nine month periods ended September 30, 2022 and 2021 as well as segment earning assets (in thousands):

Three Months Ended September 30, 2022
 U.S.
Pawn		Latin America
Pawn		Retail POS
Payment
Solutions		Corporate/
Eliminations		Consolidated
Revenue:   
Retail merchandise sales$195,854 $107,591 $— $(2,546)
(1)
$300,899 
Pawn loan fees96,222 49,505 — — 145,727 
Leased merchandise income— — 158,089 — 158,089 
Interest and fees on finance receivables— — 48,846 — 48,846 
Wholesale scrap jewelry sales12,956 5,626 — — 18,582 
Total revenue305,032 162,722 206,935 (2,546)672,143 
Cost of revenue:    
Cost of retail merchandise sold114,899 68,642 — (1,342)
(1)
182,199 
Depreciation of leased merchandise— — 86,703 (184)
(1)
86,519 
Provision for lease losses— — 32,350 (434)
(1)
31,916 
Provision for loan losses— — 31,956 — 31,956 
Cost of wholesale scrap jewelry sold11,338 4,923 — — 16,261 
Total cost of revenue126,237 73,565 151,009 (1,960)348,851 
Net revenue178,795 89,157 55,926 (586)
(1)
323,292 
Expenses and other income:    
Operating expenses102,508 47,979 35,060 — 185,547 
Administrative expenses— — — 36,951 36,951 
Depreciation and amortization5,806 4,566 775 14,824 25,971 
Interest expense— — — 18,282 18,282 
Interest income— — — (206)(206)
Loss on foreign exchange
— — — 255 255 
Merger and acquisition expenses— — — 733 733 
Gain on revaluation of contingent acquisition consideration
— — — (19,800)(19,800)
Other expenses (income), net— — — 164 164 
Total expenses and other income108,314 52,545 35,835 51,203 247,897 
Income (loss) before income taxes$70,481 $36,612 $20,091 $(51,789)$75,395 

(1)Represents the elimination of intersegment transactions related to U.S. pawn stores offering AFF’s LTO payment solution as a payment option in its stores.
Nine Months Ended September 30, 2022
U.S.
Pawn		Latin America
Pawn		Retail POS
Payment
Solutions		Corporate/
Eliminations		Consolidated
Revenue:   
Retail merchandise sales$596,165 $308,356 $— $(2,546)
(1)
$901,975 
Pawn loan fees274,304 137,309 — — 411,613 
Leased merchandise income— — 455,736 — 455,736 
Interest and fees on finance receivables— — 135,039 — 135,039 
Wholesale scrap jewelry sales45,153 30,082 — — 75,235 
Total revenue915,622 475,747 590,775 (2,546)1,979,598 
Cost of revenue:    
Cost of retail merchandise sold349,007 196,057 — (1,342)
(1)
543,722 
Depreciation of leased merchandise— — 263,014 (184)
(1)
262,830 
Provision for lease losses— — 110,205 (434)
(1)
109,771 
Provision for loan losses— — 83,453 — 83,453 
Cost of wholesale scrap jewelry sold39,150 25,221 — — 64,371 
Total cost of revenue388,157 221,278 456,672 (1,960)1,064,147 
Net revenue527,465 254,469 134,103 (586)
(1)
915,451 
Expenses and other income:    
Operating expenses302,572 141,574 95,252 — 539,398 
Administrative expenses— — — 110,882 110,882 
Depreciation and amortization17,261 13,520 2,156 44,558 77,495 
Interest expense— — — 50,749 50,749 
Interest income— — — (1,104)(1,104)
Gain on foreign exchange
— — — (198)(198)
Merger and acquisition expenses— — — 1,712 1,712 
Gain on revaluation of contingent acquisition consideration
— — — (82,789)(82,789)
Other expenses (income), net— — — (2,721)(2,721)
Total expenses and other income319,833 155,094 97,408 121,089 693,424 
Income (loss) before income taxes$207,632 $99,375 $36,695 $(121,675)$222,027 

As of September 30, 2022
U.S.
Pawn		Latin America
Pawn		Retail POS
Payment
Solutions		Corporate/
Eliminations		Consolidated
Earning assets:
Pawn loans$279,645 $124,582 $— $— $404,227 
Finance receivables, net— — 111,945 — 111,945 
Inventories204,359 91,069 — — 295,428 
Leased merchandise, net— — 132,683 (586)
(1)
132,097 

(1)Represents the elimination of intersegment transactions related to U.S. pawn stores offering AFF’s LTO payment solution as a payment option in its stores.
Three Months Ended September 30, 2021
 U.S.
Pawn		Latin America
Pawn		Corporate/
Eliminations		Consolidated
Revenue:   
Retail merchandise sales$167,257 $101,469 $— $268,726 
Pawn loan fees76,674 44,691 — 121,365 
Wholesale scrap jewelry sales4,168 5,415 — 9,583 
Total revenue248,099 151,575 — 399,674 
Cost of revenue:    
Cost of retail merchandise sold93,326 64,731 — 158,057 
Cost of wholesale scrap jewelry sold3,778 4,750 — 8,528 
Total cost of revenue97,104 69,481 — 166,585 
Net revenue150,995 82,094 — 233,089 
Expenses and other income:    
Operating expenses93,247 45,372 — 138,619 
Administrative expenses— — 30,208 30,208 
Depreciation and amortization5,662 4,591 964 11,217 
Interest expense— — 7,961 7,961 
Interest income— — (143)(143)
Loss on foreign exchange
— — 558 558 
Merger and acquisition expenses— — 12 12 
Other expenses (income), net— — 361 361 
Total expenses and other income98,909 49,963 39,921 188,793 
Income (loss) before income taxes$52,086 $32,131 $(39,921)$44,296 
Nine Months Ended September 30, 2021
U.S.
Pawn		Latin America
Pawn		Corporate/
Eliminations		Consolidated
Revenue:   
Retail merchandise sales$530,468 $275,867 $— $806,335 
Pawn loan fees220,013 126,783 — 346,796 
Wholesale scrap jewelry sales20,217 23,843 — 44,060 
Total revenue770,698 426,493 — 1,197,191 
Cost of revenue:    
Cost of retail merchandise sold295,455 173,179 — 468,634 
Cost of wholesale scrap jewelry sold16,678 20,979 — 37,657 
Total cost of revenue312,133 194,158 — 506,291 
Net revenue458,565 232,335 — 690,900 
Expenses and other income:    
Operating expenses282,068 133,003 — 415,071 
Administrative expenses— — 88,605 88,605 
Depreciation and amortization16,391 13,388 2,952 32,731 
Interest expense— — 22,389 22,389 
Interest income— — (420)(420)
Loss on foreign exchange
— — 248 248 
Merger and acquisition expenses— — 1,264 1,264 
Other expenses (income), net— — 1,640 1,640 
Total expenses and other income298,459 146,391 116,678 561,528 
Income (loss) before income taxes$160,106 $85,944 $(116,678)$129,372 

As of September 30, 2021
U.S.
Pawn		Latin America
Pawn		Consolidated
Earning assets:
Pawn loans$242,825$106,168$348,993
Inventories175,04779,213254,260