Operating Segment Information

Segment information is prepared on the same basis that our management reviews financial information for operational decision-making purposes. Previously, we reported segment information based primarily on product offerings. Beginning with the second quarter of fiscal 2012, we redefined our reportable operating segments based on geography as our company is increasingly being organized and managed along geographic lines, with product offerings and channels based on local custom and regulation. As a result, we concluded that segment reporting based on geography more closely aligns with our management organization and strategic direction.

For periods ending after January 1, 2012, we will report segments as follows:


•	U.S. & Canada – All business activities in the United States and Canada


•	Latin America – All business activities in Mexico and other parts of Latin America


•	Other International – All business activities in the rest of the world (currently consisting of consumer loans online in the U.K. and our equity interests in the net income of Albemarle & Bond and Cash Converters International)

Concurrent with the change in reportable operating segments, we revised our prior period financial information to reflect comparable financial information for the new segment structure.

There are no inter-segment revenues, and the amounts below were determined in accordance with the same accounting principles used in our consolidated financial statements. The following tables present operating segment information for the three and nine-month periods ending June 30, 2012 and 2011, including the reclassifications discussed in Note A “Significant Accounting Policies.”



	Three Months Ended June 30, 2012
	U.S. & Canada			Latin America			Other International			Consolidated
	(In thousands)
Revenues:
Merchandise sales	$	65,799		$	10,159		$	—		$	75,958
Jewelry scrapping sales	37,456			4,518			—			41,974
Pawn service charges	49,979			6,184			—			56,163
Consumer loan fees	39,243			10,381			3,880			53,504
Other revenues	649			558			158			1,365
Total revenues	193,126			31,800			4,038			228,964
Merchandise cost of goods sold	38,519			5,735			—			44,254
Jewelry scrapping cost of goods sold	24,415			3,784			—			28,199
Consumer loan bad debt	9,368			632			1,251			11,251
Net revenues	120,824			21,649			2,787			145,260
Operating expenses:
Store operations	65,975			8,792			942			75,709
Administrative	5,970			4,335			1,870			12,175
Depreciation	3,622			1,054			73			4,749
Amortization	142			999			21			1,162
(Gain) loss on sale or disposal of assets	93			(4		)	223			312
Interest, net	(1		)	22			(1		)	20
Equity in net income of unconsolidated affiliates	—			—			(4,197		)	(4,197		)
Other	614			(13		)	(441		)	160
Segment contribution	$	44,409		$	6,464		$	4,297		$	55,170
Corporate expenses:
Administrative										10,522
Depreciation										1,466
Interest, net										877
Income before taxes										42,305
Income tax expense										12,594
Net income										29,711
Net income attributable to redeemable noncontrolling interest										1,188
Net income attributable to EZCORP, Inc.										$	28,523



	Three Months Ended June 30, 2011
	U.S. & Canada		Latin America		Other International			Consolidated
	(In thousands)
Revenues:
Merchandise sales	$	58,173	$	6,401	$	—		$	64,574
Jewelry scrapping sales	46,514		4,257		—			50,771
Pawn service charges	43,846		4,519		—			48,365
Consumer loan fees	38,870		—		—			38,870
Other revenues	566		6		—			572
Total revenues	187,969		15,183		—			203,152
Merchandise cost of goods sold	32,924		3,767		—			36,691
Jewelry scrapping cost of goods sold	28,951		3,486		—			32,437
Consumer loan bad debt	11,027		—		—			11,027
Net revenues	115,067		7,930		—			122,997
Operating expenses:
Store operations	61,347		5,406		—			66,753
Administrative	4,293		1,014		506			5,813
Depreciation	2,828		639		—			3,467
Amortization	117		104		—			221
Loss on sale or disposal of assets	157		12		—			169
Interest, net	20		2		—			22
Equity in net income of unconsolidated affiliates	—		—		(4,099		)	(4,099		)
Other	2		2		(107		)	(103		)
Segment contribution	$	46,303	$	751	$	3,700		$	50,754
Corporate expenses:
Administrative								8,566
Depreciation								991
Interest, net								543
Income before taxes								40,654
Income tax expense								14,127
Net income								26,527
Net income attributable to redeemable noncontrolling interest								—
Net income attributable to EZCORP, Inc.								$	26,527



	Nine Months Ended June 30, 2012
	U.S. & Canada			Latin America			Other International			Consolidated
	(In thousands)
Revenues:
Merchandise sales	$	227,849		$	30,000		$	—		$	257,849
Jewelry scrapping sales	139,736			11,816			—			151,552
Pawn service charges	154,854			17,545			—			172,399
Consumer loan fees	127,061			17,764			4,086			148,911
Other revenues	2,444			802			158			3,404
Total revenues	651,944			77,927			4,244			734,115
Merchandise cost of goods sold	132,469			16,061			—			148,530
Jewelry scrapping cost of goods sold	87,102			8,831			—			95,933
Consumer loan bad debt	26,136			1,140			1,466			28,742
Net revenues	406,237			51,895			2,778			460,910
Operating expenses:
Store operations	203,190			23,001			1,288			227,479
Administrative	17,841			9,964			2,292			30,097
Depreciation	10,121			2,576			109			12,806
Amortization	414			2,651			21			3,086
(Gain) loss on sale or disposal of assets	(82		)	(3		)	223			138
Interest, net	3			1,755			(1		)	1,757
Equity in net income of unconsolidated affiliates	—			—			(12,935		)	(12,935		)
Other	345			3			(505		)	(157		)
Segment contribution	$	174,405		$	11,948		$	12,286		$	198,639
Corporate expenses:
Administrative										33,664
Depreciation										3,999
Interest, net										1,937
Income before taxes										159,039
Income tax expense										52,603
Net income										106,436
Net income attributable to redeemable noncontrolling interest										1,300
Net income attributable to EZCORP, Inc.										$	105,136



	Nine Months Ended June 30, 2011
	U.S. & Canada			Latin America		Other International			Consolidated
	(In thousands)
Revenues:
Merchandise sales	$	196,898		$	17,329	$	—		$	214,227
Jewelry scrapping sales	138,068			11,363		—			149,431
Pawn service charges	133,355			11,589		—			144,944
Consumer loan fees	125,652			—		—			125,652
Other revenues	944			34		—			978
Total revenues	594,917			40,315		—			635,232
Merchandise cost of goods sold	112,605			10,036		—			122,641
Jewelry scrapping cost of goods sold	87,416			9,201		—			96,617
Consumer loan bad debt	27,795			—		—			27,795
Net revenues	367,101			21,078		—			388,179
Operating expenses:
Store operations	182,769			14,533		—			197,302
Administrative	14,103			3,030		558			17,691
Depreciation	8,194			1,723		—			9,917
Amortization	353			301		—			654
(Gain) loss on sale or disposal of assets	(15		)	13		—			(2		)
Interest, net	20			4		—			24
Equity in net income of unconsolidated affiliates	—			—		(12,157		)	(12,157		)
Other	5			3		(168		)	(160		)
Segment contribution	$	161,672		$	1,471	$	11,767		$	174,910
Corporate expenses:
Administrative									38,559
Depreciation									2,753
Interest, net									1,127
Income before taxes									132,471
Income tax expense									46,677
Net income									85,794
Net income attributable to redeemable noncontrolling interest									—
Net income attributable to EZCORP, Inc.									$	85,794

The following table presents separately identified segment assets:



	U.S. & Canada		Latin America		Other International		Consolidated
	(In thousands)
Assets at June 30, 2012:
Cash and cash equivalents	$	18,789	$	17,708	$	1,638	$	38,135
Pawn loans, net	134,064		13,439		—		147,503
Consumer loans, net	17,247		59,989		1,838		79,074
Service charges and fees receivable, net	30,555		20,721		545		51,821
Inventory, net	82,631		11,790		—		94,421
Property and equipment, net	57,532		20,338		1,400		79,270
Goodwill, net	221,549		61,322		38,552		321,423
Intangibles, net	17,597		56,541		2,830		76,968
Total separately identified recorded segment assets	$	579,964	$	261,848	$	46,803	$	888,615
Consumer loans outstanding from unaffiliated lenders	$	23,466	$	—	$	—	$	23,466
Assets at June 30, 2011:
Cash and cash equivalents	$	6,198	$	2,873	$	—	$	9,071
Pawn loans, net	124,810		9,823		—		134,633
Consumer loans, net	14,437		—		—		14,437
Service charges and fees receivable, net	29,732		1,524		—		31,256
Inventory, net	70,631		8,400		—		79,031
Property and equipment, net	49,366		12,939		—		62,305
Goodwill, net	159,572		7,445		—		167,017
Intangibles, net	16,953		942		—		17,895
Total separately identified recorded segment assets	$	471,699	$	43,946	$	—	$	515,645
Consumer loans outstanding from unaffiliated lenders	$	26,299	$	—	$	—	$	26,299
Assets at September 30, 2011:
Cash and cash equivalents	$	10,040	$	1,496	$	—	$	11,536
Pawn loans, net	134,457		10,861		—		145,318
Consumer loans, net	14,611		—		—		14,611
Service charges and fees receivable, net	31,567		1,663		—		33,230
Inventory, net	81,859		8,514		—		90,373
Property and equipment, net	51,469		12,769		—		64,238
Goodwill, net	163,897		9,309		—		173,206
Intangibles, net	16,775		867		—		17,642
Total separately identified recorded segment assets	$	504,675	$	45,479	$	—	$	550,154
Consumer loans outstanding from unaffiliated lenders	$	27,040	$	—	$	—	$	27,040

The following table reconciles separately identified recorded segment assets, as shown above, to our consolidated total assets:



	June 30,				September 30,
	2012		2011		2011
	(In thousands)
Total separately identified recorded segment assets	$	888,615	$	515,645	$	550,154
Corporate assets	249,458		197,976		206,296
Total assets	$	1,138,073	$	713,621	$	756,450

The following tables provide geographic information required by ASC 280-10-50-41:



	Three Months Ended June 30,				Nine Months Ended June 30,
	2012		2011		2012		2011
	(In thousands)
Revenues:
U.S.	$	188,573	$	184,903	$	639,778	$	587,845
Mexico	31,800		15,183		77,927		40,315
Canada	4,553		3,066		12,166		7,072
U.K	4,038		—		4,244		—
Total	228,964		203,152		734,115		635,232



	June 30,				September 30,
	2012		2011		2011
	(In thousands)
Long-lived assets:
U.S.	$	309,168	$	233,637	$	240,661
Mexico	138,202		21,326		7,888
Canada	10,133		7,295		22,945
U.K	42,782		—		—
Total	$	500,285	$	262,258	$	271,494