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Operating Segment Information | 3 Months Ended
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Dec. 31, 2012
Segment Reporting [Abstract] |
OPERATING SEGMENT INFORMATION | NOTE 11: 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. In connection with the new segment structure, we have changed the accountability for, and reporting of, certain items including administrative expenses, depreciation and amortization, interest and our equity in the net income of unconsolidated affiliates. When practical, these items are allocated to segments. Interest is also allocated to operating segments when debt is incurred at the local country level and is non-recourse to EZCORP. These items are now included in the segment’s measure of profit or loss (“segment contribution”). Expenses that cannot be allocated are included as corporate expenses. 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. For periods ending after January 1, 2012, we 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)
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 months ending December 31, 2012 and 2011:
| Three Months Ended December 31, 2012
| U.S. & Canada |  | Latin America |  | Other International |  | Consolidated
| (in thousands)
Revenues: |  |  |  |  |  |  |
Merchandise sales | $ | 80,465 |  |  | $ | 15,117 |  |  | $ | — |  |  | $ | 95,582 |
Jewelry scrapping sales | 42,142 |  |  | 3,783 |  |  | — |  |  | 45,925 |
Pawn service charges | 58,210 |  |  | 7,814 |  |  | — |  |  | 66,024 |
Consumer loan fees | 45,959 |  |  | 11,877 |  |  | 6,929 |  |  | 64,765 |
Other revenues | 2,794 |  |  | 1,654 |  |  | 382 |  |  | 4,830 |
Total revenues | 229,570 |  |  | 40,245 |  |  | 7,311 |  |  | 277,126 |
Merchandise cost of goods sold | 46,732 |  |  | 8,769 |  |  | — |  |  | 55,501 |
Jewelry scrapping cost of goods sold | 29,157 |  |  | 3,042 |  |  | — |  |  | 32,199 |
Consumer loan bad debt | 11,481 |  |  | (1,048 | ) |  | 3,641 |  |  | 14,074 |
Net revenues | 142,200 |  |  | 29,482 |  |  | 3,670 |  |  | 175,352 |
Segment expenses: |  |  |  |  |  |  |
Operations | 87,443 |  |  | 15,741 |  |  | 4,078 |  |  | 107,262 |
Depreciation and amortization | 4,102 |  |  | 1,675 |  |  | 76 |  |  | 5,853 |
Loss on sale or disposal of assets | 29 |  |  | — |  |  | — |  |  | 29 |
Interest expense | 17 |  |  | 2,613 |  |  | — |  |  | 2,630 |
Equity in net income of unconsolidated affiliates | — |  |  | — |  |  | (5,038 | ) |  | (5,038 | )
Other (income) expense | (4 | ) |  | 20 |  |  | (69 | ) |  | (53 | )
Segment contribution | $ | 50,613 |  |  | $ | 9,433 |  |  | $ | 4,623 |  |  | $ | 64,669 |
Corporate expenses: |  |  |  |  |  |  |
Administrative |  |  |  |  |  |  | 13,671 |
Depreciation and amortization |  |  |  |  |  |  | 1,799 |
Interest, net |  |  |  |  |  |  | 1,007 |
Other income |  |  |  |  |  |  | (448 | )
Income before taxes |  |  | 48,640 |
Income tax expense |  |  |  |  |  |  | 16,485 |
Net income |  |  |  |  |  |  | 32,155 |
Net income attributable to noncontrolling interest |  |  |  |  |  |  | 1,438 |
Net income attributable to EZCORP |  |  |  |  |  |  | $ | 30,717 |
| Three Months Ended December 31, 2011
| U.S. & Canada |  | Latin America |  | Other International |  | Consolidated
| (in thousands)
Revenues: |  |  |  |  |  |  |
Merchandise sales | $ | 76,552 |  |  | $ | 10,342 |  |  | $ | — |  |  | $ | 86,894 |
Jewelry scrapping sales | 52,866 |  |  | 3,537 |  |  | — |  |  | 56,403 |
Pawn service charges | 54,370 |  |  | 5,422 |  |  | — |  |  | 59,792 |
Consumer loan fees | 45,012 |  |  | — |  |  | 76 |  |  | 45,088 |
Other revenues | 576 |  |  | 120 |  |  | — |  |  | 696 |
Total revenues | 229,376 |  |  | 19,421 |  |  | 76 |  |  | 248,873 |
Merchandise cost of goods sold | 43,451 |  |  | 4,945 |  |  | — |  |  | 48,396 |
Jewelry scrapping cost of goods sold | 33,150 |  |  | 2,274 |  |  | — |  |  | 35,424 |
Consumer loan bad debt | 10,890 |  |  | — |  |  | 135 |  |  | 11,025 |
Net revenues | 141,885 |  |  | 12,202 |  |  | (59 | ) |  | 154,028 |
Segment expenses: |  |  |  |  |  |  |
Operations | 74,994 |  |  | 6,966 |  |  | 598 |  |  | 82,558 |
Depreciation and amortization | 3,223 |  |  | 770 |  |  | 22 |  |  | 4,015 |
(Gain) on sale or disposal of assets | (200 | ) |  | (1 | ) |  | — |  |  | (201 | )
Interest, net | 4 |  |  | (36 | ) |  | — |  |  | (32 | )
Equity in net income of unconsolidated affiliates | — |  |  | — |  |  | (4,161 | ) |  | (4,161 | )
Other (income) expense | (1,060 | ) |  | 3 |  |  | (64 | ) |  | (1,121 | )
Segment contribution | $ | 64,924 |  |  | $ | 4,500 |  |  | $ | 3,546 |  |  | $ | 72,970 |
Corporate expenses: |  |  |  |  |  |  |
Administrative |  |  |  |  |  |  | 11,654 |
Depreciation and amortization |  |  |  |  |  |  | 1,240 |
Interest expense |  |  |  |  |  |  | 583 |
Other expense |  |  |  |  |  |  | 2 |
Income before taxes |  |  | 59,491 |
Income tax expense |  |  |  |  |  |  | 20,139 |
Net income |  |  |  |  |  |  | 39,352 |
Net income attributable to noncontrolling interest |  |  |  |  |  |  | — |
Net income attributable to EZCORP |  |  |  |  |  |  | $ | 39,352 |
The following table presents separately identified segment assets:
| U.S. & Canada |  | Latin America |  | Other International |  | Consolidated
| (in thousands)
Assets at December 31, 2012 |  |  |  |  |  |  |
Cash and cash equivalents | $ | 15,407 |  |  | $ | 14,508 |  |  | $ | 2,115 |  |  | $ | 32,030 |
Restricted cash | — |  |  | 1,133 |  |  | — |  |  | 1,133 |
Pawn loans | 147,145 |  |  | 14,950 |  |  | — |  |  | 162,095 |
Consumer loans, net | 21,546 |  |  | 80,858 |  |  | 4,810 |  |  | 107,214 |
Service charges and fees receivable, net | 36,973 |  |  | 26,837 |  |  | 1,341 |  |  | 65,151 |
Inventory, net | 103,042 |  |  | 17,284 |  |  | — |  |  | 120,326 |
Property and equipment, net | 67,581 |  |  | 25,768 |  |  | 1,572 |  |  | 94,921 |
Restricted cash, non-current | — |  |  | 1,994 |  |  | — |  |  | 1,994 |
Goodwill | 276,570 |  |  | 111,485 |  |  | 39,956 |  |  | 428,011 |
Intangibles, net | 35,522 |  |  | 20,820 |  |  | 2,921 |  |  | 59,263 |
Total separately identified recorded segment assets | $ | 703,786 |  |  | $ | 315,637 |  |  | $ | 52,715 |  |  | $ | 1,072,138 |
Consumer loans outstanding from unaffiliated lenders | $ | 29,079 |  |  | $ | — |  |  | $ | — |  |  | $ | 29,079 |
Assets at December 31, 2011 |  |  |  |  |  |  |
Cash and cash equivalents | $ | 13,004 |  |  | $ | 4,696 |  |  | $ | 183 |  |  | $ | 17,883 |
Pawn loans | 140,386 |  |  | 9,674 |  |  | — |  |  | 150,060 |
Consumer loans, net | 16,102 |  |  | — |  |  | 86 |  |  | 16,188 |
Service charges and fees receivable, net | 34,644 |  |  | 1,532 |  |  | 28 |  |  | 36,204 |
Inventory, net | 91,264 |  |  | 9,121 |  |  | — |  |  | 100,385 |
Property and equipment, net | 53,190 |  |  | 14,161 |  |  | 238 |  |  | 67,589 |
Goodwill | 203,325 |  |  | 8,938 |  |  | — |  |  | 212,263 |
Intangibles, net | 17,770 |  |  | 800 |  |  | — |  |  | 18,570 |
Total separately identified recorded segment assets | $ | 569,685 |  |  | $ | 48,922 |  |  | $ | 535 |  |  | $ | 619,142 |
Consumer loans outstanding from unaffiliated lenders | $ | 29,722 |  |  | $ | — |  |  | $ | — |  |  | $ | 29,722 |
Assets at September 30, 2012 |  |  |  |  |  |  |
Cash and cash equivalents | $ | 14,820 |  |  | $ | 16,365 |  |  | $ | 1,789 |  |  | $ | 32,974 |
Restricted cash | — |  |  | 1,145 |  |  | — |  |  | 1,145 |
Pawn loans | 140,885 |  |  | 16,763 |  |  | — |  |  | 157,648 |
Consumer loans, net | 18,960 |  |  | 73,422 |  |  | 3,767 |  |  | 96,149 |
Service charges and fees receivable, net | 34,066 |  |  | 24,637 |  |  | 1,114 |  |  | 59,817 |
Inventory, net | 94,449 |  |  | 14,765 |  |  | — |  |  | 109,214 |
Property and equipment, net | 60,708 |  |  | 23,220 |  |  | 1,503 |  |  | 85,431 |
Restricted cash, non-current | — |  |  | 4,337 |  |  | — |  |  | 4,337 |
Goodwill | 224,306 |  |  | 110,401 |  |  | 39,956 |  |  | 374,663 |
Intangibles, net | 18,824 |  |  | 21,867 |  |  | 2,946 |  |  | 43,637 |
Total separately identified recorded segment assets | $ | 607,018 |  |  | $ | 306,922 |  |  | $ | 51,075 |  |  | $ | 965,015 |
Consumer loans outstanding from unaffiliated lenders | $ | 24,773 |  |  | $ | — |  |  | $ | — |  |  | $ | 24,773 |
The following table reconciles separately identified recorded segment assets, as shown above, to our consolidated total assets:
| December 31, |  | September 30,
| 2012 |  | 2011 |  | 2012
| (in thousands)
Total separately identified recorded segment assets | $ | 1,072,138 |  |  | $ | 619,142 |  |  | $ | 965,015 |
Corporate assets | 265,208 |  |  | 206,698 |  |  | 252,992 |
Total assets | $ | 1,337,346 |  |  | $ | 825,840 |  |  | $ | 1,218,007 |
The following tables provide geographic information required by ASC 280-10-50-41:
| December 31,
| 2012 |  | 2011
| (in thousands)
Revenues: |  |  |
U.S. | $ | 224,756 |  |  | $ | 225,715 |
Mexico | 40,245 |  |  | 19,421 |
Canada | 4,814 |  |  | 3,661 |
U.K | 7,311 |  |  | 76 |
Total | 277,126 |  |  | 248,873 |
| December 31, |  | September 30,
| 2012 |  | 2011 |  | 2012
| (in thousands)
Long-lived assets: |  |  |  |  |
U.S. | $ | 391,169 |  |  | $ | 283,462 |  |  | $ | 317,887 |
Mexico | 158,073 |  |  | 23,899 |  |  | 155,488 |
Canada | 9,658 |  |  | 9,745 |  |  | 10,199 |
U.K | 44,407 |  |  | 238 |  |  | 44,363 |
Other | 42 |  |  | — |  |  | 42 |
Total | $ | 603,349 |  |  | $ | 317,344 |  |  | $ | 527,979 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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