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Fair Value Measurements | 3 Months Ended
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Dec. 31, 2013
Fair Value Disclosures [Abstract] |
FAIR VALUE MEASUREMENTS | NOTE 14: FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements In accordance with FASB ASC 820-10, Fair Value Measurements and Disclosures, our assets and liabilities, which are carried at fair value, are classified in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Other observable inputs other than quoted market prices. Level 3: Unobservable inputs that are not corroborated by market data. The tables below present our financial assets that are measured at fair value on a recurring basis as of December 31, 2013, December 31, 2012 and September 30, 2013:
|  | December 31, 2013 |  | Fair Value Measurements Using
Financial assets (liabilities or temporary equity): | Level 1 |  | Level 2 |  | Level 3
|  | (in thousands)
Marketable equity securities |  | $ | 2,092 |  |  | $ | 2,092 |  |  | $ | — |  |  | $ | — |
Forward contracts |  | 1,952 |  |  | — |  |  | 1,952 |  |  | — |
Contingent consideration |  | (16,120 | ) |  | — |  |  | — |  |  | (16,120 | )
Net financial assets (liabilities or temporary equity) |  | $ | (12,076 | ) |  | $ | 2,092 |  |  | $ | 1,952 |  |  | $ | (16,120 | )
|  | December 31, 2012 |  | Fair Value Measurements Using
Financial assets (liabilities or temporary equity): | Level 1 |  | Level 2 |  | Level 3
|  | (in thousands)
Marketable equity securities |  | $ | 4,588 |  |  | $ | 4,588 |  |  | $ | — |  |  | $ | — |
Contingent consideration |  | (28,386 | ) |  | — |  |  | — |  |  | (28,386 | )
Net financial assets (liabilities or temporary equity) |  | $ | (23,798 | ) |  | $ | 4,588 |  |  | $ | — |  |  | $ | (28,386 | )
|  | September 30, 2013 |  | Fair Value Measurements Using
Financial assets (liabilities or temporary equity): | Level 1 |  | Level 2 |  | Level 3
|  | (in thousands)
Marketable equity securities |  | $ | 2,339 |  |  | $ | 2,339 |  |  | $ | — |  |  | $ | — |
Forward contracts |  | 1,813 |  |  | — |  |  | 1,813 |  |  | — |
Contingent consideration |  | (16,089 | ) |  | — |  |  | — |  |  | (16,089 | )
Net financial assets (liabilities or temporary equity) |  | $ | (11,937 | ) |  | $ | 2,339 |  |  | $ | 1,813 |  |  | $ | (16,089 | )
We measure the value of our marketable equity securities under a Level 1 input. These assets are publicly traded equity securities for which market prices are readily available. There were no transfers of assets in or out of Level 1 or Level 2 fair value measurements in the periods presented. At December 31, 2013 our marketable equity securities were in an unrealized loss position. The aggregate amount of unrealized losses at December 31, 2013 was nominal and we currently believe that the fair value decline is temporary. Grupo Finmart measures the value of the forward contracts under a Level 2 input. To measure the fair value of the forward contracts, Grupo Finmart used estimations of expected cash flows, appropriately risk-adjusted discount rates and available observable inputs (term of the forward, notional amount, discount rates based on local and foreign rate curves, and a credit value adjustment to consider the likelihood of nonperformance). We used an income approach to measure the fair value of the contingent consideration using a probability-weighted discounted cash flow approach, in which all outcomes were successful. The significant inputs used for the valuation are not observable in the market, and thus this fair value measurement represents a Level 3 measurement within the fair value hierarchy. During the three month period ended December 31, 2013, we recorded nominal accretion expense, bringing the total contingent consideration liability to $16.1 million. During the three month period ended December 31, 2012, we recorded accretion expense of $0.2 million and $4.8 million of additional contingent consideration, attributable to the Go Cash acquisition, bringing the contingent liability to $28.4 million at December 31, 2012. These amounts are included in administrative expenses in our condensed consolidated statement of operations. Financial Assets and Liabilities Not Measured at Fair Value Our financial assets and liabilities as of December 31, 2013, December 31, 2012 and September 30, 2013, that are not measured at fair value in the condensed consolidated balance sheets, are as follows:
|  | Carrying Value |  | Estimated Fair Value
|  | December 31, 2013 |  | December 31, 2013 |  | Fair Value Measurement Using
|  | Level 1 |  | Level 2 |  | Level 3
Financial assets: |  | (in thousands)
Cash and cash equivalents |  | $ | 38,486 |  |  | $ | 38,486 |  |  | $ | 38,486 |  |  | $ | — |  |  | $ | — |
Restricted cash |  | 4,019 |  |  | 4,019 |  |  | 4,019 |  |  | — |  |  | — |
Pawn loans |  | 153,421 |  |  | 153,421 |  |  | — |  |  | — |  |  | 153,421 |
Consumer loans, net |  | 82,807 |  |  | 90,377 |  |  | — |  |  | — |  |  | 90,377 |
Pawn service charges receivable, net |  | 30,842 |  |  | 30,842 |  |  | — |  |  | — |  |  | 30,842 |
Consumer loan fees receivable, net |  | 40,181 |  |  | 40,181 |  |  | — |  |  | — |  |  | 40,181 |
Restricted cash, non-current |  | 2,742 |  |  | 2,742 |  |  | 2,742 |  |  | — |  |  | — |
Non-current consumer loans, net |  | 60,750 |  |  | 69,309 |  |  | — |  |  | — |  |  | 69,309 |
Total |  | $ | 413,248 |  |  | $ | 429,377 |  |  | $ | 45,247 |  |  | $ | — |  |  | $ | 384,130 |
Temporary equity: |  |  |  |  |  |  |  |  |  |
Redeemable noncontrolling interest |  | $ | 57,578 |  |  | $ | 55,557 |  |  | $ | — |  |  | $ | — |  |  | $ | 55,557 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |
Domestic line of credit |  | $ | 146,500 |  |  | $ | 146,500 |  |  | $ | — |  |  | $ | 146,500 |  |  | $ | — |
Foreign currency lines of credit |  | 32,838 |  |  | 33,801 |  |  | — |  |  | 33,801 |  |  | — |
Securitization borrowing facility |  | 32,147 |  |  | 32,225 |  |  | 32,225 |  |  | — |  |  | — |
Unsecured Notes |  | 36,381 |  |  | 36,673 |  |  | 16,523 |  |  | 20,150 |  |  | — |
Secured Notes |  | 4,160 |  |  | 4,001 |  |  | — |  |  | 4,001 |  |  | — |
Total |  | $ | 252,026 |  |  | $ | 253,200 |  |  | $ | 48,748 |  |  | $ | 204,452 |  |  | $ | — |
|  | Carrying Value |  | Estimated Fair Value
|  | December 31, 2012 |  | December 31, 2012 |  | Fair Value Measurement Using
|  | Level 1 |  | Level 2 |  | Level 3
Financial assets: |  | (in thousands)
Cash and cash equivalents |  | $ | 46,668 |  |  | $ | 46,668 |  |  | $ | 46,668 |  |  | $ | — |  |  | $ | — |
Restricted cash |  | 1,133 |  |  | 1,133 |  |  | 1,133 |  |  | — |  |  | — |
Pawn loans |  | 162,150 |  |  | 162,150 |  |  | — |  |  | — |  |  | 162,150 |
Consumer loans, net |  | 40,470 |  |  | 43,374 |  |  | — |  |  | — |  |  | 43,374 |
Pawn service charges receivable, net |  | 31,077 |  |  | 31,077 |  |  | — |  |  | — |  |  | 31,077 |
Consumer loan fees receivable, net |  | 34,073 |  |  | 34,073 |  |  | — |  |  | — |  |  | 34,073 |
Restricted cash, non-current |  | 1,994 |  |  | 1,994 |  |  | 1,994 |  |  | — |  |  | — |
Non-current consumer loans, net |  | 66,615 |  |  | 80,199 |  |  | — |  |  | — |  |  | 80,199 |
Total |  | $ | 384,180 |  |  | $ | 400,668 |  |  | $ | 49,795 |  |  | $ | — |  |  | $ | 350,873 |
Temporary equity: |  |  |  |  |  |  |  |  |  |
Redeemable noncontrolling interest |  | $ | 49,323 |  |  | $ | 49,323 |  |  | $ | — |  |  | $ | — |  |  | $ | 49,323 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |
Domestic line of credit |  | $ | 142,600 |  |  | $ | 142,600 |  |  | $ | — |  |  | $ | 142,600 |  |  | $ | — |
Foreign currency lines of credit |  | 33,652 |  |  | 33,924 |  |  | — |  |  | 33,924 |  |  | — |
Securitization borrowing facility |  | 32,338 |  |  | 32,430 |  |  | 32,430 |  |  | — |  |  | — |
Unsecured Notes |  | 22,560 |  |  | 21,839 |  |  | — |  |  | 21,839 |  |  | — |
Secured Notes |  | 4,390 |  |  | 4,205 |  |  | — |  |  | 4,205 |  |  | — |
Total |  | $ | 235,540 |  |  | $ | 234,998 |  |  | $ | 32,430 |  |  | $ | 202,568 |  |  | $ | — |
|  | Carrying Value |  | Estimated Fair Value
|  | September 30, 2013 |  | September 30, 2013 |  | Fair Value Measurement Using
|  | Level 1 |  | Level 2 |  | Level 3
Financial assets: |  | (in thousands)
Cash and cash equivalents |  | $ | 36,317 |  |  | $ | 36,317 |  |  | $ | 36,317 |  |  | $ | — |  |  | $ | — |
Restricted cash |  | 3,312 |  |  | 3,312 |  |  | 3,312 |  |  | — |  |  | — |
Pawn loans |  | 156,637 |  |  | 156,637 |  |  | — |  |  | — |  |  | 156,637 |
Consumer loans, net |  | 64,515 |  |  | 74,979 |  |  | — |  |  | — |  |  | 74,979 |
Pawn service charges receivable, net |  | 30,362 |  |  | 30,362 |  |  | — |  |  | — |  |  | 30,362 |
Consumer loan fees receivable, net |  | 36,588 |  |  | 36,588 |  |  | — |  |  | — |  |  | 36,588 |
Restricted cash, non-current |  | 2,156 |  |  | 2,156 |  |  | 2,156 |  |  | — |  |  | — |
Non-current consumer loans, net |  | 69,991 |  |  | 89,693 |  |  | — |  |  | — |  |  | 89,693 |
Total |  | $ | 399,878 |  |  | $ | 430,044 |  |  | $ | 41,785 |  |  | $ | — |  |  | $ | 388,259 |
Temporary equity: |  |  |  |  |  |  |  |  |  |
Redeemable noncontrolling interest |  | $ | 55,393 |  |  | $ | 55,557 |  |  | $ | — |  |  | $ | — |  |  | $ | 55,557 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |
Domestic line of credit |  | $ | 140,900 |  |  | $ | 140,900 |  |  | $ | — |  |  | $ | 140,900 |  |  | $ | — |
Foreign currency lines of credit |  | 30,310 |  |  | 31,832 |  |  | — |  |  | 31,832 |  |  | — |
Securitization borrowing facility |  | 31,951 |  |  | 32,027 |  |  | 32,027 |  |  | — |  |  | — |
Unsecured Notes |  | 39,029 |  |  | 38,734 |  |  | 15,686 |  |  | 23,048 |  |  | — |
Secured Notes |  | 4,185 |  |  | 4,026 |  |  | — |  |  | 4,026 |  |  | — |
Total |  | $ | 246,375 |  |  | $ | 247,519 |  |  | $ | 47,713 |  |  | $ | 199,806 |  |  | $ | — |
Cash and cash equivalents and restricted cash bear interest at market rates and have maturities of less than 90 days. The total U.S. pawn loan term ranges between 60 and 120 days, consisting of the primary term and grace period. The total Mexico pawn loan term is 40 days, consisting of the primary term and grace period. We record pawn service charges using the interest method for all pawn loans we believe to be collectible. We base our estimate of collectible loans on several unobservable inputs, including recent redemption rates, historical trends in redemption rates and the amount of loans due in the following two months. Consumer loan fees and interest receivable are carried in the consolidated balance sheet net of the allowance for uncollectible consumer loan fees and interest receivable, which is based on recent loan default experience adjusted for seasonal variations and collection percentages. Based on the short-term nature of the assets discussed above we estimate that their carrying value approximates fair value. Consumer loans, including long-term unsecured consumer loans made by Grupo Finmart, are carried in the consolidated balance sheet net of the allowance for estimated loan losses, which is based on recent loan default experience adjusted for seasonal variations. Consumer loans, other than those made by Grupo Finmart, have relatively short maturity periods that are generally 12 months; therefore, we estimate that their carrying value approximates fair value. Consumer loans made by Grupo Finmart have an average term of approximately 30 months. We estimated the fair value of the Grupo Finmart consumer loans by applying an income approach (the present value of future cash flows). Key assumptions include an annualized probability of default as well as a discount rate based on the funding rate plus the portfolio liquidity risk. The fair value of the redeemable noncontrolling interest was estimated by applying an income approach. This fair value measurement is based on significant inputs that are not observable in the market and thus represents a Level 3 measurement. Key assumptions include discount rates ranging from 10% to 18%, representing discounts for lack of control and lack of marketability that market participants would consider when estimating the fair value of the noncontrolling interest. We measure the fair value of our financial liabilities using an income approach. Fair value measurements for our domestic line of credit were calculated using discount rates based on an estimated senior secured spread plus term matched risk free rates as of the valuation dates. We utilize credit quality-related zero rate curves for Mexican Pesos built by a price vendor authorized by the Comisión Nacional Bancaria y de Valores to determine the fair value measurements of the remaining financial liabilities that are classified as Level 2. For fair value measurements that are classified as Level 1, we utilize quoted price and yield inputs from Bloomberg and a price vendor authorized by the Comisión Nacional Bancaria y de Valores.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15A -Subparagraph a-d -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 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15C, 15D -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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 3, 10, 14, 15 -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 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32, 33, 34 -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. 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Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13504-108611 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15B -Subparagraph a, b -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 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 17-22, 27, 28 -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. + Details
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