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Discontinued Operations | 12 Months Ended
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Sep. 30, 2014
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations and Restructuring | DISCONTINUED OPERATIONS AND RESTRUCTURING (AS RESTATED) Discontinued Operations During the fourth quarter of fiscal 2014, as part of our new strategy to concentrate on an integrated, customer-centric financial services model that is focused on our core businesses of pawn and unsecured lending, we implemented a plan to exit our online lending businesses in the United States and the United Kingdom. As a result of this plan, our online lending operations in the United Kingdom (Cash Genie) and in the United States (EZOnline) have been included as discontinued operations. During the third quarter of fiscal 2013, we implemented a plan to close 107 legacy stores in a variety of locations. These stores were generally older, smaller stores that did not fit our future growth profile. Store closures as discontinued operations included:
▪ | 57 stores in Mexico, 52 of which were small, jewelry-only asset group formats. We continue to operate our full-service store-within-a-store ("SWS") locations under the Empeño Fácil brand, and expect to continue our storefront growth in Mexico.
▪ | 29 stores in Canada, where we were in the process of transitioning to an integrated buy/sell and financial services model under the Cash Converters brand. The affected asset group consisted of stores that were not optimal for that model because of location or size. We continue to operate full-service buy/sell and financial services center stores under the Cash Converters brand in Canada and the United States.
▪ | 20 financial services stores in Dallas, Texas and the State of Florida, where we exited both locations primarily due to onerous regulatory requirements.
▪ | One jewelry-only concept store, which was our only jewelry-only store in the United States.
The following table summarizes the pre-tax charges (gains), which have been recorded under “Loss from discontinued operations, net of tax” in our fiscal 2014 and 2013 consolidated statements of operations:
| Fiscal Year Ended September 30,
| 2014 |  | 2013
| (in thousands)
Goodwill impairment | $ | 84,158 |  |  | $ | — |
Long-lived assets impairment | 11,795 |  |  | 5,605 |
Other* | 7,590 |  |  | 896 |
Asset write-down to liquidation value | 2,882 |  |  | 7,081 |
Lease termination costs | 1,504 |  |  | 8,608 |
Reversal of contingent consideration payable | (4,792 | ) |  | — |
| $ | 103,137 |  |  | $ | 22,190 |
*Other one-time charges in fiscal 2014 include estimated costs related to regulatory compliance, employee severance and accelerated amortization of prepaid expenses and other assets. Charges in fiscal 2013 include costs related to employee severance. As of September 30, 2014 and 2013, accrued lease termination costs, severance costs, and others related to discontinued operations were $8.9 million and $7.1 million, respectively. These amounts are included in “Accounts payable and other accrued expenses” in our consolidated balance sheets. During the fiscal year ended September 30, 2014, $0.2 million in cash payments had been made with regard to the costs recorded during the fiscal year ended September 30, 2014. We estimate we will make the remaining payments during the first half of fiscal 2015, at which time this initiative will be substantially complete. The amount of any potential future charges for such actions will depend upon the nature, timing and extent of those actions. During the fiscal years ended September 30, 2014 and 2013, we made cash payments of $3.8 million and $1.6 million, respectively, with regard to the costs recorded during the fiscal year ended September 30, 2013. Additionally during fiscal 2014, we recorded a $3.3 million benefit as negotiated amounts were lower than the initial estimates. Discontinued operations in the fiscal years ended September 30, 2014, 2013 and 2012 include $31.4 million, $45.3 million and $28.0 million of total revenues, respectively. The table below summarizes the operating losses from discontinued operations by operating segment:
| Fiscal Year Ended September 30,
| 2014 |  | 2013 |  | 2012
| As Restated (See Note 2) |  |
| (in thousands)
U.S. & Canada: |  |  |  |  |
Net revenues | $ | 6,717 |  |  | $ | 8,739 |  |  | $ | 6,545 |
Expenses | 13,163 |  |  | 22,548 |  |  | 10,910 |
Operating loss from discontinued operations before taxes | (6,446 | ) |  | (13,809 | ) |  | (4,365 | )
Total termination costs related to the reorganization | 48,126 |  |  | 13,049 |  |  | — |
Loss from discontinued operations before taxes | (54,572 | ) |  | (26,858 | ) |  | (4,365 | )
Income tax benefit (provision) | 19,819 |  |  | 4,144 |  |  | (77 | )
Loss from discontinued operations, net of tax | $ | (34,753 | ) |  | $ | (22,714 | ) |  | $ | (4,442 | )
Latin America: |  |  |  |  |
Net revenues | $ | (1,504 | ) |  | $ | 5,215 |  |  | $ | 3,645 |
Expenses | 398 |  |  | 4,461 |  |  | 4,560 |
Operating (loss) income from discontinued operations before taxes | (1,902 | ) |  | 754 |  |  | (915 | )
Total termination (benefits) costs related to the reorganization | (2,037 | ) |  | 9,141 |  |  | — |
Income (loss) from discontinued operations before taxes | 135 |  |  | (8,387 | ) |  | (915 | )
Income tax (provision) benefit | (41 | ) |  | 2,516 |  |  | 307 |
Income (loss) from discontinued operations, net of tax | $ | 94 |  |  | $ | (5,871 | ) |  | $ | (608 | )
Other International: |  |  |  |  |
Net revenues | $ | 7,036 |  |  | $ | 12,767 |  |  | $ | 6,528 |
Expenses | 11,301 |  |  | 17,454 |  |  | 6,734 |
Operating loss from discontinued operations before taxes | (4,265 | ) |  | (4,687 | ) |  | (206 | )
Total termination costs related to the reorganization | 53,100 |  |  | — |  |  | — |
Loss from discontinued operations before taxes | (57,365 | ) |  | (4,687 | ) |  | (206 | )
Income tax provision | — |  |  | — |  |  | (87 | )
Loss from discontinued operations, net of tax | (57,365 | ) |  | (4,687 | ) |  | (293 | )
Net (loss) income from discontinued operations attributable to redeemable noncontrolling interest | — |  |  | (76 | ) |  | 147 |
Net loss from discontinued operations | $ | (57,365 | ) |  | $ | (4,611 | ) |  | $ | (440 | )
Consolidated: |  |  |  |  |
Net revenues | $ | 12,249 |  |  | $ | 26,721 |  |  | $ | 16,718 |
Expenses | 24,862 |  |  | 44,463 |  |  | 22,204 |
Operating loss from discontinued operations before taxes | (12,613 | ) |  | (17,742 | ) |  | (5,486 | )
Total termination costs related to the reorganization* | 99,189 |  |  | 22,190 |  |  | — |
Loss from discontinued operations before taxes | (111,802 | ) |  | (39,932 | ) |  | (5,486 | )
Income tax benefit | 19,778 |  |  | 6,660 |  |  | 143 |
Loss from discontinued operations, net of tax | (92,024 | ) |  | (33,272 | ) |  | (5,343 | )
Net (loss) income from discontinued operations attributable to redeemable noncontrolling interest | — |  |  | (76 | ) |  | 147 |
Net loss from discontinued operations | $ | (92,024 | ) |  | $ | (33,196 | ) |  | $ | (5,490 | )
* | Fiscal 2014 includes a $3.3 million benefit related to the fiscal 2013 reorganization due to differences between the initial estimated termination costs and the final amounts settled during the year.
All revenue, expense and income reported in these consolidated financial statements have been adjusted to reflect reclassification of all discontinued operations. Restructuring During the fourth quarter of fiscal 2014, we conducted a company-wide operational review to realign our organization to streamline operations and create synergies and efficiencies. The operational review resulted in the reduction of non-customer-facing overhead. Activity for restructuring costs during fiscal 2014 resulting from this initiative is summarized as follows:
| Balance at |  | Charged to |  | Cash |  | Balance at
| September 30, 2013 |  | Expense |  | Payments |  | September 30, 2014
| (in thousands)
Restructuring charges | $ | — |  |  | $ | 6,664 |  |  | $ | (543 | ) |  | $ | 6,121 |
The accruals for restructuring costs at September 30, 2014 represent the amounts to be paid related to severance for employees that have been terminated or identified for termination as a result of the initiatives described above. Restructuring charges are considered corporate costs and therefore are not allocated to a specific segment. These amounts are included in “Restructuring” expense in our consolidated statements of operations and are expected to be paid during fiscal 2015. We estimate we will make the remaining payments during the first half of fiscal 2015, at which time this initiative will be substantially complete. We continue to review the impact of these actions and will determine if, based on future operating results, additional actions to reduce operating expenses are necessary. The amount of any potential future charges for such actions will depend upon the nature, timing and extent of those actions.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=51716988&loc=SL51721533-107759 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721665-107760 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5C -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721675-107760 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3A -URI http://asc.fasb.org/extlink&oid=51719941&loc=SL51724579-110230 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721663-107760 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51719941&loc=d3e2941-110230 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51717284&loc=d3e1361-107760 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5B -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721673-107760 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3A -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721659-107760 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5A -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721671-107760 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5D -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721677-107760 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51717284&loc=d3e1474-107760 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721683-107760 + Details
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