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Goodwill and Other Intangible Assets | 9 Months Ended
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Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | NOTE 6: GOODWILL AND OTHER INTANGIBLE ASSETS The following table presents the balance of goodwill and each major class of intangible assets as of the specified dates:
| June 30, 2015 |  | June 30, 2014 |  | September 30, 2014
| (in thousands)
Goodwill | $ | 331,849 |  |  | $ | 436,765 |  |  | $ | 346,577 |
Indefinite-lived intangible assets, net: |  |  |  |  |
Pawn licenses | $ | 8,836 |  |  | $ | 8,836 |  |  | $ | 8,836 |
Trade names | 6,697 |  |  | 8,281 |  |  | 6,990 |
Domain name | — |  |  | 228 |  |  | 13 |
Total indefinite-lived intangible assets, net | $ | 15,533 |  |  | $ | 17,345 |  |  | $ | 15,839 |
Definite-lived intangible assets, net: |  |  |  |  |
Real estate finders’ fees | $ | 1,025 |  |  | $ | 841 |  |  | $ | 787 |
Non-compete agreements | 303 |  |  | 431 |  |  | 391 |
Favorable lease | 452 |  |  | 541 |  |  | 517 |
Franchise rights | 1,062 |  |  | 1,294 |  |  | 1,222 |
Contractual relationship | 10,364 |  |  | 14,164 |  |  | 13,222 |
Internally developed software | 21,257 |  |  | 27,914 |  |  | 18,759 |
Deferred financing costs | 10,434 |  |  | 16,003 |  |  | 15,143 |
Other | 145 |  |  | 212 |  |  | 206 |
Total definite-lived intangible assets, net | $ | 45,042 |  |  | $ | 61,400 |  |  | $ | 50,247 |
Intangible assets, net | $ | 60,575 |  |  | $ | 78,745 |  |  | $ | 66,086 |
The following tables present the changes in the carrying value of goodwill during the periods presented:
| U.S. & Canada |  | Latin America |  | Other International |  | Consolidated
| (in thousands)
Balances as of September 30, 2014 | $ | 239,179 |  |  | $ | 107,398 |  |  | $ | — |  |  | $ | 346,577 |
Acquisitions | 10,710 |  |  | — |  |  | — |  |  | 10,710 |
Impairment | (10,550 | ) |  | — |  |  | — |  |  | (10,550 | )
Effect of foreign currency translation changes | — |  |  | (14,888 | ) |  | — |  |  | (14,888 | )
Balances as of June 30, 2015 | $ | 239,339 |  |  | $ | 92,510 |  |  | $ | — |  |  | $ | 331,849 |
| U.S. & Canada |  | Latin America |  | Other International |  | Consolidated
| (in thousands)
Balances as of September 30, 2013 | $ | 283,199 |  |  | $ | 110,209 |  |  | $ | 39,892 |  |  | $ | 433,300 |
Effect of foreign currency translation changes | — |  |  | 1,228 |  |  | 2,237 |  |  | 3,465 |
Balances as of June 30, 2014 | $ | 283,199 |  |  | $ | 111,437 |  |  | $ | 42,129 |  |  | $ | 436,765 |
On February 19, 2015, we completed the acquisition of 12 pawn stores in Central Texas doing business under the "Cash Pawn" brand. We recorded $10.7 million in goodwill pertaining to this acquisition. The acquisition was made as part of our continuing strategy to enhance our earnings over the long-term. The factors contributing to the recognition of goodwill were based on several strategic and synergistic benefits we expect to realize from the acquisitions. These benefits include a greater presence in the Central Texas market, as well as the ability to further leverage our expense structure through increased scale. See Note 3 for additional information regarding the acquisition. See Note 18 for discussion of an additional acquisition completed subsequent to June 30, 2015. In accordance with ASC 350-20-35, Goodwill — Subsequent Measurement, we test goodwill and intangible assets with an indefinite useful life for potential impairment annually, or more frequently when there are events or circumstances that indicate that it is more likely than not that an impairment exists. During the nine-month period ended June 30, 2015, we evaluated such events and circumstances and concluded that there were indicators of impairment under ASC 350-20-35-3C. These indicators of impairment primarily include a continued decline in our stock price in addition to Consumer Financial Protection Bureau proposals issued in March 2015, whose impact was subsequently evaluated by management. We performed a quantitative Step 1 analysis under ASC 350-20-35 and determined that the fair value of each of our reporting units exceeded the carrying value, with the exception of our U.S. Financial Services reporting unit. The fair values of each reporting unit were determined based upon a discounted cash flow approach. We further measured the impairment of goodwill associated with the U.S. Financial Services reporting unit under Step 2 and determined that $10.6 million, the entire amount of goodwill associated with the U.S. Financial Services reporting unit, should be written-off during the three-month period ended June 30, 2015. The impairment was recorded under "Impairment of goodwill" on the condensed consolidated statements of operations under the U.S. and Canada segment. No other long-term assets were determined to be impaired as of June 30, 2015. We will further perform our required annual impairment test in the fourth quarter of our fiscal 2015. See Note 18 for discussion of goodwill and other long-term asset impairment that occurred subsequent to June 30, 2015, including impairments associated with our discontinuance of the U.S. Financial Services business announced in July 2015. The amortization of most definite-lived intangible assets is recorded as amortization expense. The favorable lease asset and other intangibles are amortized to operations expense (rent expense) over the related lease terms. The deferred financing costs are amortized to interest expense over the life of the related debt instrument. The following table presents the amount and classification of amortization recognized as expense in each of the periods presented, without regard for any subsequent impairments of intangible assets:
| Three Months Ended June 30, |  | Nine Months Ended June 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
| (in thousands)
Amortization expense in continuing operations | $ | 1,380 |  |  | $ | 1,306 |  |  | $ | 4,205 |  |  | $ | 4,064 |
Amortization expense in discontinued operations | — |  |  | 334 |  |  | — |  |  | 1,491 |
Operations expense | 25 |  |  | 30 |  |  | 77 |  |  | 91 |
Interest expense | 798 |  |  | 1,616 |  |  | 3,423 |  |  | 4,166 |
Total expense from the amortization of definite-lived intangible assets | $ | 2,203 |  |  | $ | 3,286 |  |  | $ | 7,705 |  |  | $ | 9,812 |
The following table presents our estimate of the amount and classification of future amortization expense for definite-lived intangible assets, without regard for any subsequent impairments of intangible assets:
Fiscal Years Ended September 30, |  | Amortization Expense |  | Operations Expense |  | Interest Expense
|  | (in thousands)
2015 |  | $ | 1,893 |  |  | $ | 27 |  |  | $ | 438 |
2016 |  | 6,762 |  |  | 106 |  |  | 1,754 |
2017 |  | 6,527 |  |  | 106 |  |  | 1,754 |
2018 |  | 5,556 |  |  | 106 |  |  | 1,754 |
2019 |  | 4,826 |  |  | 78 |  |  | 1,325 |
As acquisitions and dispositions occur in the future, amortization expense may vary from these estimates.

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- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
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