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Fair Value Measurements | 9 Months Ended
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Jun. 30, 2015
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 market-based inputs or unobservable inputs that are corroborated by market data Level 3 — Unobservable inputs that are not corroborated by market data The tables below present our financial assets (liabilities) that are measured at fair value on a recurring basis in our condensed consolidated balance sheets as of June 30, 2015 and 2014 and September 30, 2014:
|  | June 30, 2015 |  | Fair Value Measurements Using
Financial assets (liabilities) | Level 1 |  | Level 2 |  | Level 3
|  | (in thousands)
Foreign currency forwards |  | $ | 8,440 |  |  | $ | — |  |  | $ | 8,440 |  |  | $ | — |
Holding period adjustment |  | 47 |  |  | — |  |  | 47 |  |  | — |
Cash Convertible Notes hedges |  | 23,160 |  |  | — |  |  | 23,160 |  |  | — |
Contingent consideration |  | (2,836 | ) |  | — |  |  | — |  |  | (2,836 | )
Cash Convertible Notes embedded derivative |  | (23,160 | ) |  | — |  |  | (23,160 | ) |  | — |
Net financial assets (liabilities) |  | $ | 5,651 |  |  | $ | — |  |  | $ | 8,487 |  |  | $ | (2,836 | )
|  | June 30, 2014 |  | Fair Value Measurements Using
Financial (liabilities) assets | Level 1 |  | Level 2 |  | Level 3
|  | (in thousands)
Marketable equity securities |  | $ | 2,641 |  |  | $ | 2,641 |  |  | $ | — |  |  | $ | — |
Cash Convertible Notes hedges |  | 46,454 |  |  | — |  |  | 46,454 |  |  | — |
Contingent consideration |  | (4,383 | ) |  | — |  |  | — |  |  | (4,383 | )
Cash Convertible Notes embedded derivative |  | (46,454 | ) |  | — |  |  | (46,454 | ) |  | — |
Net financial (liabilities) assets |  | $ | (1,742 | ) |  | $ | 2,641 |  |  | $ | — |  |  | $ | (4,383 | )
|  | September 30, 2014 |  | Fair Value Measurements Using
Financial (liabilities) assets | Level 1 |  | Level 2 |  | Level 3
|  | (in thousands)
Foreign currency forwards |  | $ | 1,152 |  |  | $ | — |  |  | $ | 1,152 |  |  | $ | — |
Cash Convertible Notes hedges |  | 36,994 |  |  | — |  |  | 36,994 |  |  | — |
Contingent consideration |  | (3,758 | ) |  | — |  |  | — |  |  | (3,758 | )
Cash Convertible Notes embedded derivative |  | (36,994 | ) |  | — |  |  | (36,994 | ) |  | — |
Net financial (liabilities) assets |  | $ | (2,606 | ) |  | $ | — |  |  | $ | 1,152 |  |  | $ | (3,758 | )
Grupo Finmart measured the value of the foreign currency forwards using Level 2 inputs such as estimations of expected cash flows, appropriately risk-adjusted discount rates and other 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). Forward contracts are recorded in the condensed consolidated balance sheets under "Other assets, net" and "Deferred gains and other long-term liabilities." We measured the fair value of the Holding Period Adjustment using an option pricing model based on observable Level 1 and Level 2 inputs such as implied volatility, risk free interest rate and other factors. The Holding Period Adjustment is recorded in the condensed consolidated balance sheets under "Other assets, net." We measured the fair value of the Cash Convertible Notes Hedges and the Cash Convertible Notes Embedded Derivative using an option pricing model based on observable Level 1 and Level 2 inputs such as implied volatility, risk free interest rate and other factors. The Cash Convertible Notes Hedges are recorded in the condensed consolidated balance sheets under "Other assets, net." The Cash Convertible Notes Embedded Derivative is recorded in the condensed consolidated balance sheets under "Long-term debt, less current maturities." We used an income approach to measure the fair value of the contingent consideration using a risk-weighted discounted cash flow approach. Some of the significant inputs used for the valuation are not observable in the market and are thus Level 3 inputs. Contingent consideration is recorded in the condensed consolidated balance sheets under "Other current liabilities" and "Deferred gains and other long-term liabilities." Significant increases or decreases in the underlying assumptions used to value the contingent consideration could significantly increases or decrease the fair value estimates recorded in the condensed consolidated balance sheets. We measured the fair value of our marketable equity securities using Level 1 inputs. These assets were publicly traded equity securities for which market prices were readily available. Marketable equity securities are recorded in the condensed consolidated balance sheets under "Other assets, net." We sold all marketable equity securities during fiscal 2014. There were no transfers in or out of Level 1 or Level 2 for financial assets or liabilities measured at fair value on a recurring basis during the periods presented. Financial Assets, Temporary Equity and Liabilities Not Measured at Fair Value The tables below present our financial assets, temporary equity and liabilities that are not measured at fair value on a recurring basis in our condensed consolidated balance sheets as of June 30, 2015 and 2014 and September 30, 2014:
|  | Carrying Value |  | Estimated Fair Value
|  | June 30, 2015 |  | June 30, 2015 |  | Fair Value Measurement Using
|  | Level 1 |  | Level 2 |  | Level 3
|  | (in thousands)
Financial assets: |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 114,387 |  |  | $ | 114,387 |  |  | $ | 114,387 |  |  | $ | — |  |  | $ | — |
Restricted cash |  | 28,015 |  |  | 28,015 |  |  | 28,015 |  |  | — |  |  | — |
Pawn loans |  | 144,377 |  |  | 144,377 |  |  | — |  |  | — |  |  | 144,377 |
Consumer loans, net |  | 57,737 |  |  | 58,875 |  |  | — |  |  | — |  |  | 58,875 |
Pawn service charges receivable, net |  | 26,989 |  |  | 26,989 |  |  | — |  |  | — |  |  | 26,989 |
Consumer loan fees and interest receivable, net |  | 18,180 |  |  | 18,180 |  |  | — |  |  | — |  |  | 18,180 |
Restricted cash, non-current |  | 2,978 |  |  | 2,978 |  |  | 2,978 |  |  | — |  |  | — |
Non-current consumer loans, net |  | 82,739 |  |  | 85,304 |  |  | — |  |  | — |  |  | 85,304 |
Total |  | $ | 475,402 |  |  | $ | 479,105 |  |  | $ | 145,380 |  |  | $ | — |  |  | $ | 333,725 |
Temporary equity: |  |  |  |  |  |  |  |  |  |
Common Stock, subject to possible redemption |  | $ | 11,696 |  |  | $ | 11,241 |  |  | $ | — |  |  | $ | — |  |  | $ | 11,241 |
Redeemable noncontrolling interest |  | 16,361 |  |  | 33,297 |  |  | — |  |  | — |  |  | 33,297 |
Total |  | $ | 28,057 |  |  | $ | 44,538 |  |  | $ | — |  |  | $ | — |  |  | $ | 44,538 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |
2.125% cash convertible senior notes due 2019 |  | $ | 191,792 |  |  | $ | 181,746 |  |  | $ | — |  |  | $ | 181,746 |  |  | $ | — |
Foreign currency debt |  | 20,924 |  | * | 23,667 |  |  | — |  |  | 23,667 |  |  | — |
Consumer loans facility due 2019 |  | 46,552 |  |  | 45,843 |  |  | — |  |  | 45,843 |  |  | — |
Foreign currency unsecured notes |  | 17,557 |  | * | 18,536 |  |  | — |  |  | 18,536 |  |  | — |
Foreign currency secured notes |  | 23,076 |  | * | 25,639 |  |  | — |  |  | 25,639 |  |  | — |
Secured notes consolidated from VIEs |  | 86,805 |  | * | 83,640 |  |  | $ | — |  |  | $ | 83,640 |  |  | $ | — |
Total |  | $ | 386,706 |  |  | $ | 379,071 |  |  | $ | — |  |  | $ | 379,071 |  |  | $ | — |
* Portions of these amounts are included under "Current maturities of long-term debt" and "Long-term debt, less current maturities" in our condensed consolidated balance sheets.
|  | Carrying Value |  | Estimated Fair Value
|  | June 30, 2014 |  | June 30, 2014 |  | Fair Value Measurement Using
|  | Level 1 |  | Level 2 |  | Level 3
|  | (in thousands)
Financial assets: |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 49,434 |  |  | $ | 49,434 |  |  | $ | 49,434 |  |  | $ | — |  |  | $ | — |
Restricted cash |  | 49,129 |  |  | 49,129 |  |  | 49,129 |  |  | — |  |  | — |
Pawn loans |  | 157,491 |  |  | 157,491 |  |  | — |  |  | — |  |  | 157,491 |
Consumer loans, net |  | 64,787 |  |  | 65,396 |  |  | — |  |  | — |  |  | 65,396 |
Pawn service charges receivable, net |  | 29,307 |  |  | 29,307 |  |  | — |  |  | — |  |  | 29,307 |
Consumer loan fees and interest receivable, net |  | 15,032 |  |  | 15,032 |  |  | — |  |  | — |  |  | 15,032 |
Restricted cash, non-current |  | 4,578 |  |  | 4,578 |  |  | 4,578 |  |  | — |  |  | — |
Non-current consumer loans, net |  | 84,630 |  |  | 85,304 |  |  | — |  |  | — |  |  | 85,304 |
Total |  | $ | 454,388 |  |  | $ | 455,671 |  |  | $ | 103,141 |  |  | $ | — |  |  | $ | 352,530 |
Temporary equity: |  |  |  |  |  |  |  |  |  |
Redeemable noncontrolling interest |  | $ | 25,662 |  |  | $ | 25,015 |  |  | $ | — |  |  | $ | — |  |  | $ | 25,015 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |
2.125% cash convertible senior notes due 2019 |  | $ | 183,694 |  |  | $ | 183,694 |  |  | $ | — |  |  | $ | 183,694 |  |  | $ | — |
Foreign currency debt |  | 30,809 |  | * | 30,623 |  |  | — |  |  | 30,623 |  |  | — |
Consumer loans facility due 2019 |  | 56,075 |  |  | 56,216 |  |  | 56,216 |  |  | — |  |  | — |
Foreign currency unsecured notes |  | 37,394 |  | * | 37,478 |  |  | 30,008 |  |  | 7,470 |  |  | — |
Foreign currency secured notes |  | 27,231 |  | * | 26,617 |  |  | — |  |  | 26,617 |  |  | — |
Secured notes consolidated from VIEs |  | $ | 46,685 |  | * | 45,896 |  |  | — |  |  | $ | 45,896 |  |  | — |
Total |  | $ | 381,888 |  |  | $ | 380,524 |  |  | $ | 86,224 |  |  | $ | 294,300 |  |  | $ | — |
* Portions of these amounts are included under "Current maturities of long-term debt" and "Long-term debt, less current maturities" in our condensed consolidated balance sheets.
|  | Carrying Value |  | Estimated Fair Value
|  | September 30, 2014 |  | September 30, 2014 |  | Fair Value Measurement Using
|  | Level 1 |  | Level 2 |  | Level 3
|  | (in thousands)
Financial assets: |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 55,325 |  |  | $ | 55,325 |  |  | $ | 55,325 |  |  | $ | — |  |  | $ | — |
Restricted cash |  | 63,495 |  |  | 63,495 |  |  | 63,495 |  |  | — |  |  | — |
Pawn loans |  | 162,444 |  |  | 162,444 |  |  | — |  |  | — |  |  | 162,444 |
Consumer loans, net |  | 63,995 |  |  | 64,631 |  |  | — |  |  | — |  |  | 64,631 |
Pawn service charges receivable, net |  | 31,044 |  |  | 31,044 |  |  | — |  |  | — |  |  | 31,044 |
Consumer loan fees and interest receivable, net |  | 12,647 |  |  | 12,647 |  |  | — |  |  | — |  |  | 12,647 |
Restricted cash, non-current |  | 5,070 |  |  | 5,070 |  |  | 5,070 |  |  | — |  |  | — |
Non-current consumer loans, net |  | 85,004 |  |  | 86,364 |  |  | — |  |  | — |  |  | 86,364 |
Total |  | $ | 479,024 |  |  | $ | 481,020 |  |  | $ | 123,890 |  |  | $ | — |  |  | $ | 357,130 |
Temporary equity: |  |  |  |  |  |  |  |  |  |
Redeemable noncontrolling interest |  | $ | 22,800 |  |  | $ | 49,021 |  |  | $ | — |  |  | $ | — |  |  | $ | 49,021 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |
2.125% cash convertible senior notes due 2019 |  | $ | 185,693 |  |  | $ | 185,738 |  |  | $ | — |  |  | $ | 185,738 |  |  | $ | — |
Foreign currency debt |  | 27,185 |  | * | 27,185 |  |  | — |  |  | 27,185 |  |  | — |
Consumer loans facility due 2019 |  | 54,045 |  |  | 54,178 |  |  | 54,178 |  |  | — |  |  | — |
Foreign currency unsecured notes |  | 36,991 |  | * | 36,837 |  |  | — |  |  | 36,837 |  |  | — |
Foreign currency secured notes |  | 26,195 |  | * | 26,144 |  |  | — |  |  | 26,144 |  |  | — |
Secured notes consolidated from VIEs |  | 61,062 |  | * | 59,906 |  |  | — |  |  | 59,906 |  |  | — |
Total |  | $ | 391,171 |  |  | $ | 389,988 |  |  | $ | 54,178 |  |  | $ | 335,810 |  |  | $ | — |
* Portions of these amounts are included under "Current maturities of long-term debt" and "Long-term debt, less current maturities" in our condensed consolidated balance sheets. Cash and cash equivalents and restricted cash bear interest at market rates and have maturities of less than 90 days, as applicable. Based on the short-term nature of these assets we estimate that their carrying value approximates fair value. The maximum U.S. pawn loan term ranges between 30 and 120 days, with an additional grace period between 0 and 90 days. The maximum Mexico pawn loan term is 30 days, with an additional grace period up to 10 days. Significant increases or decreases in the underlying assumptions used to value the pawn loans could significantly increase or decrease the fair value estimates disclosed above. Based on the short-term collateralized nature of these assets 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 condensed consolidated balance sheets 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 less than 12 months; therefore, we estimate that their carrying value approximates fair value. Consumer loans made by Grupo Finmart have an average stated 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. Significant increases or decreases in the underlying assumptions used to value the consumer loans could significantly increase or decrease the fair value estimates disclosed above. We record pawn service charges receivable 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. Based on the short-term nature of these assets we estimate that their carrying value approximates fair value. Significant increases or decreases in the underlying assumptions used to value the pawn service charges receivable could significantly increase or decrease the fair value estimates disclosed above. Consumer loan fees and interest receivable are carried 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 these assets we estimate that their carrying value approximates fair value. Significant increases or decreases in the underlying assumptions used to value the consumer loan fees and interest receivable could significantly increase or decrease the fair value estimates disclosed above. The fair value of the redeemable noncontrolling interest was estimated by applying an income approach. This fair value measurement is based on significant Level 3 inputs that are not observable in the market. Key assumptions include discount rates ranging from 5% to 10%, representing discounts for lack of control and lack of marketability that market participants would consider when estimating the fair value of the noncontrolling interest. Significant increases or decreases in the underlying assumptions used to value the redeemable noncontrolling interest could significantly increase or decrease the fair value estimates disclosed above. The fair value of the Common Stock, subject to possible redemption was estimated by applying an income approach. This fair value measurement is based on significant Level 3 inputs that are not observable in the market. Key assumptions include a discount rate of 7.2%, which approximated the Company’s incremental borrowing rate. Significant increases or decreases in the underlying assumptions used to value the Common Stock, subject to possible redemption could significantly increase or decrease the fair value estimates disclosed above. We measured the fair value of our 2.125% cash convertible senior notes due 2019 and the embedded derivative as of June 30, 2015 using quoted price inputs from Bloomberg. The 2.125% cash convertible senior notes due 2019 and the embedded derivative are not actively traded and thus the price inputs represent a Level 2 measurement. There was a change in the valuation technique we used to measure our 2.125% cash convertible senior notes due 2019 and the embedded derivative during the quarter ended March 31, 2015 as we believe the quoted price inputs obtained from Bloomberg more accurately represent the fair value of our 2.125% cash convertible senior notes due 2019 and the embedded derivative. As the 2.125% cash convertible senior notes due 2019 and the embedded derivative are not actively traded, the quoted price inputs obtained from Bloomberg are highly variable from day to day and thus could significantly increase or decrease the fair value estimates disclosed above. We measured the fair value of our 2.125% cash convertible senior notes due 2019 and the embedded derivative using an income approach as of September 30, 2014. The fair value was based on the carrying value of the Cash Convertible Notes accreting to the $230.0 million redemption value using a discount rate of 7%, which approximated the Company’s incremental borrowing rate for a similar debt instrument (without the cash conversion feature) as of the date of issuance and thus utilizes Level 2 inputs. 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, quoted price and yield inputs 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 measurements. For financial liability fair value measurements that are classified as Level 1 measurements, we utilized quoted price and yield inputs from Bloomberg and a price vendor authorized by the Comisión Nacional Bancaria y de Valores. See Note 5 for discussion of the fair value of our investment in unconsolidated affiliate.

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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 Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 2: 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 3: 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 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13537-108611 Reference 5: 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=49121117&loc=d3e13504-108611 Reference 6: 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=49121117&loc=d3e13433-108611 + Details
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