Note 19 - Segment Reporting

3 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

19—Segment

Reporting

The Company operates through strategic business units that are aggregated into

four

reportable segments: consumer receivables, personal injury claims, structured settlements, and GAR Disability Advocates. The

four

reportable segments consist of the following:

• Consumer receivables -  The consumer receivables segment is engaged in the business of purchasing, managing for its own account and servicing distressed consumer receivables, including judgment receivables, charged off receivables and semi-performing receivables. Judgment receivables are accounts where outside attorneys have secured judgments directly against the consumer. Primary charged-off receivables are accounts that have been written-off by the originators and may have been previously serviced by collection agencies. Semi-performing receivables are accounts where the debtor is currently making partial or irregular monthly payments, but the accounts may have been written-off by the originators. Distressed consumer receivables are the unpaid debts of individuals to banks, finance companies and other credit providers. A large portion of our distressed consumer receivables are MasterCard ® , Visa ® and other credit card accounts which were charged-off by the issuers or providers for non-payment. We acquire these and other consumer receivable portfolios at substantial discounts to their face values. The discounts are based on the characteristics (issuer, account size, debtor location and age of debt) of the underlying accounts of each portfolio. The business conducts its activities primarily under the name Palisades Collection, LLC.

• Personal injury claims   – Pegasus Funding, LLC, purchases interests in personal injury claims from claimants who are a party to personal injury litigation. Pegasus advances to each claimant funds on a non-recourse basis at an agreed upon interest rate, in anticipation of a future settlement. The interest in each claim purchased by Pegasus consists of the right to receive, from such claimant, part of the proceeds or recoveries which such claimant receives by reason of a settlement, judgment or award with respect to such claimant’s claim. Effective January 2017, Simia will commence funding personal injury settlement claims while Pegasus will not fund any new advances, and will remain in operation to liquidate its current portfolio of advances.

• Structured settlements  – CBC purchases periodic structured settlements and annuity policies from individuals in exchange for a lump sum payment.

• Social Security benefit advocacy – GAR Disability Advocates is a non-attorney advocacy group which represents individuals nationwide in their claims for social security disability and supplemental security income benefits from the Social Security Administration.

Certain non-allocated administrative costs, interest income, interest expense and various other non-operating income and expenses are reflected in Corporate. Corporate assets include cash and cash equivalents, available-for-sale securities, property and equipment, goodwill, deferred taxes and other assets.

The following table shows results by reporting segment for the

three

month periods ended

December

31,

2016

and

2015.

(Dollars in millions)	Consumer Receivables		Personal Injury Claims		Structured Settlements		Social Security Benefit Advocacy			Corporate			Total Company
Three Months Ended December 31,
2016:
Total Revenues	$	3.3	$	2.3	$	3.5	$	1.4		$	—		$	10.5
Other income		—		—		—		—			0.4			0.4
Income (loss) before income tax		2.7		—		1.0		(0.9	)		(3.8	)		(1.0	)
Total Assets(1)		17.4		49.0		89.2		1.5			101.8			258.9
2015:
Total Revenues		5.1		3.1		2.9		0.7			—			11.8
Other income		—		—		—		—			0.5			0.5
Income (loss) before income tax		3.9		1.9		0.8		(1.8	)		(1.4	)		3.4
Total Assets(1)		17.9		35.2		73.9		2.4			106.6			236.0

The Company does

not

have any intersegment revenue transactions and has reallocated expenses between segments.

(1)  Includes other amounts in other line items on the consolidated balance sheet.