Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information

Segment Information

Note 26.  Segment Information

See Note 1 for a description of our business segments.

We evaluate the performance of the segments based on pretax operating earnings. The accounting policies of the segments are the same as those disclosed in Note 3, except we exclude realized gains and losses from segment investment revenues.

We report our segment totals using the historical basis of accounting because management analyzes each business segment on a historical basis. However, in order to reconcile to total consolidated financial statement amounts we are presenting our segment totals at or for the one month ended December 31, 2010 and for the eleven months ended November 30, 2010.

The following tables display information about the Company’s segments as well as reconciliations to the consolidated financial statement amounts.

	Branch			Centralized Real Estate			Insurance			All						Push-down Accounting			Consolidated
(dollars in thousands)	Segment			Segment			Segment			Other			Adjustments			Adjustments			Total
Successor Company
At or for the Year Ended December 31, 2011
Revenues:
External:
Finance charges	$	1,284,093		$	326,071		$	—		$	13,893		$	—		$	261,490		$	1,885,547
Insurance	324			—			120,135			108			—			(377		)	120,190
Other	(20,340		)	(18,622		)	54,092			(22,059		)	(4,617		)	29,515			17,969
Intercompany	66,564			(437		)	(47,838		)	(18,289		)	—			—			—
Interest expense	497,658			266,990			—			164,377			—			339,022			1,268,047
Operating expenses	566,085			58,858			21,832			23,409			—			34,718			704,902
Provision for finance receivable losses	152,193			103,391			—			(2,023		)	—			79,287			332,848
Pretax income (loss)	114,705			(122,227		)	59,552			(211,464		)	(4,617		)	(159,154		)	(323,205		)
Assets	9,185,012			4,761,876			1,217,293			1,179,183			871			(849,347		)	15,494,888
Successor Company
At or for the One Month Ended December 31, 2010
Revenues:
External:
Finance charges	$	113,257		$	30,219		$	—		$	1,190		$	—		$	36,663		$	181,329
Insurance	31			—			11,280			7			—			(49		)	11,269
Other	1,166			(441		)	4,845			5,518			(1,419		)	10,874			20,543
Intercompany	5,704			99			(4,485		)	(1,318		)	—			—			—
Interest expense	48,340			26,422			—			15,122			—			28,809			118,693
Operating expenses	46,657			2,942			1,787			3,182			—			2,823			57,391
Provision for finance receivable losses	55,969			(15,560		)	—			(154		)	—			(1,488		)	38,767
Bargain purchase gain	—			—			—			—			—			1,469,182			1,469,182
Pretax (loss) income	(30,808		)	16,073			5,118			(12,708		)	(1,419		)	1,486,631			1,462,887
Assets	9,908,100			5,520,569			876,639			2,706,411			1,440			(752,209		)	18,260,950
Predecessor Company
At or for the Eleven Months Ended November 30, 2010
Revenues:
External:
Finance charges	$	1,317,057		$	338,356		$	—		$	12,889		$	—		$	—		$	1,668,302
Insurance	368			—			113,131			105			—			—			113,604
Other	(15,583		)	27,502			51,821			78,122			(10,626		)	—			131,236
Intercompany	59,357			988			(45,040		)	(15,305		)	—			—			—
Interest expense	539,053			299,411			—			158,005			—			—			996,469
Operating expenses	593,203			76,155			19,900			4,218			—			—			693,476
Provision for finance receivable losses	231,774			212,015			—			560			—			—			444,349
Pretax (loss) income	(2,831		)	(220,735		)	54,941			(85,477		)	(10,626		)	—			(264,728		)
Assets	N/A		*	N/A			N/A			N/A			N/A			—			N/A

*      Not applicable. The Consolidated Balance Sheets in Item 8 are presented at December 31, 2011 and 2010; therefore, balance sheet information at November 30, 2010 is not applicable.

	Branch			Centralized Real Estate			Insurance			All						Consolidated
(dollars in thousands)	Segment			Segment			Segment			Other			Adjustments			Total
Predecessor Company
At or for the Year Ended December 31, 2009
Revenues:
External:
Finance charges	$	1,755,350		$	440,231		$	—		$	9,992		$	—		$	2,205,573
Insurance	481			—			136,415			51			—			136,947
Other	(32,994		)	(78,590		)	58,705			(22,161		)	(6,526		)	(81,566		)
Intercompany	67,773			2,196			(54,301		)	(15,668		)	—			—
Interest expense	590,828			340,040			—			160,295			—			1,091,163
Operating expenses	654,259			61,193			21,086			5,487			—			742,025
Provision for finance receivable losses	904,199			368,139			—			3,208			—			1,275,546
Pretax (loss) income	(358,676		)	(405,535		)	55,720			(194,173		)	(6,526		)	(909,190		)
Assets	11,605,989			6,463,774			937,684			3,764,975			14,964			22,787,386

The “All Other” column includes:

·corporate revenues and expenses such as management and administrative revenues and expenses, interest expense on debt not allocated to the business segments, and derivatives adjustments and foreign exchange gain or loss on foreign currency denominated debt that are not considered pertinent in determining segment performance;

·revenues, expenses, and assets from our foreign subsidiary, Ocean; and

·corporate assets which include cash, derivatives, prepaid expenses, deferred charges, and fixed assets.

The “Adjustments” column includes:

·realized gains (losses) on investment securities and commercial mortgage loans; and

·other assets that are not considered pertinent to determining performance.

The push-down accounting adjustments column includes the accretion or amortization of the valuation adjustments on the applicable revalued assets and liabilities resulting from the FCFI Transaction.