NOTE 16: SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION

Supplemental Consolidated Statements of Financial Position Information:

The following table provides information on net amounts included in pawn service charges receivable, consumer loan fees, inventories and property and equipment:



	December 31,						September 30,
	2013			2012			2013
	(in thousands)
Pawn service charges receivable:
Gross pawn service charges receivable	$	38,571		$	40,220		$	40,336
Allowance for uncollectible pawn service charges receivable	(7,729		)	(9,143		)	(9,974		)
Pawn service charges receivable, net	$	30,842		$	31,077		$	30,362
Consumer loan fees receivable:
Gross consumer loan fees receivable	$	43,215		$	38,151		$	38,355
Allowance for uncollectible consumer loan fees receivable	(3,034		)	(4,078		)	(1,767		)
Consumer loan fees receivable, net	$	40,181		$	34,073		$	36,588
Inventory:
Inventory, gross	$	147,975		$	126,458		$	149,446
Inventory reserves	(5,264		)	(6,187		)	(4,246		)
Inventory, net	$	142,711		$	120,271		$	145,200
Property and equipment:
Property and equipment, gross	$	225,634		$	273,271		$	291,245
Accumulated depreciation	(111,095		)	(159,189		)	(174,964		)
Property and equipment, net	$	114,539		$	114,082		$	116,281

Property and equipment at December 31, 2013, December 31, 2012 and September 30, 2013 includes $1.6 million, $1.4 million and $1.6 million, respectively, of equipment leased under a capital lease. Amortization of equipment under capital leases is included with depreciation expense and was $0.1 million for the three-month period ended December 31, 2013 and $0.2 million for the three-month period ended December 31, 2012. Future minimum lease payments related to capital leases are $0.6 million and $0.2 million due within one and two years respectively for a total of $0.8 million; of this amount, $0.1 million represents interest. The present value of net minimum lease payments as of December 31, 2013 was $0.8 million.

During the first quarter ended December 31, 2013, we sold seven U.S. pawn stores (three in Louisiana, two in Mississippi, one in Alabama and one in Florida) for $11.0 million, of which $10.0 million was paid in cash and $1.0 million with a 14% promissory note due on December 31, 2018. The carrying value of the stores' net assets amounted to $3.7 million, primarily consisting of $1.5 million of pawn loans, $1.9 million of inventory, and $0.4 million of pawn service charge receivable, offset by $0.1 million of assumed liabilities. As a result of this transaction, we realized a gain of $6.3 million, which is included under the (gain) loss on sale or disposal of assets in the condensed consolidated statements of operations. In addition, we recorded a deferred gain of $0.7 million, which is included under deferred gains and other long-term liabilities in the condensed consolidated balance sheet. This gain will be recognized upon repayment of the promissory note.

Other Supplemental Information:

We issue letters of credit (LOC) to enhance the creditworthiness of our customers seeking unsecured loans from unaffiliated lenders. The letters of credit assure the lenders that if borrower default on the loans, we will pay the lenders, upon demand, the principal and accrued interest owed to the lenders by the borrowers plus any insufficient funds fees. Our current carrying value of expected losses and maximum exposure for losses on letters of credit, if all brokered loans defaulted and none was collected, is summarized below.



	December 31,				September 30,
	2013		2012		2013
	(in thousands)
Consumer loans:
Expected LOC losses	$	3,041	$	2,363	$	2,623
Maximum exposure for LOC losses	$	35,592	$	33,089	$	33,380
Exposure secured by titles to customers’ automobiles	$	9,947	$	8,960	$	9,893