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 and interest receivable, inventory and property and equipment:



	June 30,						September 30,
	2014			2013			2013
	(in thousands)
Pawn service charges receivable:
Gross pawn service charges receivable	$	39,287		$	38,681		$	40,336
Allowance for uncollectible pawn service charges receivable	(9,980		)	(10,091		)	(9,974		)
Pawn service charges receivable, net	$	29,307		$	28,590		$	30,362
Consumer loan fees and interest receivable:
Gross consumer loan fees and interest receivable	$	43,548		$	36,866		$	38,059
Allowance for uncollectible consumer loan fees and interest receivable	(5,197		)	(1,551		)	(1,767		)
Consumer loan fees and interest receivable, net	$	38,351		$	35,315		$	36,292
Inventory:
Inventory, gross	$	138,948		$	128,270		$	149,446
Inventory reserves	(6,927		)	(5,767		)	(4,246		)
Inventory, net	$	132,021		$	122,503		$	145,200
Property and equipment:
Property and equipment, gross	$	234,824		$	280,169		$	291,245
Accumulated depreciation	(125,366		)	(169,857		)	(174,964		)
Property and equipment, net	$	109,458		$	110,312		$	116,281

Property and equipment at June 30, 2014, June 30, 2013 and September 30, 2013 includes $1.6 million 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 June 30, 2014, $0.3 million for the nine-month period ended June 30, 2014, $0.1 million for the three-month period ended June 30, 2013, and $0.4 million for the nine-month period ended June 30, 2013. Future minimum lease payments related to capital leases total $0.5 million and are due within one year. Of this amount, a nominal portion represents interest. The present value of net minimum lease payments as of June 30, 2014 was $0.4 million.

The following table provides information on amounts included in prepaid expenses and other assets and other current liabilities:



	June 30,				September 30,
	2014		2013		2013
	(in thousands)
Prepaid expenses and other assets:
Convertible Notes and Warrants receivable [1]	$	33,298	$	—	$	—
Sale of long-term consumer loans receivable [2]	38,269		—		—
Other	41,891		37,377		34,217
Total prepaid expenses and other assets	$	113,458	$	37,377	$	34,217

Other current liabilities:
Deferred consideration [3]	$	8,716	$	11,827	$	11,524
Other	—		10,813		10,813
Total other current liabilities	$	8,716	$	22,640	$	22,337

[1] For additional information, see Note 7.

[2] For additional information, see Note 13.

[3] For additional information, see Note 3.

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. In the first quarter ended December 31, 2013 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 statement of operations. In addition, we recorded a deferred gain of $0.7 million. In the second quarter ended March 31, 2014, we settled the promissory note for $0.9 million and realized the net deferred gain of $0.6 million which is included in our condensed consolidated statement of operations for the nine-month period ended June 30, 2014.

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.



	June 30,				September 30,
	2014		2013		2013
	(in thousands)
Consumer loans:
Expected LOC losses	$	3,069	$	2,196	$	2,623
Maximum exposure for LOC losses	$	29,430	$	28,797	$	33,380
Exposure secured by titles to customers’ automobiles	$	7,458	$	8,035	$	9,893