Discontinued Operations

3 Months Ended

Dec. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

NOTE 2: DISCONTINUED OPERATIONS AND RESTRUCTURING

Discontinued Operations

During the fourth quarter of fiscal 2014, as part of our new strategy to concentrate on an integrated, customer-centric financial services model that is focused on our core businesses of pawn and unsecured lending, we implemented a plan to exit our online lending businesses in the United States and the United Kingdom. As a result of this plan, our online lending operations in the United States (EZOnline) and in the United Kingdom (Cash Genie) have been included as discontinued operations.

During the third quarter of fiscal 2013, we implemented a plan to close 107 legacy stores in a variety of locations. These stores were generally older, smaller stores that did not fit our future growth profile.

As of December 31, 2014 and 2013, accrued lease termination costs, severance costs and other costs related to discontinued operations were $7.8 million and $3.8 million, respectively. These amounts are included under "Accounts payable and other accrued expenses" in our condensed consolidated balance sheets. During the quarters ended December 31, 2014 and 2013, $0.7 million and $1.7 million, respectively, in cash payments were made with respect to the recorded lease termination costs, severance costs and other costs related to discontinued operations. During the quarter ended December 31, 2014, the balance of accrued lease termination costs, severance costs and others related to discontinued operations was adjusted by $0.4 million due to foreign currency effects and other individually immaterial adjustments.

Discontinued operations in the quarters ended December 31, 2014 and 2013 include $1.3 million and $8.9 million of total revenues, respectively.

The table below summarizes the income (loss) from discontinued operations by operating segment:

	Three Months Ended December 31,
	2014			2013
	(in thousands)
U.S. & Canada:
Net revenues	$	1,006		$	1,615
Expenses	77			4,402
Operating income (loss) from discontinued operations before taxes	929			(2,787		)
Total termination benefits related to the reorganization	(1,093		)	(640		)
Income (loss) from discontinued operations before taxes	2,022			(2,147		)
Income tax (provision) benefit	(224		)	111
Income (loss) from discontinued operations, net of tax	$	1,798		$	(2,036	)
Latin America:
Net revenues	$	—		$	(335	)
Expenses	—			390
Operating loss from discontinued operations before taxes	—			(725		)
Total termination benefits related to the reorganization	—			(1,917		)
Income from discontinued operations before taxes	—			1,192
Income tax provision	—			(359		)
Income from discontinued operations, net of tax	$	—		$	833
Other International:
Net revenues	$	266		$	2,034
Expenses	1,738			4,402
Operating loss from discontinued operations before taxes	(1,472		)	(2,368		)
Total termination costs related to the reorganization	(717		)	—
Loss from discontinued operations before taxes	(755		)	(2,368		)
Income tax benefit	—			77
Loss from discontinued operations, net of tax	$	(755	)	$	(2,291	)
Consolidated:
Net revenues	$	1,272		$	3,314
Expenses	1,815			9,194
Operating loss from discontinued operations before taxes	(543		)	(5,880		)
Total termination benefits related to the reorganization	(1,810		)	(2,557		)
Income (loss) from discontinued operations before taxes	1,267			(3,323		)
Income tax provision	(224		)	(171		)
Income (loss) from discontinued operations, net of tax	$	1,043		$	(3,494	)

All revenue, expense and income reported in these condensed consolidated financial statements have been adjusted to reflect reclassification of all discontinued operations.

Restructuring

During the fourth quarter of fiscal 2014, we conducted a company-wide operational review to realign our organization to streamline operations and create synergies and efficiencies. The operational review resulted in the reduction of non-customer-facing overhead. Changes in the balance of restructuring costs during the quarter ended December 31, 2014 resulting from this initiative are summarized as follows:

	Three Months Ended December 31, 2014
	(in thousands)
Balance as of September 30, 2014	$	6,121
Charged to expense	22
Cash payments	(2,285		)
Balance as of December 31, 2014	$	3,858

The accrual for restructuring costs as of December 31, 2014 represents the amounts to be paid related to severance for employees that have been terminated or identified for termination as a result of the initiatives described above. We estimate we will make the remaining payments during fiscal 2015, at which time this initiative will be substantially complete. We continue to review the impact of these actions and will determine if, based on future operating results, additional actions to reduce operating expenses are necessary. The amount of any potential future charges for such actions will depend upon the nature, timing and extent of those actions.