Discontinued Operations and Restructuring (Tables)

12 Months Ended

Sep. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

Schedule of discontinued operations

The following table summarizes the pre-tax charges (gains) pertaining to the above discontinued operations:

	Fiscal Year Ended September 30,
	2015		2014
	(in thousands)
Goodwill impairment	$	10,550	$	84,158
Long-lived assets impairment	1,685		11,795
Other (a)	21,045		7,590
Asset disposals	7,443		2,882
Lease termination costs	1,720		1,504
Reversal of contingent consideration payable	—		(4,792		)
	$	42,443	$	103,137

(a) Includes estimated costs related to regulatory compliance, employee severance and accelerated amortization of prepaid expenses and other assets. The amount shown for fiscal 2015 includes a $10.5 million one-time charge associated with the settlement of outstanding issues with the U.S. Consumer Financial Protection Bureau and a $4.0 million charge related to the resolution of regulatory compliance issues in our Cash Genie U.K online lending business, which is a part of fiscal 2014 discontinued operations.

The following table presents the reconciliation of the major line items constituting "Loss from discontinued operations, net of tax" of Grupo Finmart and other operations discontinued prior to the adoption of ASU 2014-08 that are presented in the consolidated statements of operations:

	Fiscal Year Ended September 30,
	2016			2015			2014
	(in thousands)
Revenues	$	45,256		$	68,369		$	54,522
Consumer loan bad debt	(30,081		)	(26,446		)	(19,605		)
Operations expense	(38,740		)	(32,664		)	(32,184		)
Impairment of goodwill	(73,244		)	—			—
Interest expense, net	(16,464		)	(24,487		)	(19,479		)
Depreciation, amortization and other	(12,732		)	(7,008		)	(2,382		)
Gain on disposition	34,237			—			—
Loss from discontinued operations before income taxes of Grupo Finmart	(91,768		)	(22,236		)	(19,128		)
Income tax benefit	12,896			7,508			7,741
Loss from discontinued operations, net of tax of operations discontinued prior to the adoption of ASU 2014-08	(560		)	(27,317		)	(66,087		)
Loss from discontinued operations, net of tax	$	(79,432	)	$	(42,045	)	$	(77,474	)
Loss from discontinued operations, net of tax of Grupo Finmart	$	(78,872	)	$	(14,728	)	$	(11,387	)
Loss from discontinued operations, net of tax of Grupo Finmart attributable to noncontrolling interest	6,661			4,150			5,281
Loss from discontinued operations, net of tax of Grupo Finmart attributable to EZCORP, Inc.	$	(72,211	)	$	(10,578	)	$	(6,106	)

Cash flows from Grupo Finmart operating activities for the years ended September 30, 2016, 2015 and 2014 were $2.2 million, $11.1 million and $(7.4) million, respectively. Cash flows from Grupo Finmart investing activities for the years ended September 30, 2016, 2015 and 2014 were $42.7 million, $(41.1) million and $(33.5) million, respectively.

The following table presents the reconciliation of the carrying amounts of major classes of assets and liabilities of Grupo Finmart that are classified as held for sale presented in the consolidated balance sheet as of September 30, 2015:

	September 30, 2015
	(in thousands)
Cash and cash equivalents	$	2,880
Restricted cash (1) (3)	14,993
Consumer loans, net (1) (3)	31,824
Consumer loan fees and interest receivable, net (1) (3)	19,105
Prepaid expenses, income taxes and other current assets	4,047
Restricted cash, non-current (3)	2,883
Goodwill, intangible assets, and property and equipment, net	91,272
Non-current consumer loans, net (1) (3)	75,824
Deferred tax and other assets, net	47,254
Total assets classified as held for sale	$	290,082
Current maturities of long-term debt (2)	$	74,345
Accounts payable, accrued expenses and other current liabilities (2)	12,984
Long-term debt, less current maturities, net and other long-term liabilities (2) (4)	101,644
Total liabilities classified as held for sale	$	188,973

(1)    These amounts include the following assets of our previously consolidated VIEs:

	September 30, 2015
	(in thousands)
Restricted cash	$	1,361
Consumer loans, net	5,846
Consumer loan fees and interest receivable, net	6,399
Non-current consumer loans, net	27,162
Total assets of consolidated VIEs	$	40,768

(2)    These amounts include the following liabilities of our previously consolidated VIEs:

	September 30, 2015
	(in thousands)
Current maturities of long-term debt	$	42,017
Accounts payable, accrued expenses and other current liabilities	4,313
Long-term debt, less current maturities	31,247
Total liabilities of consolidated VIEs	$	77,577

(3)    These amounts include the following assets of Grupo Finmart's securitization trust that can only be used to settle its liabilities:

	September 30, 2015
	(in thousands)
Restricted cash	$	12,033
Consumer loans*	36,845
Consumer loan fees and interest receivable, net	6,067
Restricted cash, non-current	197
Total assets of Grupo Finmart's securitization trust	$	55,142

* These amounts include the current and non-current portions of active consumer loans considered to be performing under the terms of the Grupo Finmart securitization trust. These balances, which represent the total collateral that can be used to settle the liabilities of the securitization trust, exclude loan loss allowances as described in Note 19, and are presented on a net basis in the consolidated balance sheets including allowances.

(4)    This amount includes the following liabilities for which the creditors of Grupo Finmart's securitization trust do not have recourse to the general credit of EZCORP, Inc.:

	September 30, 2015
	(in thousands)
Long-term debt, less current maturities	$	40,493

The amount of gain recorded, in thousands, as a result of the disposition of Grupo Finmart was calculated under FASB ASC 810-10-40-5 as follows:

Fair value of consideration received	$	123,949
Carrying amount of noncontrolling interest in Grupo Finmart at the date of deconsolidation	(3,014		)
Carrying amount of Grupo Finmart’s assets and liabilities at the date of deconsolidation	(61,525		)
Accumulated other comprehensive loss reclassified into income	(25,173		)
	$	34,237

Restructuring and related costs

Changes in the balance of these restructuring costs are summarized as follows:

	Fiscal Year Ended September 30,
	2016			2015
	(in thousands)
Beginning balance	$	2,901		$	6,121
Charged to expense	—			763
Cash payments	(2,901		)	(3,983		)
Ending balance	$	—		$	2,901

he following table summarizes the pre-tax charges, inclusive of the charges presented in the changes in the balance of restructuring costs rollforward below, which have been recorded under “Restructuring” expense in our consolidated statements of operations:

	Fiscal Year Ended September 30,
	2016		2015
	(in thousands)
Long-lived assets impairment	$	—	$	2,346
Other (a)	779		3,447
Asset disposals	323		3,650
Lease termination costs	819		7,637
	$	1,921	$	17,080

(a) Includes costs related to employee severance and other.

Schedule of restructuring reserve

Changes in the balance of these restructuring costs are summarized as follows:

	Fiscal Year Ended September 30,
	2016			2015
	(in thousands)
Beginning balance	$	8,076		$	—
Charged to expense	1,594			9,469
Cash payments	(5,577		)	(1,393		)
Other (a)	1,024			—
Ending balance (b)	$	5,117		$	8,076

(a) Includes other individually immaterial adjustments as well as adjustments to our estimate of lease termination costs.

(b) Ending balance as of September 30, 2016 is comprised of accrued lease termination costs that we expect to be partially offset by future sublease payments through 2029. We consider future changes in this accrual to be attributable to continuing operations.