NOTE 9: SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION AND DISCONTINUED OPERATIONS

Supplemental Consolidated Financial Information

The following table provides supplemental information on net amounts included in our condensed consolidated balance sheets:



	June 30, 2017			June 30, 2016			September 30, 2016

	(in thousands)
Gross pawn service charges receivable	$	41,533		$	39,688		$	41,458
Allowance for uncollectible pawn service charges receivable	(10,948		)	(10,045		)	(10,396		)
Pawn service charges receivable, net	$	30,585		$	29,643		$	31,062

Gross inventory	$	141,510		$	135,807		$	146,367
Inventory reserves	(6,457		)	(5,439		)	(6,143		)
Inventory, net	$	135,053		$	130,368		$	140,224

Property and equipment, gross	$	215,823		$	210,005		$	210,309
Accumulated depreciation	(162,801		)	(148,804		)	(151,854		)
Property and equipment, net	$	53,022		$	61,201		$	58,455

Discontinued Operations

In September 2016 we completed the previously announced sale of all of our interests in Grupo Finmart to AlphaCredit. The information presented below includes the assets, liabilities, revenues and expenses of variable interest entities which were deconsolidated as a result of the sale of Grupo Finmart.

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 condensed consolidated statements of operations:



	Three Months Ended June 30, 2016			Nine Months Ended June 30, 2016

	(in thousands)
Revenues	$	11,761		$	36,345
Consumer loan bad debt	(6,201		)	(26,444		)
Operations expense	(9,489		)	(100,347		)
Interest expense, net	(3,943		)	(13,255		)
Depreciation, amortization and other expenses	(4,597		)	(6,234		)
Loss from discontinued operations before income taxes of Grupo Finmart	(12,469		)	(109,935		)
Income tax benefit	2,746			11,609
Income (loss) from discontinued operations, net of tax of operations discontinued prior to the adoption of ASU 2014-08*	590			(742		)
Loss from discontinued operations, net of tax	$	(9,133	)	$	(99,068	)

Loss from discontinued operations, net of tax of Grupo Finmart	$	(9,723	)	$	(98,326	)
Loss from discontinued operations, net of tax of Grupo Finmart attributable to noncontrolling interest	540			6,140
Loss from discontinued operations, net of tax of Grupo Finmart attributable to EZCORP, Inc.	$	(9,183	)	$	(92,186	)


*	Includes revenues of $2.1 million for the three and nine months ended June 30, 2016.

Cash flows from Grupo Finmart operating and investing activities for the three months ended June 30, 2016 were $2.3 million and $4.4 million, respectively, and $9.4 million and $4.6 million, respectively for the nine months ended June 30, 2016, with immaterial cash flows from Grupo Finmart operating and investing activities for the three and nine months ended June 30, 2017.

The following table presents the reconciliation of the carrying amounts of major classes of assets and liabilities, net of intercompany liabilities, of Grupo Finmart that are classified as held for sale presented in the condensed consolidated balance sheets as of June 30, 2016, in thousands:



Cash and cash equivalents	$	1,728
Consumer loans and non-current consumer loans, net	71,409
Consumer loan fees and interest receivable, net	11,390
Goodwill, intangible assets and property and equipment, net	10,285
Prepaid expenses, other current assets, deferred tax assets and other assets, net	62,742
Total assets classified as held for sale	$	157,554

Current maturities of long-term debt	$	80,248
Accounts payable, accrued expenses and other current liabilities	13,732
Long-term debt, less current maturities, net and other long-term liabilities	36,281
Total liabilities classified as held for sale	$	130,261