Strategic Investments

3 Months Ended

Dec. 31, 2018

Equity Method Investments and Joint Ventures [Abstract]

NOTE 4: STRATEGIC INVESTMENTS

As of December 31, 2018, we owned 214,183,714 shares, or approximately 34.75%, of Cash Converters International Limited ("Cash Converters International"). The following tables present summary financial information for Cash Converters International’s most recently reported results after translation to U.S. dollars:



	June 30,
	2018		2017

	(in thousands)
Current assets	$	229,105	$	155,749
Non-current assets	148,195		150,843
Total assets	$	377,300	$	306,592

Current liabilities	$	122,924	$	57,387
Non-current liabilities	15,449		48,698
Shareholders’ equity	238,927		200,507
Total liabilities and shareholders’ equity	$	377,300	$	306,592



	Fiscal Year Ended June 30,
	2018		2017

	(in thousands)
Gross revenues	$	201,800	$	204,509
Gross profit	128,366		130,943
Net profit	17,443		15,546

During the first quarter of fiscal 2019, the fair value of our investment in Cash Converters International, as estimated by reference to its quoted market price per share, declined from its value at September 30, 2018 and ended the quarter below its carrying value. As of December 31, 2018, we determined that our investment was impaired and that such impairment was other-than-temporary. In reaching this conclusion, we considered all available evidence, including evidence in existence as of September 30, 2018 as discussed in Note 4 of Notes to Consolidated Financial Statements included in "Part II, Item 8 — Financial Statements and Supplementary Data" of our Annual Report on Form 10-K for the year ended September 30, 2018. Additionally, we noted the following developments subsequent to September 30, 2018: (i) continued decline in Cash Converters International's share price; and (ii) ongoing uncertainty around remaining Queensland class action lawsuit. As a result, we recognized an other-than-temporary impairment in Cash Converters International of $13.3 million ($10.3 million, net of taxes).

The above impairment increased the difference between the amount at which our investment was carried and the amount of underlying equity in net assets of Cash Converters International and was recorded under “Impairment of investment in unconsolidated affiliate” in our condensed consolidated statements of operations in the “Other International” segment. We will continue to monitor the fair value of our investment in Cash Converters International for other-than-temporary impairments in future reporting periods and may record additional impairment charges should the fair value of our investment in Cash Converters International further decline below its carrying value for an extended period of time. See Note 5 for the fair value and carrying value of our investment in Cash Converters International.