Cash America 2015 Annual Report Download - page 59

The table below summarizes the age of merchandise held for disposition related to the Company’s domestic
pawnlendingoperationsasofDecember31,2014and2013,respectively(dollarsinthousands):
As of December 31,
2014 2013 (a)
Domestic pawn operations Amount % Amount %
Jewelry – held for one year or less $111,963 52.0%$ 115,187 56.3%
Other merchandise – held for one year or less 90,642 42.1%76,014 37.1%
Total merchandise held for one year or less 202,605 94.1%191,201 93.4%
Jewelry – held for more than one year 3,494 1.6%6,586 3.2%
Other merchandise – held for more than one year 9,150 4.3%6,876 3.4%
Total merchandise held for more than one year 12,644 5.9%13,462 6.6%
Merchandise held for disposition, gross $215,249 100.0%$ 204,663 100.0%
Less: Inventory valuation allowance $(2,400)$ (840)
Merchandise held for disposition, net of allowance $212,849 $ 203,823
(a) Excludes amounts related to the Company’s Mexico-based pawn operations, which were sold in August 2014. As of December 31, 2013,
Mexico-based pawn operations had merchandise held for disposition, gross of $5,185, inventory valuation allowance of $109, and
merchandise held for disposition, net of allowance of $5,076.
Merchandiseheldfordisposition,netofallowance,increased$9.0million,or4.4%,asofDecember31,
2014comparedtoDecember31,2013,primarilyduetoanincreaseingeneralmerchandiselevels.The allowance
formerchandiseheldfordispositionincreasedby$1.6millionfromDecember31,2013toDecember31,2014,
primarily due to increased inventory levels, as well as the Company’s historical experience of inventory losses due
to damage, theft or obsolescence.
Consumer Loan Activities
Consumer Loan Fees, Net of Loss Provision
The following table sets forth interest and fees on consumer loans, the consumer loan loss provision, and
consumerloansfees,netofthelossprovision,fortheyearsendedDecember31,2014and2013(dollarsin
thousands):
YearEndedDecember31,
2014 2013
Short-term
loans
Installment
loans Total
Short-term
loans
Installment
loans Total
Consumer loan fees $83,909 $13,765 $97,674 $100,146 $13,065 $113,211
Less: consumer loan loss provision 23,269 7,740 31,009 27,513 5,846 33,359
Consumer loan fees, net loss provision $60,640 $6,025 $66,665 $72,633 $7,219 $79,852
Year-over-year change—$ $(11,993)$
(1,194)$ (13,187)$(12,056)$ (759)$
(12,815)
Year-over-year change—% (16.5)% (16.5)% (16.5)% (14.2)% (9.5)% (13.8)%
Consumer loan loss provision as a %
of consumer loan fees 27.7 %56.2 %31.7 %27.5 %44.7 %29.5 %
Consumer loan fees, net of loss provision, decreased $13.2 million, or 16.5%, in 2014 compared to 2013,
primarily due to a $15.5 million, or 13.7%, decrease in consumer loan fees. The decrease in consumer loan fees was
primarily due to the closure and sale of certain store locations and the Company’s strategic decision to deemphasize
and eliminate its short-term consumer lending activities in many of its locations, resulting in the elimination of the
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