Cash America 2015 Annual Report Download - page 62

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The allowance and liability for losses as a percentage of consumer loan balances, gross, increased to 8.9%
as of December 31, 2014, compared to 7.7% as of December 31, 2013. This increase was primarily due to a higher
percentage of unsecured installment loans to total installment loans in 2014 as compared to 2013, primarily due to
the discontinuation during 2014 of one of the Company’s installment loan products secured by a customer’s vehicle.
In addition, installment loans, in comparison to short-term loans, had a higher allowance and liability for losses as a
percentage of combined ending gross consumer loan balance due to the less mature nature of the installment loan
portfolio.
The decrease in the average amount outstanding per installment loan in 2014 compared to 2013 was
primarily due to the discontinuation during 2014 of one of the Company’s installment loan products secured by a
customer’s vehicle that typically carried higher average balances than other loans in the installment loan portfolio.
Operations and Administration Expenses
The table below shows additional detail of the operations and administration expenses for the Company for
theyearsendedDecember31,2014and2013(dollarsinthousands):
Year Ended December 31,
2014 2013
Operations Administration Total Operations Administration Total
Personnel $225,796 $71,384 $297,180 $202,383 $60,437 $262,820
Occupancy 123,008 3,889 126,897 113,730 4,394 118,124
Other 42,825 23,563 66,388 63,307 24,967 88,274
Total $391,629 $98,836 $490,465 $379,420 $89,798 $469,218
Consolidated operations and administration expenses increased $21.2 million, or 4.5%, to $490.5 million in
2014 compared to 2013. Severance and other employee-related expenses related to the Reorganization increased
operations and administration expenses in 2014, and the beneficial impact of the cost reductions was not fully
realized in 2014. The increase in consolidated operations and administration expenses was partially offset by a $4.4
million decrease due to the sale of the Company’s Mexico-based operations in August 2014.
Personnel expenses increased $34.4 million in 2014 compared to 2013, primarily due to severance costs
and other employee-related expenses related to the Reorganization, the addition of retail services locations through
acquisitions made in 2013, normal merit increases, incentives and increased health insurance costs.
Occupancy expenses increased $8.8 million in 2014 compared to 2013 primarily due to acquisitions made
in 2013 and normal rent increases. In addition, occupancy expenses in 2013 also included $1.4 million of expenses
for the Texas Consumer Loan Store Closures.
Other expenses decreased $22.0 million in 2014 compared to 2013 primarily due to an $18.0 million charge
incurred in 2013 for the 2013 Litigation Settlement, a $2.5 million expense incurred in 2013 for the Regulatory
Penalty, and decreased marketing expenses in 2014 compared to 2013, which were partially offset by a $5.0 million
benefit recognized in 2013 for the Ohio Adjustment for the Ohio Reimbursement Program.
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