Cash America 2010 Annual Report Download - page 73

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44
The following table sets forth consumer loan fees by channel and segment, adjusted for the deduction of the
loan loss provision for the years ended December 31, 2010 and 2009 (dollars in thousands):
Year Ended December 31,
2010 2009
Retail
Services
Segment
Online
Lending MLOC
Total E-
Commerce
Segment
Total
Company
Retail
Services
Segment
Online
Lending MLOC
Total E-
Commerce
Segment
Total
Company
Consumer loan fees $ 113,973 $ 349,336 $ 27,643 $ 376,979 $ 490,952 $ 117,997 $ 241,268 $ 12,591 $ 253,859 $ 371,856
Loan loss provision 17,437 151,716 13,241 164,957 182,394 21,642 104,454 4,720 109,174 130,816
Loss adjusted consumer
loan fees $ 96,536 $ 197,620 $ 14,402 $ 212,022 $ 308,558 $ 96,355 $ 136,814 $ 7,871 $ 144,685 $ 241,040
Year over year change - $ $ 181 $ 60,806 $ 6,531 $ 67,337 $ 67,518 $ (11,226) $ 21,684 $ 6,702 $ 28,386 $ 17,160
Year over year change - % 0.2% 44.4% 83.0% 46.5% 28.0% (10.4)% 18.8% 573.3% 24.4% 7.7%
Loan loss provision as %
of consumer loan fees 15.3% 43.4% 47.9% 43.8% 37.2% 18.3% 43.3% 37.5% 43.0% 35.2%
Combined consumer loans. In addition to reporting financial results in accordance with GAAP, the Company
has provided combined consumer loan balances and combined consumer loans written, which are non-GAAP
measures that include (i) Company-owned consumer loans, which are GAAP measures that consist of consumer loans
written by the Company and the Company's participation interests in consumer loans written by a third-party lender’s
MLOC product, and (ii) consumer loans guaranteed by the Company, which are GAAP measures that consist of
consumer loans written by third-party lenders through the CSO program that the Company guarantees. Management
believes these measures are useful in evaluating the consumer loan portfolio on an aggregate basis, including its
evaluation of the loss provision for the Company-owned portfolio and third-party lender-owned portfolios that the
Company guarantees. The Company also provides allowances and accruals for losses on consumer loans on a
combined basis, which are GAAP measures.
Consumer loan balances. The outstanding combined portfolio balance of consumer loans, net of allowances
and accruals for losses, increased $29.6 million, or 19.0%, to $185.3 million at December 31, 2010 from $155.7
million at December 31, 2009, primarily due to increased demand for consumer loan products in the e-commerce
segment. The Company has experienced growth in consumer loan balances from the foreign e-commerce business in
recent years and expects that foreign consumer loan balances will continue to comprise a greater percentage of the e-
commerce segment’s total consumer loan balances in the future. The combined loan balance includes $178.3 million
and $136.1 million at December 31, 2010 and 2009 of Company-owned consumer loan balances, respectively, before
the allowance for losses of $38.9 million and $27.3 million, respectively, which has been provided in the consolidated
financial statements for December 31, 2010 and 2009, respectively. The combined loan balance also includes $48.8
million and $49.9 million at December 31, 2010 and 2009 of consumer loan balances which are guaranteed by the
Company, respectively, before the accrual for losses of $2.8 million and $2.9 million, respectively, which has been
provided in the consolidated financial statements for December 31, 2010 and 2009, respectively.