Cash America 2012 Annual Report Download - page 111

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Total Expenses
The table below shows total expense by segment, for corporate operations and by significant category for the
years ended December 31, 2011 and 2010 (dollars in thousands):
Year Ended December 31,
2011 2010
Retail
Services E-Commerce Corporate Total
Retail
Services E-Commerce Corporate Total
Operations and administration:
Personnel $ 212,098 $ 64,668 $ 45,257 $ 322,023 $ 189,785 $ 55,412 $ 39,067 $ 284,264
Occupancy 95,483 6,939 3,382 105,804 87,008 6,025 2,523 95,556
Marketing 13,963 73,330 129 87,422 13,639 59,197 51 72,887
Other 51,307 28,184 16,528 96,019 39,330 15,536 13,561 68,427
Total operations and administration 372,851 173,121 65,296 611,268 329,762 136,170 55,202 521,134
Depreciation and amortization 32,036 11,263 10,850 54,149 27,296 8,559 8,068 43,923
Total expenses $ 404,887 $ 184,384 $ 76,146 $ 665,417 $ 357,058 $ 144,729 $ 63,270 $ 565,057
Year-over-year change - $
Operations and administration $ 43,089 $ 36,951 $ 10,094 $ 90,134 $ 23,870 $ 47,889 $ 1,319 $ 73,078
Depreciation and amortization 4,740 2,704 2,782 10,226 300 1,262 772 2,334
Total $ 47,829 $ 39,655 $ 12,876 $ 100,360 $ 24,170 $ 49,151 $ 2,091 $ 75,412
Year-over-year change - % 13.4% 27.4% 20.4% 17.8% 7.3% 51.4% 3.4% 15.4%
Total expenses increased $100.4 million, or 17.8%, to $665.4 million in 2011 compared to 2010. Total expenses
at the retail services segment increased $47.8 million, or 13.4%, to $404.9 million during 2011 compared to $357.1
million in 2010. Total expenses for the e-commerce segment increased $39.7 million, or 27.4%, to $184.4 million in
2011 compared to $144.7 million in 2010.
Operations and Administration Expenses
Operations and administration expenses for the retail services segment increased $43.1 million, or 13.1%, to
$372.9 million during 2011 compared to 2010. Personnel expense for the retail services segment increased $22.3
million, or 11.8%, during 2011, which was primarily related to increased personnel expense as a result of the addition of
45 retail services locations, net of closures, from October 1, 2010 to December 31, 2011, and to normal personnel
additions and merit increases. Occupancy expense increased $8.5 million, or 9.7%, during 2011, which mainly related to
additional locations and to normal rent increases. The increase in other operating expenses was due in part to
adjustments made by the Company during 2011 totaling $2.5 million in the foreign operations that are included in the
retail services segment, predominately related to the impairment of the existing point-of-sale system, which the
Company replaced in 2011, as well as adjustments for other impaired assets, severance and miscellaneous operating
expenses. In addition, other operating expenses increased due to increased maintenance, travel and office expenses and
general expense increases.
Operations and administration expenses for the e-commerce segment increased $37.0 million, or 27.1%, to
$173.1 million during 2011 compared to $136.2 million in 2010. Personnel expense increased $9.3 million, or 16.7%,
primarily due to the addition of new personnel to support the e-commerce segment’s growth in foreign markets.
Marketing expense increased $14.1 million, or 23.9%, mainly due to the online lending channel’s efforts to expand the
Company’s customer base in both domestic and foreign markets. The increase in other expenses was primarily due to
increased legal expenses and costs related to the proposed Enova IPO and associated activities. See “General — Recent
Developments—Withdrawal of Proposed Initial Public Offering of Enova International, Inc.” section above for
information regarding the withdrawal of this proposed IPO.