Cash America 2013 Annual Report Download - page 103

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Total Expenses
The table below shows total expenses by segment, for corporate operations and by significant category for the
years ended December 31, 2013 and 2012 (dollars in thousands):
Year Ended December 31,
2013 2012
Retail
Services E-Commerce Corporate Total
Retail
Services E-Commerce Corporate Total
Operations and administration:
Personnel $ 217,470 $ 90,008 $ 45,350 $ 352,828 $ 221,841 $ 79,494 $ 42,302 $ 343,637
Occupancy 114,596 10,989 3,528 129,113 111,378 8,670 4,111 124,159
Marketing 12,195 135,336 221 147,752 12,884 108,810 192 121,886
Other 57,216 42,172 21,223 120,611 67,358 37,384 20,190 124,932
Total operations and administration 401,477 278,505 70,322 750,304 413,461 234,358 66,795 714,614
Depreciation and amortization 39,640 17,143 16,488 73,271 47,612 13,272 14,544 75,428
Total expenses $ 441,117 $ 295,648 $ 86,810 $ 823,575 $ 461,073 $ 247,630 $ 81,339 $ 790,042
Year-over-year change - $
Operations and administration $ (11,984) $ 44,147 $ 3,527 $ 35,690 $ 40,610 $ 61,237 $ 1,499 $ 103,346
Depreciation and amortization (7,972) 3,871 1,944 (2,157) 15,576 2,009 3,694 21,279
Total expenses $ (19,956) $ 48,018 $ 5,471 $ 33,533 $ 56,186 $ 63,246 $ 5,193 $ 124,625
Year-over-year change - % (4.3%) 19.4% 6.7% 4.2% 13.9% 34.3% 6.8% 18.7%
Consolidated total expenses increased $33.6 million, or 4.2%, to $823.6 million in 2013 compared to $790.0
million in 2012. Total expenses for the retail services segment decreased $20.0 million to $441.1 million during 2013
compared to $461.1 million in 2012. Total expenses for the e-commerce segment increased $48.0 million, or 19.4%, to
$295.6 million in 2013.
Operations and Administration Expenses
Retail Services
Operations and administration expenses for the retail services segment decreased $12.0 million, or 2.9%, to
$401.5 million during 2013 compared to 2012. Components of the decrease included a $10.1 million decrease in other
expenses, a $4.4 million decrease in personnel expenses, a $0.7 million decrease in marketing expenses and a $3.2
million increase in occupancy expenses.
The $10.1 million decrease from 2012 to 2013 in other expenses was primarily driven by the higher expenses
incurred in 2012 related to the $13.4 million charge for the Ohio Reimbursement Program. Also contributing to the
decrease in other expenses was approximately $4.4 million of lower expenses in 2013 from the charges incurred in 2012
related to the Mexico Reorganization and $7.0 million lower operating and administrative costs in 2013 from the
reduced operations in Mexico in 2013, mainly as a result of the Mexico Reorganization. In addition, in 2013, the retail
services segment recognized a benefit in operations and administration expenses of $5.0 million related to the Ohio
Adjustment, partially offset by a $2.5 million charge incurred in 2013 related to the $5.0 million Regulatory Penalty,
which was allocated for accounting purposes 50% to the retail services segment and 50% to the e-commerce segment.
Other decreases in other expenses were primarily due to decreased collection costs in 2013 as a result of a decrease in
loans written, lower processing charges related to the disposition of commercial merchandise and lower underwriting
costs related to a decrease in loans written in 2013. Partially offsetting the decreases noted above was an increase related
to an accrual of $18.0 million in 2013 for the 2013 Litigation Settlement. See “Recent Developments—Regulatory,
Litigation and Other Developments—2013 Litigation Settlement.”