Cash America 2014 Annual Report Download - page 74

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Expenses
The table below shows additional detail of the total expenses for the Company for the years ended
December 31, 2014 and 2013 (dollars in thousands):
Year Ended December 31,
2014 2013
Operations and administration:
Personnel $297,180 $262,820
Occupancy 126,897 118,124
Other 66,388 88,274
Total operations and administration 490,465 469,218
Loss on divestitures 5,176
—
Depreciation and amortization 60,942 56,128
Total expenses $556,583 $525,346
Year-over-year change—$
Operations and administration $21,247 $
(11,038
)
Loss on divestitures 5,176
—
Depreciation and amortization 4,814 (6,028)
Total expenses $31,237 $
(17,066
)
Year-over-year change—% 5.9
%
(3.1
)%
Consolidated total expenses increased $31.2 million, or 5.9%, to $556.6 million in 2014 compared to 2013.
Operations and Administration Expenses
The Company completed a variety of strategic initiatives in 2014 that materially affected its operations and
administration expenses for the period. In addition, during 2013, the Company was affected by certain income and
expense items that impacted comparisons between the two periods. See “General—Recent Developments” and
“Overview” sections above for more information about the expense items in 2014.
Operations and administration expenses increased $21.2 million, or 4.5%, to $490.5 million in 2014
compared to 2013. Components of the increase included a $34.4 million increase in personnel expenses, an $8.8
million increase in occupancy expenses and a $22.0 million decrease in other expenses.
The $34.4 million increase in personnel expenses is primarily due to severance costs related to the 2014
Reorganization, the addition of retail services locations through acquisitions made during 2013, normal merit
increases, incentives and increased health insurance costs.
The $8.8 million increase in occupancy expenses, which includes rent, property taxes, insurance, utilities
and maintenance, is primarily due to acquisitions made during 2013 and normal rent increases, partially offset by
lower expenses in 2014, primarily related to $1.4 million of expenses in 2013 for the Texas Consumer Loan Store
Closures.
The $22.0 million decrease in other expenses in 2014 from 2013 was primarily driven by lower expenses in
2014 due to a charge incurred in 2013 related to an accrual of $18.0 million for the 2013 Litigation Settlement and
decreased marketing expenses in 2014 compared to 2013. Offsetting these decreases was an increase in expenses in
2014 due to a benefit recognized by the Company in 2013 of $5.0 million related to the Ohio Adjustment, partially
offset by a $2.5 million expense incurred in 2013 related to the Regulatory Penalty.
The 2014 Reorganization resulted in an increase in operations and administration expenses in 2014 and the
full impact of the cost reductions was not fully realized in 2014. Management expects that the cost reductions
resulting from the 2014 Reorganization will decrease operations and administration expenses related to its corporate
and field management operations in future periods relative to 2014.