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Pawn service charges receivable, net

5,000

144

218

Pawn loans

160,269

159,964

144,377

29,643

30,852

26,989

Inventory, net

130,368

124,084

115,283

Income taxes receivable

40,657

2,745

Current assets held for sale

^[1]

156,587

72,858

82,845

Prepaid expenses and other current assets

20,734

24,933

57,644

Total current assets

531,981

509,736

543,506

Investment in unconsolidated affiliate

57,656

56,182

90,423

Property and equipment, net

61,201

73,938

99,353

Goodwill

254,273

251,646

249,174

Intangible assets, net

30,569

30,778

37,951

Deferred tax asset, net

33,386

24,405

39,569

Non-current assets held for sale

^[1]

226,623

231,977

Other assets, net

18,950

13,736

26,493

Total assets

988,016

1,187,044

1,318,446

Current liabilities:

Accounts payable, accrued expenses and other current liabilities

59,239

109,875

77,966

Current liabilities held for sale

130,627

87,725

81,248

Customer layaway deposits

11,201

10,470

9,635

Income taxes payable

4,842

Total current liabilities

205,909

208,070

168,849

Long-term debt, net

211,421

197,976

207,925

Non-current liabilities held for sale

^[2]

101,644

125,378

Deferred gains and other long-term liabilities

3,321

3,703

4,752

Total liabilities

420,651

511,393

506,904

Commitments and contingencies (Note 11)

Temporary equity:

Redeemable noncontrolling interest

(2,410)

2,532

16,318

Total temporary equity

(2,410)

14,228

28,014

Stockholders’ equity:

Additional paid-in capital

313,607

307,080

327,018

Retained earnings

320,537

407,825

498,360

Accumulated other comprehensive loss

(64,703)

(54,019)

(42,386)

EZCORP, Inc. stockholders’ equity

569,981

661,423

783,528

Noncontrolling interest

(206)

Total equity

569,775

661,423

783,528

Total liabilities, temporary equity and equity

988,016

1,187,044

1,318,446

Common Stock Class A Non-voting, Subject to Possible Redemption

Temporary equity:

Class A Non-voting Common Stock, subject to possible redemption at $10.06 per share; none as of June 30, 2016 and 1,168,456 shares issued and outstanding at redemption value as of June 30, 2015 and September 30, 2015

11,696

Common Stock Class A Non-voting

Stockholders’ equity:

Common stock

510

507

506

Common Stock Class B Voting

Stockholders’ equity:

Common stock

$ 30

[1]	Restricted cash $294, $1,617 and $1,361Consumer loans, net $5,212, $13,207 and $5,846Consumer loan fees and interest receivable, net $2,948, $4,979 and $6,399Non-current consumer loans, net $13,440, $30,238 and $27,162Total assets of consolidated VIEs $21,894, $50,041 and $40,768
[2]	Current maturities of long-term debt $35,959, $46,039 and $42,017Accounts payable and other accrued expenses $1,272, $3,988 and $4,313Long-term debt, less current maturities $4,884, $40,776 and $31,247Total liabilities of consolidated VIEs $42,115, $90,803 $77,577

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands

Jun. 30, 2016

Sep. 30, 2015

Jun. 30, 2015

Accounts payable and other accrued expenses

$ 5,000

$ 144

$ 218

59,239

109,875

77,966

Long-term debt, less current maturities

211,421

197,976

207,925

Total liabilities

$ 420,651

$ 511,393

$ 506,904

Common Stock Class A Non-voting, Subject to Possible Redemption

Common stock, redemption price (in dollars per share)

$ 0

$ 10.06

Common stock, shares issued (shares)

1,168,456

Common stock, shares outstanding (shares)

1,168,456

Common Stock Class A Non-voting

Common stock, par value (in dollars per share)

$ 0.01

Common stock, shares authorized (shares)

100,000,000

Common stock, shares issued (shares)

51,019,332

50,726,289

50,681,477

Common stock, shares outstanding (shares)

51,019,332

50,726,289

50,681,477

Common Stock Class B Voting

Common stock, par value (in dollars per share)

$ 0.01

Common stock, shares authorized (shares)

3,000,000

Common stock, shares issued (shares)

2,970,171

Common stock, shares outstanding (shares)

2,970,171

Variable Interest Entity, Primary Beneficiary

Consumer loan fees and interest receivable, net

$ 294

$ 1,361

$ 1,617

Consumer loans, net

5,212

5,846

13,207

2,948

6,399

4,979

Non-current consumer loans, net

13,440

27,162

30,238

Total assets of consolidated VIEs

21,894

40,768

50,041

Current maturities of long-term debt

^[1]

35,959

42,017

46,039

Accounts payable and other accrued expenses

1,272

4,313

3,988

Long-term debt, less current maturities

^[1]

4,884

31,247

40,776

Total liabilities

$ 42,115

$ 77,577

$ 90,803

[1]	This amount has been revised from the originally filed amount due to an immaterial reclassification error between current and non-current amounts as of September 30, 2015. The consolidated amounts previously reported in the balance sheet were correct

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Merchandise sales	$ 94,014	$ 93,137	$ 311,941	$ 310,628
Jewelry scrapping sales	11,230	10,588	33,631	47,521
Pawn service charges	62,473	57,599	193,197	181,996
Consumer loan fees and interest	2,201	2,708	6,603	7,517
Other revenues	232	587	548	2,047
Total revenues	170,150	164,619	545,920	549,709
Merchandise cost of goods sold	60,140	61,460	194,731	206,430
Jewelry scrapping cost of goods sold	9,110	8,580	28,271	37,609
Consumer loan bad debt	506	771	1,549	2,197
Net revenues	100,394	93,808	321,369	303,473
Operating expenses:
Operations	73,172	71,455	221,446	213,335
Administrative	14,481	16,860	50,085	44,212
Depreciation and amortization	6,274	7,537	20,422	22,448
(Gain) loss on sale or disposal of assets	(41)	82	641	725
Restructuring	0	37	1,910	763
Total operating expenses	93,886	95,971	294,504	281,483
Operating income (loss)	6,508	(2,163)	26,865	21,990
Interest expense	3,936	3,783	12,014	12,456
Interest income	(50)	(84)	(66)	(223)
Equity in net income of unconsolidated affiliate	(1,694)	(1,822)	(5,626)	(338)
Other expense (income)	500	(222)	815	953
Income (loss) from continuing operations before income taxes	3,816	(3,818)	19,728	9,142
Income tax expense (benefit)	1,038	(3,035)	11,224	4,217
Income (loss) from continuing operations, net of tax	2,778	(783)	8,504	4,925
Loss from discontinued operations, net of tax	(9,133)	(9,454)	(100,916)	(5,047)
Net loss	(6,355)	(10,237)	(92,412)	(122)
Net loss attributable to noncontrolling interest	(666)	(390)	(5,124)	(3,230)
Net (loss) income attributable to EZCORP, Inc.	$ (5,689)	$ (9,847)	$ (87,288)	$ 3,108
Basic earnings per share attributable to EZCORP, Inc. — continuing operations (usd per share)	$ 0.05	$ (0.01)	$ 0.16	$ 0.11
Diluted earnings per share attributable to EZCORP, Inc. — continuing operations (usd per share)	$ 0.05	$ (0.01)	$ 0.16	$ 0.11
Weighted-average basic shares outstanding (shares)	53,980	54,820	54,574	54,216
Net income (loss) from continuing operations attributable to EZCORP, Inc.	$ 2,904	$ (683)	$ 8,954	$ 5,807
Net loss from discontinued operations attributable to EZCORP, Inc.	$ (8,593)	$ (9,164)	$ (96,242)	$ (2,699)

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (6,355)	$ (10,237)	$ (92,412)	$ (122)
Other comprehensive loss:
Foreign currency translation loss, net of income tax (expense) benefit for our investment in unconsolidated affiliate of ($799) and $1,052 for the three and nine-months ended June 30, 2016, respectively, and $1,370 and $1,590 for the three and nine-months ended June 30, 2015, respectively	(1,832)	(8,477)	(10,976)	(36,476)
Cash flow hedges:
Amounts reclassified from accumulated other comprehensive loss	0	35	22	422
Other comprehensive loss, net of tax	(1,832)	(8,442)	(10,954)	(36,054)
Comprehensive loss	(8,187)	(18,679)	(103,366)	(36,176)
Comprehensive (loss) income attributable to redeemable noncontrolling interest:
Net loss	(666)	(390)	(5,124)	(3,230)
Foreign currency translation loss	66	(626)	(271)	(3,853)
Amounts reclassified from accumulated other comprehensive loss	0	9	1	103
Comprehensive loss attributable to noncontrolling interest	(600)	(1,007)	(5,394)	(6,980)
Comprehensive loss attributable to EZCORP, Inc.	$ (7,587)	$ (17,672)	$ (97,972)	$ (29,196)

Condensed Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustment, tax	$ (799)	$ 1,370	$ 1,052	$ 1,590

Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

9 Months Ended

Jun. 30, 2016

Jun. 30, 2015

Operating activities:

Net loss

$ (92,412)

$ (122)

Loss from discontinued operations

^[1]

100,172

7,819

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

20,422

25,316

Amortization of debt discount and consumer loan premium, net

6,574

6,099

Consumer loan loss provision

278

18,652

Deferred income taxes

(321)

(5,742)

Impairment of goodwill

10,550

Amortization of deferred financing costs

1,318

1,213

Other adjustments

961

1,348

Loss on sale or disposal of assets

641

956

Stock compensation expense (benefit)

3,206

(1,319)

Income from investment in unconsolidated affiliate

(5,626)

(338)

Changes in operating assets and liabilities, net of business acquisitions:

Service charges and fees receivable

1,838

5,329

Inventory

(1,349)

926

Prepaid expenses, other current assets and other assets

(1,038)

(5,124)

Accounts payable and other, deferred gains and other long-term liabilities

(22,902)

(13,029)

Customer layaway deposits

781

1,127

Payments of restructuring charges

(4,861)

(459)

Income taxes receivable

45,499

17,459

(8,367)

(3,668)

Dividends from unconsolidated affiliate

2,197

4,842

Net cash provided by operating activities — continuing operations

47,011

71,835

Net cash provided by (used in) operating activities — discontinued operations

^[1]

10,926

(21,523)

Investing activities:

Loans made

(469,133)

(575,038)

Loans repaid

291,704

409,793

Recovery of pawn loan principal through sale of forfeited collateral

173,710

191,170

Additions to property and equipment

(6,408)

(21,914)

Acquisitions, net of cash acquired

(6,000)

(4,120)

Investment in unconsolidated affiliate

(12,140)

Net cash used in investing activities — continuing operations

(16,127)

(12,249)

Net cash provided by (used in) investing activities — discontinued operations

^[1]

4,590

(1,894)

Financing activities:

Payout of deferred consideration

(14,875)

(6,000)

Repurchase of redeemable common stock issued due to acquisitions

(11,750)

Purchase of subsidiary shares from noncontrolling interest

(2,774)

Payments on capital lease obligations

(48)

(355)

Net cash used in financing activities — continuing operations

(26,673)

(9,129)

Net cash (used in) provided by financing activities — discontinued operations

^[1]

(41,237)

37,713

Effect of exchange rate changes on cash and cash equivalents

(6,506)

(5,691)

Net (decrease) increase in cash and cash equivalents

(28,016)

59,062

Cash and cash equivalents at beginning of period, excluding held for sale

56,244

52,294

Cash and cash equivalents held for sale at beginning of period

2,880

3,031

Cash and cash equivalents at end of period

31,108

114,387

Less: cash and cash equivalents held for sale at end of period

(1,728)

(982)

Cash and cash equivalents at end of period, excluding held for sale

29,380

113,405

Non-cash investing and financing activities:

Pawn loans forfeited and transferred to inventory

179,394

170,185

Issuance of common stock, subject to possible redemption, due to acquisition

11,696

Deferred consideration

124

Payable to purchase additional shares of noncontrolling interest

$ 0

$ 322

[1]	See Note 1 for discussion of operations discontinued subsequent to the adoption of ASU 2014-08. Amounts are exclusive of intercompany loans.

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance at Sep. 30, 2014	$ 817,970	$ 536	$ 332,264	$ 495,252	$ (10,082)
Beginning balance (shares) at Sep. 30, 2014		53,585
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock related to 401(k) match	0
Issuance of common stock related to 401(k) match (shares)		1
Stock compensation	(1,319)		(1,319)
Purchase of subsidiary shares from noncontrolling interest	(3,636)		(3,564)		(72)
Release of restricted stock	0
Release of restricted stock (shares)		66
Excess tax deficiency from stock compensation	(167)		(167)
Taxes paid related to net share settlement of equity awards	(196)		(196)
Amounts reclassified from accumulated other comprehensive loss	319				319
Foreign currency translation adjustment	(32,551)				(32,551)
Net loss attributable to EZCORP, Inc.	3,108			3,108
Ending balance at Jun. 30, 2015	783,528	$ 536	327,018	498,360	(42,386)
Ending balance (shares) at Jun. 30, 2015		53,652
Beginning balance at Sep. 30, 2015	661,423	$ 537	307,080	407,825	(54,019)
Beginning balance (shares) at Sep. 30, 2015		53,696
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock compensation	7,012		7,012
Release of restricted stock	3	$ 3
Release of restricted stock (shares)		294
Excess tax deficiency from stock compensation	(336)		(336)
Taxes paid related to net share settlement of equity awards	(149)		(149)
Amounts reclassified from accumulated other comprehensive loss	21				21
Foreign currency translation adjustment	(10,705)				(10,705)
Net loss attributable to EZCORP, Inc.	(87,288)			(87,288)
Ending balance at Jun. 30, 2016	$ 569,981	$ 540	$ 313,607	$ 320,537	$ (64,703)
Ending balance (shares) at Jun. 30, 2016		53,990

Organization and Summary of Significant Accounting Policies

9 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of Business

When used in this report, the terms “we,” “us,” “our,” “EZCORP” and the “Company” mean EZCORP, Inc. and its consolidated subsidiaries, collectively.

We are a leading provider of pawn loans in the United States and Mexico. In the United States and Mexico, we offer pawn loans, which are non-recourse loans collateralized by tangible property, and we sell merchandise, primarily collateral forfeited from pawn lending operations and used merchandise purchased from customers.

As further discussed in Note 2, we have classified all of the assets and liabilities of our 94%-owned subsidiary, Prestaciones Finmart, S.A.P.I. de C.V., SOFOM, E.N.R. ("Grupo Finmart"), as held for sale and recast all results of operations as discontinued operations.

We also own approximately 31% of Cash Converters International Limited ("Cash Converters International"), based in Australia and publicly-traded on the Australian Stock Exchange, which franchises and operates a worldwide network of over 700 locations that provide pawn loans, short-term unsecured loans and other consumer finance products, and buy and sell second-hand goods, with significant store concentration in Australia and the United Kingdom.

Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. Our management has included all adjustments it considers necessary for a fair presentation. These adjustments are of a normal, recurring nature except for those related to discontinued operations described in Note 2. All intercompany accounts and transactions have been eliminated in consolidation.

The accompanying financial statements should be read in conjunction with the condensed consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended September 30, 2015. The balance sheet as of September 30, 2015 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Our business is subject to seasonal variations, and operating results for the three and nine-months ended June 30, 2016 (the "current quarter" and "current nine-months," respectively) are not necessarily indicative of the results of operations for the full fiscal year.

To determine if we hold a controlling financial interest in an entity, we first evaluate if we are required to apply the variable interest entity ("VIE") model to the entity; otherwise, the entity is evaluated under the voting interest model. Where we hold current or potential rights that give us the power to direct the activities of a VIE that most significantly impact the VIE's economic performance combined with a variable interest that gives us the right to receive potentially significant benefits or the obligation to absorb potentially significant losses, we have a controlling financial interest in that VIE. Rights held by others to remove the party with power over the VIE are not considered unless one party can exercise those rights unilaterally. Grupo Finmart has completed several transfers of consumer loans to various securitization trusts. We consolidate those securitization entities under the VIE model as described in Note 16. As further discussed in Note 2, we have classified all of the assets and liabilities of these VIEs as held for sale and recast all results of operations as discontinued operations.

We account for our investment in our unconsolidated affiliate Cash Converters International using the equity method.

There have been no changes in significant accounting policies as described in our Annual Report on Form 10-K for the year ended September 30, 2015, other than those described below.

Revision to Prior Period Financial Statements

During the third quarter of fiscal 2016, we identified an overstatement of our recorded net tax assets. The impact of these overstatements was a $14.3 million decrease to our retained earnings balance as of September 30, 2014. Our analysis of the overstatement indicates that the underlying errors originated in periods prior to fiscal 2013 and relate primarily to the deferred tax balances associated with equity method investments, stock compensation and foreign acquisitions. We have evaluated the errors and have determined that their impact is not material to our results of operations, financial position or cash flows in previously reported periods. Consequently, we have retrospectively revised the financial statements presented herein to reflect the correction of these errors. The impact of this revision on the consolidated balance sheets as of June 30 and September 30, 2015 is as follows:



	June 30, 2015
	As Previously Reported		Adjustments			As Revised

	(in thousands)
Income taxes receivable	$	25,535	$	(22,790	)	$	2,745
Income taxes receivable, goodwill and deferred tax asset, net included in assets held for sale	102,126		4,256			106,382
Deferred tax asset, net	35,412		4,157			39,569
Redeemable noncontrolling interest	16,361		(43		)	16,318
Retained earnings	512,694		(14,334		)	498,360



	September 30, 2015
	As Previously Reported		Adjustments			As Revised

	(in thousands)
Income taxes receivable	$	42,057	$	(1,400	)	$	40,657
Income taxes receivable, goodwill and deferred tax asset, net included in assets held for sale	114,861		(5,828		)	109,033
Deferred tax asset, net	33,192		(8,787		)	24,405
Redeemable noncontrolling interest	3,235		(703		)	2,532
Retained earnings	423,137		(15,312		)	407,825

Recasting of Certain Prior Period Information

Certain reclassifications of prior period amounts have been made to conform to the current period presentation. These reclassifications, other than those pertaining to the recasting of prior period segment information and discontinued operations discussed in our Annual Report on Form 10-K for the year ended September 30, 2015 and in Note 2 and the adoption of Financial Accounting Standards Board ("FASB") Accounting Standards Updates ("ASU") discussed below, primarily include the following:

•

Reclassification of "Consumer loans, net" and "Consumer loan fees and interest receivable, net," exclusive of Grupo Finmart amounts presented in Note 2, which are solely attributable to our Other International segment, to "Prepaid expenses and other current assets." The total historical amounts that were reclassified were $25.6 million and $5.4 million as of June 30 and September 30, 2015, respectively. These changes had no net impact on our consolidated financial position, results of operations or cash flows.

•

Removal of historical corporate overhead allocations totaling $4.3 million and $12.4 million (inclusive of historical Grupo Finmart allocations) for the three and nine-months ended June 30, 2015, respectively, from segment level "Operations" expense and inclusion in corporate "Administrative" expense. These allocations were reclassified to provide greater clarity into the results of our segment operations. These changes primarily impacted Note 12 with no net impact on our consolidated financial position, results of operations or cash flows.


•	Reclassification of "Prepaid income taxes" to "Income taxes receivable" of $4.8 million as of September 30, 2015, exclusive of Grupo Finmart amounts presented in Note 2, to conform to current period presentation.


•	Reclassification of "Other current liabilities" to "Accounts payable, accrued expenses and other current liabilities" of $6.1 million and $15.4 million as of June 30 and September 30, 2015, respectively and exclusive of Grupo Finmart amounts presented in Note 2, to conform to current period presentation.

Use of Estimates and Assumptions

The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates and judgments, including those related to revenue recognition, inventory, loan loss allowances, long-lived and intangible assets, share-based compensation, income taxes, contingencies and litigation. We base our estimates on historical experience, observable trends and various other assumptions that we believe are reasonable under the circumstances. We use this information to make judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates under different assumptions or conditions.

Recently Adopted Accounting Policies

Simplification of Adjustments to Provisional Amounts Identified During a Measurement Period

In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805). This ASU requires reporting entities to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, with the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. A reporting entity should apply the amendment prospectively to adjustments to provisional amounts that occur after the date of adoption. We early adopted ASU 2015-16 during the three-months ended March 31, 2016 to reduce the cost and complexity of accounting for and reporting business combinations. There was no material impact of adopting ASU 2015-16 on our consolidated financial position, results of operations or cash flows.

Share-Based Awards with Performance Targets that could be Achieved after the Requisite Service Period

In June 2014, the FASB issued ASU 2014-12, Compensation — Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU requires reporting entities to recognize compensation costs for share-based awards with performance targets in the period in which it becomes probable that the performance targets will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. A reporting entity may apply the amendment prospectively or retrospectively. We early adopted ASU 2015-16 during the three-months ended March 31, 2016 and applied the amendments prospectively to all awards granted or modified after the effective date. There was no material impact of adopting ASU 2014-12 on our consolidated financial position, results of operations or cash flows.

Classification of Deferred Tax Assets

In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. This ASU requires reporting entities to classify deferred income taxes as non-current on the condensed consolidated balance sheets. Deferred income taxes were previously required to be classified as current or non-current on the condensed consolidated balance sheets. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. A reporting entity may apply the amendment prospectively or retrospectively. We early adopted ASU 2015-17 during the three-months ended December 31, 2015 on a retrospective basis. The impact of adopting ASU 2015-17 on our current period condensed consolidated financial statements was the classification of all deferred tax assets as non-current in addition to the reclassification of current "Deferred tax asset, net" to non-current "Deferred tax asset, net" as of June 30, 2015 and September 30, 2015 of $24.4 million and $44.1 million, respectively, within the condensed consolidated balance sheets to conform to the current period presentation. Other than these reclassifications, the adoption of ASU 2015-17 did not have an impact on our consolidated financial position, results of operations or cash flows.

Presentation of Debt Issuance Costs

In April 2015, the FASB issued ASU 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This ASU requires reporting entities to record costs paid to third parties that are directly related to issuing debt, and that otherwise would not be incurred, as a deduction to the corresponding debt for presentation purposes. In addition, in August 2015, FASB issued ASU 2015-15, Interest — Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements-Amendments to SEC Paragraphs Pursuant to Staff Announcement at the June 18, 2015 Emerging Issues Task Force ("EITF") Meeting. Given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, ASU 2015-15 states the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The provisions of each ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted for each. A reporting entity should apply each amendment retrospectively. We early adopted ASU 2015-03 during the three-months ended December 31, 2015 on a retrospective basis. The impact of adopting ASU 2015-03 on our current period condensed consolidated financial statements was the classification of all deferred financing costs as a deduction to the corresponding debt in addition to the reclassification of deferred financing costs in "Intangible assets, net" to "Long-term debt less current maturities, net" as of June 30, 2015 and September 30, 2015 of $10.4 million and $9.2 million, respectively, within the condensed consolidated balance sheets to conform to the current period presentation. Other than these reclassifications and additional disclosures, the adoption of ASU 2015-03 did not have an impact on our consolidated financial position, results of operations or cash flows.

Reporting Discontinued Operations

In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) — Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This ASU provides guidance for the reporting of discontinued operations if (1) a component or group of components of an entity meets the criteria in FASB Accounting Standards Codification ("ASC") Paragraph 205-20-45-1E to be classified as held for sale; (2) the component of an entity or group of components of an entity is disposed of by sale; or (3) the component of an entity or group of components of an entity is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). Among other disclosures, ASU 2014-08 requires an entity to present, for each comparative period, the assets and liabilities of a disposal group that includes a discontinued operation separately in the asset and liability sections, respectively, of the statement of financial position. ASU 2014-08 is effective prospectively for (1) all disposals of components that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years; and (2) all businesses or nonprofit activities that, on acquisition, are classified as held for sale that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. There was no impact of adopting ASU 2014-08 on our consolidated financial position, results of operations or cash flows, however subsequent to adoption we have classified our Grupo Finmart segment as held for sale.

We have presented our Grupo Finmart segment classified as a discontinued operation as held for sale under ASU 2014-08, including separate presentation of assets and liabilities held for sale in our condensed consolidated balance sheets and separate presentation of cash flows from discontinued operations in our condensed consolidated statements of cash flows, with historical amounts recast to conform to current period presentation. We have presented our operations discontinued prior to adoption of ASU 2014-08 during the three-months ended December 31, 2015 including our U.S. financial services business ("USFS") and our online lending businesses in the United States ("EZOnline") and the United Kingdom ("Cash Genie") under the accounting guidance in effect before the adoption of ASU 2014-08.

Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU requires financial assets (or groups of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected, among other provisions. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted as of fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A reporting entity should generally apply the amendment on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting periods in which the amendment is effective. We are in the process of evaluating the impact of adopting ASU 2016-13 on our consolidated financial position, results of operations and cash flows.

In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. A reporting entity should apply the amendment using transition guidance for each aspect of the ASU. We are in the process of evaluating the impact of adopting ASU 2016-09 on our consolidated financial position, results of operations and cash flows.

In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments a consensus of the FASB Emerging Issues Task Force. This ASU clarifies what steps are required when assessing whether the economic characteristics and risks of call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts, which is one of the criteria for bifurcating an embedded derivative. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. A reporting entity should apply the amendment modified retrospective basis to existing debt instruments as of the beginning of the fiscal year for which the amendments are effective. We are in the process of evaluating the impact of adopting ASU 2016-06 on our consolidated financial position, results of operations and cash flows.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted based upon guidance issued within the ASU. We are in the process of evaluating the impact of adopting ASU 2016-02 on our consolidated financial position, results of operations and cash flows.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU makes targeted improvements to the accounting for, and presentation and disclosure of, financial assets and liabilities. The ASU further requires separate presentation of financial assets and financial liabilities by measurement category on the balance sheet or the accompanying notes to the financial statements. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted based upon guidance issued within the ASU. A reporting entity should apply the amendment prospectively, with a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. We are in the process of evaluating the impact of adopting ASU 2016-01 on our consolidated financial position, results of operations and cash flows.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). On August 12, 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) to defer the effective date to December 15, 2017 for annual reporting periods beginning after that date. The FASB also permitted early adoption of the standard, but not before the original effective date of December 15, 2016. The amendments in ASU 2014-09 will be added to the Accounting Standards Codification as Topic 606, Revenue from Contracts with Customers, and will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, as well as some cost guidance in Subtopic 605-35, Revenue Recognition - Construction-Type and Production-Type Contracts. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, the guidance provides that an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. Notably, the existing requirements for the recognition of a gain or loss on the transfer of non-financial assets that are not in a contract with a customer (e.g., assets within the scope of Topic 360, Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles — Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement in ASU 2014-09. The new standard allows for two methods of adoption: (a) full retrospective adoption, meaning the standard is applied to all periods presented, or (b) modified retrospective adoption, meaning the cumulative effect of applying the new standard is recognized as an adjustment to the fiscal 2017 opening retained earnings balance. In March 2016 through May 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Consensuses of the FASB Emerging Issues Task Force and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. ASU 2016-08, 2016-10 and 2016-12 clarify implementation guidance and introduce practical expedients, and are effective upon adoption of ASU 2014-09. We are evaluating the impact that will result from adopting ASU 2014-09 and related ASUs on our consolidated financial position, results of operations, and cash flows.

Discontinued Operations and Restructuring

9 Months Ended

Jun. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS AND RESTRUCTURING

NOTE 2: DISCONTINUED OPERATIONS AND RESTRUCTURING

Fiscal 2016

On February 8, 2016 in conjunction with ongoing evaluation of our strategic direction, we announced that we were conducting a comprehensive review of strategic options for Grupo Finmart to be completed by the end of the third quarter of fiscal 2016. In April 2016, a special committee of our board of directors comprised entirely of independent directors, after reviewing a variety of strategic alternatives with management and the company's financial advisors, concluded that a sale of the business was the preferred alternative and authorized management to proceed with a process to solicit proposals from interested buyers. See Note 18 for discussion of the definitive agreement to sell the business entered into effective July 1, 2016.

As a result of the decision to sell the Grupo Finmart business, the Company has classified Grupo Finmart as held for sale as of June 30, 2016 and recast all segment operations of Grupo Finmart as discontinued operations. We recognized no loss on classification as held for sale during the three-months ended June 30, 2016. All assets and liabilities of Grupo Finmart have been presented as current as of June 30, 2016 due to anticipated sale within one year. All historical assets and liabilities of Grupo Finmart have been presented as current or non-current based on their historical presentation. We have ceased depreciation and amortization of all long-lived assets classified as held for sale under FASB ASC 350-10-35-43 as of April 2016.

The following table presents the reconciliation of the major line items constituting "Loss from discontinued operations, net of tax" of Grupo Finmart that are presented in the condensed consolidated statements of operations:



	Three Months Ended June 30,						Nine Months Ended June 30,
	2016			2015			2016			2015

	(in thousands)
Revenues	$	11,762		$	17,015		$	36,345		$	49,826
Consumer loan bad debt	(6,200		)	(2,835		)	(26,444		)	(14,685		)
Operations expense	(9,506		)	(8,205		)	(27,120		)	(23,602		)
Impairment of goodwill	—			—			(73,921		)	—
Interest expense, net	(3,944		)	(5,617		)	(13,255		)	(19,370		)
Depreciation, amortization and other expenses	(4,580		)	(1,488		)	(6,216		)	(4,126		)
Loss from discontinued operations before income taxes of Grupo Finmart	$	(12,468	)	$	(1,130	)	$	(110,611	)	$	(11,957	)
Income tax benefit	2,746			512			10,439			4,138
Income (loss) from discontinued operations, net of tax of operations discontinued prior to the adoption of ASU 2014-08	589			(8,836		)	(744		)	2,772
Loss from discontinued operations, net of tax	$	(9,133	)	$	(9,454	)	$	(100,916	)	$	(5,047	)

Loss from discontinued operations, net of tax of Grupo Finmart	$	(9,722	)	$	(618	)	$	(100,172	)	$	(7,819	)
Loss from discontinued operations, net of tax of Grupo Finmart attributable to noncontrolling interest	540			290			4,674			2,348
Loss from discontinued operations, net of tax of Grupo Finmart attributable to EZCORP, Inc.	$	(9,182	)	$	(328	)	$	(95,498	)	$	(5,471	)

The following table presents the reconciliation of the carrying amounts of major classes of assets and liabilities of Grupo Finmart that are classified as held for sale presented in the condensed consolidated balance sheets:



	June 30, 2016		June 30, 2015		September 30, 2015

	(in thousands)
Cash and cash equivalents	$	1,728	$	982	$	2,880
Restricted cash (1)	11,654		27,797		14,993
Consumer loans, net (1)	19,905		36,719		31,824
Consumer loan fees and interest receivable, net (1)	11,390		13,595		19,105
Prepaid expenses, income taxes and other current assets	5,004		3,752		4,056
Restricted cash, non-current (1)	2,226		2,978		2,883
Goodwill, intangible assets, and property and equipment, net	10,304		101,083		92,391
Non-current consumer loans, net (1)	51,504		82,739		75,824
Deferred tax and other assets, net	42,872		45,177		55,525
Total assets classified as held for sale	$	156,587	$	314,822	$	299,481

Current maturities of long-term debt	$	80,248	$	69,054	$	74,345
Accounts payable, accrued expenses and other current liabilities	14,098		12,194		13,380
Long-term debt, less current maturities, net and other long-term liabilities (2)	36,281		125,378		101,644
Total liabilities classified as held for sale	$	130,627	$	206,626	$	189,369

(1) These amounts include the following assets of Grupo Finmart's securitization trust that can only be used to settle its liabilities (see Note 16):



	June 30, 2016		June 30, 2015		September 30, 2015

	(in thousands)
Restricted cash	$	5,505	$	17,398	$	12,033
Consumer loans*	32,472		37,288		36,845
Consumer loan fees and interest receivable, net	6,974		5,614		6,067
Restricted cash, non-current	182		117		197
Total assets of Grupo Finmart's securitization trust	$	45,133	$	60,417	$	55,142

These amounts include the current and non-current portions of active consumer loans considered to be performing under the terms of the Grupo Finmart securitization trust. These balances, which represent the total collateral that can be used to settle the liabilities of the securitization trust, exclude loan loss allowances as described in Note 13, and are presented on a net basis in the condensed consolidated balance sheets including allowances.

(2) This amount includes the following liabilities for which the creditors of Grupo Finmart's securitization trust do not have recourse to the general credit of EZCORP, Inc. (see Note 16):



	June 30, 2016		June 30, 2015		September 30, 2015

	(in thousands)
Long-term debt, less current maturities	$	25,669	$	43,900	$	40,493

Assets and liabilities classified as held for sale and presented above are exclusive of net intercompany liabilities totaling $49.2 million, $3.4 million and $19.9 million as of June 30, 2016 and 2015 and September 30, 2015, respectively.

Fiscal 2015

During the fourth quarter of fiscal 2015, in the context of a transformational change in strategy following an intensive six-month review of all Company activities, we implemented a plan that included exiting our U.S. financial services business ("USFS"). We further streamlined our structure and operating model to improve overall efficiency and reduce costs. The costs of streamlining our structure and operating model are included under "Restructuring" expenses in our condensed consolidated statements of operations and are allocated to certain of our segments as presented in Note 12.

Total revenue included in "Loss from discontinued operations, net of tax" in our condensed consolidated statements of operations for the three and nine-months ended June 30, 2016, exclusive of Grupo Finmart revenue presented in our fiscal 2016 action above, was nil and $2.1 million, respectively, and $31.5 million and $109.3 million, respectively, for the three and nine-months ended June 30, 2015. All revenue, expense and income reported in these condensed consolidated financial statements have been adjusted to reflect reclassification of all discontinued operations.

The following table summarizes the pre-tax restructuring charges of the fiscal 2015 restructuring action, inclusive of the charges presented in the changes in the balance of restructuring costs rollforward below:



	Three Months Ended June 30, 2016		Nine Months Ended June 30, 2016

	(in thousands)
Other (a)	$	—	$	768
Asset disposals	—		323
Lease termination costs	—		819
	$	—	$	1,910


(a)	Includes costs related to employee severance and other.

Accrued lease termination costs, severance costs and other costs related to restructuring are included under "Accounts payable, accrued expenses and other current liabilities" in our condensed consolidated balance sheets. Changes in these amounts attributable to the fiscal 2015 restructuring action during the three and nine-months ended June 30, 2016 are summarized as follows:



	Three Months Ended June 30, 2016			Nine Months Ended June 30, 2016

	(in thousands)
Beginning balance	$	5,178		$	8,076
Charged to expense	—			1,594
Cash payments	(1,666		)	(5,466		)
Other (a)	1,716			1,024
Ending balance	$	5,228		$	5,228


(a)	Includes other individually immaterial adjustments as well as adjustments to our estimate of lease termination costs.

The above ending balance includes accrued lease termination costs of $5.1 million that we expect to be partially offset by future sublease payments through 2029. The remaining other amounts accrued are expected to be paid during fiscal 2016.

Fiscal 2014

During the fourth quarter of fiscal 2014, we conducted a company-wide operational review to realign our organization to streamline operations and create synergies and efficiencies. Restructuring charges related to this action were considered corporate costs and therefore are not allocated to specific segments. Changes in these amounts during the three and nine-months ended June 30, 2016 and 2015 are summarized as follows:



	Three Months Ended June 30,					Nine Months Ended June 30,
	2016		2015			2016			2015

	(in thousands)
Beginning balance	$	—	$	3,885		$	2,901		$	6,121
Charged to expense	—		37			—			763
Cash payments	—		(706		)	(2,901		)	(3,668		)
Ending Balance	$	—	$	3,216		$	—		$	3,216

The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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Acquisitions	9 Months Ended
Acquisitions	Jun. 30, 2016
Business Combinations [Abstract]
ACQUISITIONS	NOTE 3: ACQUISITIONS On February 1, 2016, we acquired six pawn stores in the Houston, Texas area doing business under the "Pawn One" brand. The aggregate purchase price was $6.2 million in cash, inclusive of all ancillary arrangements, of which $3.2 million was recorded as goodwill in the U.S. Pawn segment. The acquisition was made as part of our continuing strategy to enhance our earnings over the long-term. The factors contributing to the recognition of goodwill were based on several strategic and synergistic benefits we expect to realize from the acquisition. These benefits include a greater presence in the Houston area, as well as the ability to further leverage our expense structure through increased scale. We expect no goodwill recorded as a result of the acquisition to be deductible for tax purposes. We have concluded that this acquisition was immaterial to our overall consolidated financial results and, therefore, have omitted the information that would otherwise be required by FASB ASC 805-10-50-2(h).

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

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-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=73530397&loc=SL65897772-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1383-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479

Equity Method Investments and Joint Ventures [Abstract]

Earnings per Share

9 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 4: EARNINGS PER SHARE

Components of basic and diluted (loss) earnings per share and excluded anti-dilutive potential common shares are as follows:



	Three Months Ended June 30,						Nine Months Ended June 30,
	2016			2015			2016			2015

	(in thousands, except per share amounts)
Net income (loss) from continuing operations attributable to EZCORP (A)	$	2,904		$	(683	)	$	8,954		$	5,807
Loss from discontinued operations, net of tax (B)	(8,593		)	(9,164		)	(96,242		)	(2,699		)
Net (loss) income attributable to EZCORP (C)	$	(5,689	)	$	(9,847	)	$	(87,288	)	$	3,108

Weighted-average outstanding shares of common stock (D)	53,980			54,820			54,574			54,216
Dilutive effect of restricted stock*	212			—			116			64
Weighted-average common stock and common stock equivalents (E)	54,192			54,820			54,690			54,280

Basic (loss) earnings per share attributable to EZCORP:
Continuing operations (A / D)	$	0.05		$	(0.01	)	$	0.16		$	0.11
Discontinued operations (B / D)	(0.16		)	(0.16		)	(1.76		)	(0.06		)
Basic (loss) earnings per share (C / D)	$	(0.11	)	$	(0.17	)	$	(1.60	)	$	0.05

Diluted (loss) earnings per share attributable to EZCORP:
Continuing operations (A / E)	$	0.05		$	(0.01	)	$	0.16		$	0.11
Discontinued operations (B / E)	(0.16		)	(0.16		)	(1.76		)	(0.06		)
Diluted (loss) earnings per share (C / E)	$	(0.11	)	$	(0.17	)	$	(1.60	)	$	0.05

Potential unweighted common shares excluded from the calculation of diluted (loss) earnings per share above:
Restricted stock**	2,109			428			1,259			—
Warrants***	14,317			14,317			14,317			14,317
Total potential common shares excluded	16,426			14,745			15,576			14,317


*	As required by FASB ASC 260-10-45-19, amount excludes all potential common shares for periods when there is a loss from continuing operations.


**	Includes antidilutive share-based awards as well as performance-based and market conditioned share-based awards that are contingently issuable, but for which the condition for issuance has not been met as of the end of the reporting period.


***	See Note 7 for discussion of the terms and conditions of these potential common shares.

Weighted-average outstanding shares of common stock for the three and nine-months ended June 30, 2016 include the impact of redeemable common stock repurchased as discussed in Note 9.

Strategic Investments

9 Months Ended

Jun. 30, 2016

STRATEGIC INVESTMENTS

NOTE 5: STRATEGIC INVESTMENTS

As of June 30, 2016, we owned 151,948,000 shares, or approximately 31%, of our unconsolidated affiliate Cash Converters International, including a nominal reduction in ownership interest during the three-months ended June 30, 2016 as a result of the issuance of additional Cash Converters International shares. The following tables present summary financial information for Cash Converters International’s most recently reported results as of June 30, 2016 after translation to U.S. dollars:



	December 31,
	2015		2014

	(in thousands)
Current assets	$	176,105	$	200,682
Non-current assets	143,466		157,737
Total assets	$	319,571	$	358,419

Current liabilities	$	68,857	$	75,700
Non-current liabilities	48,263		54,256
Shareholders’ equity:
Equity attributable to owners of the parent	202,450		228,462
Noncontrolling interest	1		1
Total liabilities and shareholders’ equity	$	319,571	$	358,419



	Half Year Ended December 31,
	2015		2014

	(in thousands)
Gross revenues	$	143,575	$	167,206
Gross profit	93,573		104,852
Profit (loss) attributable to:
Owners of the parent	$	11,483	$	(4,717	)
Noncontrolling interest	—		(179		)
Profit (loss) for the year	$	11,483	$	(4,896	)

During the three-months ended June 30, 2016, the fair value of our investment in Cash Converters International declined below its carrying value. We considered the guidance in FASB ASC 320-10-S99-1 in evaluating whether the impairment was other-than-temporary and whether to measure and recognize any other-than-temporary impairment. We noted the primary factors in determining that the decline in fair value was not other-than-temporary were the length of time and the extent to which the market value has been less than cost as well as our intent and ability to hold our investment in Cash Converters International for a period of time sufficient to allow for any anticipated recovery in market value. We do not believe the decline in fair value is other-than-temporary as of June 30, 2016. We continue to monitor the fair value of our investment in Cash Converters International for other-than-temporary impairments in future reporting periods and may record an impairment charge should the fair value of our investment in Cash Converters International remain below its carrying value for an extended period of time. See Note 14 for the fair value and carrying value of our investment in Cash Converters International.

Goodwill and Other Intangible Assets	9 Months Ended
Goodwill and Other Intangible Assets	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 6: GOODWILL AND OTHER INTANGIBLE ASSETS In accordance with FASB ASC 350-20-35, Goodwill — Subsequent Measurement, we test goodwill and intangible assets with an indefinite useful life for potential impairment annually, or more frequently when there are events or circumstances that indicate that it is more likely than not that an impairment exists. During the three-months ended March 31, 2016, we evaluated such events and circumstances and concluded that there were indicators of impairment under FASB ASC 350-20-35-3C. These indicators of impairment primarily included a continued decline in our stock price, as well as negative developments in bad debt experience at our Grupo Finmart segment. We performed a quantitative Step 1 analysis as of February 29, 2016 under FASB ASC 350-20-35 and determined that the fair value of each of our reporting units exceeded their carrying value, with the exception of our Grupo Finmart reporting unit. The fair values of each reporting unit were determined based on a discounted cash flow approach using significant unobservable inputs (Level 3) developed using company-specific information. During the quarter ended March 31, 2016, there were no material changes in the fair values of our U.S. Pawn and Mexico Pawn reporting units as compared to their carrying values. There is no goodwill attributable to our Other International reporting unit. We will further perform our required annual impairment test in the fourth quarter of our fiscal 2016. The Step 1 analysis of our Grupo Finmart reporting unit yielded a valuation of $46.5 million. Under Step 2 of FASB ASC 350-20-35, we compared the fair value of the reporting unit to the fair value of the reporting unit's net assets and determined that all of the goodwill attributable to the Grupo Finmart reporting unit ($73.9 million) should be impaired. This impairment was included in "Loss from discontinued operations, net of tax" in the condensed consolidated statements of operations during the three-months ended March 31, 2016. No other assets held by Grupo Finmart were determined to be impaired as of March 31, 2016. Our Grupo Finmart reporting unit was classified as a discontinued operation held for sale during the three-months ended June 30, 2016 as discussed in Note 2. See Note 3 for additional information regarding goodwill acquired in business combinations.

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Long-term Debt

9 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

LONG-TERM DEBT

NOTE 7: LONG-TERM DEBT

The following table presents our long-term debt instruments outstanding as of June 30, 2016 and 2015 and September 30, 2015:



	June 30, 2016					June 30, 2015					September 30, 2015
	Carrying Amount		Debt (Discount) and (Issuance Costs)			Carrying Amount		Debt (Discount) Premium and (Issuance Costs)			Carrying Amount		Debt (Discount) and (Issuance Costs)

	(in thousands)
Recourse to EZCORP:
2.125% Cash convertible senior notes due 2019	$	195,221	$	(34,779	)	$	184,765	$	(45,235	)	$	187,471	$	(42,529	)
Cash convertible senior notes due 2019 embedded derivative	16,200		—			23,160		—			10,505		—
Non-recourse to EZCORP*:
8.2% Secured foreign currency debt up to $14 million due 2016 (a) (b)	5		(47		)	1,445		(321		)	938		(204		)
14.5% Secured foreign currency debt up to $16 million due 2017 (a)	14,821		—			19,157		—			17,567		—
5.8% Consumer loans facility due 2019 (b)	25,669		(1,085		)	43,900		(2,652		)	40,493		(2,196		)
8.5% Unsecured notes due 2015	—		—			12,404		(114		)	12,330		(42		)
10% Unsecured notes due 2015	—		—			—		—			1,500		—
11% Unsecured notes due 2015	—		—			4,218		—			3,868		—
17% Secured notes due 2015 consolidated from VIEs	—		—			21		—			—		—
10% Unsecured notes due 2016	1,500		—			821		—			1,885		—
12% Secured notes due 2016	—		—			3,216		22			2,928		—
13% Unsecured notes due 2016	—		—			639					1,171		—
15% Unsecured notes due 2016	3,560		—			—		—			233		—
15% Secured notes due 2016 consolidated from VIEs	2,234		—			7,098		—			5,397		—
18% Unsecured notes due 2016	5,389		—			—		—			—		—
10% Unsecured notes due 2017	162		—			—		—			—		—
11% Secured notes due 2017 consolidated from VIEs (c)	29,959		—			66,121		—			56,113		—
12% Secured notes due 2017	2,021		—			—		—			—		—
13.5% Unsecured notes due 2017	4,940		—			—		—			—		—
14.5% Secured notes due 2017 consolidated from VIEs	8,650		—			13,575		—			11,754		—
15% Unsecured notes due 2017	2,114		—			—		—			—		—
12.4% Secured notes due 2020	16,047		(175		)	18,901		(320		)	17,358		(268		)
Total	328,492		(36,086		)	399,441		(48,620		)	371,511		(45,239		)
Less current portion	80,248		—			69,054		22			74,345		—
Total long-term debt	$	248,244	$	(36,086	)	$	330,387	$	(48,642	)	$	297,166	$	(45,239	)

Even though Grupo Finmart debt may be non-recourse to EZCORP, a default on more than $25 million of such debt could constitute an event of default under our Cash Convertible Notes (described below). See "Part II, Item 1A — Risk Factors." Additionally, as of June 30, 2016, Grupo Finmart was classified as held for sale in our condensed consolidated balance sheets. These amounts are included in "Current liabilities held for sale" and "Non-current liabilities held for sale" in our condensed consolidated balance sheets. For further discussion see Note 2.


(a)	Maximum amounts of debt are translated from Mexican pesos to United States dollars as of the most current period end date in which outstanding debt is presented.


(b)	Interest is charged at the Mexican Interbank Equilibrium rate (“TIIE”) plus an applicable margin. The rate presented is as of June 30, 2016.


(c)	Grupo Finmart has entered into foreign exchange forward contracts to mitigate the VIE's currency risk, as described in Notes 15 and 16, and EZCORP has guaranteed the future cash outflows of the forward contracts. See "Part II, Item 1A — Risk Factors."

2.125% Cash Convertible Senior Notes Due 2019

In June 2014 ("Original Issuance Date"), we issued $200 million aggregate principal amount of 2.125% Cash Convertible Senior Notes due 2019 (the “Cash Convertible Notes”). We granted the initial purchasers the option to purchase up to an additional $30 million aggregate principal amount of Cash Convertible Notes. That option was exercised in full on June 27, 2014, and we issued an additional $30 million principal amount of Cash Convertible Notes on July 2, 2014. All of the Cash Convertible Notes were issued pursuant to an indenture dated June 23, 2014 (the "Indenture") by and between us and Wells Fargo Bank, National Association, as the trustee. The Cash Convertible Notes were issued in a private offering and resold under Rule 144A under the Securities Act of 1933. The Cash Convertible Notes pay interest semi-annually in arrears at a rate of 2.125% per annum on June 15 and December 15 of each year, commencing December 15, 2014, and will mature on June 15, 2019 (the "Maturity Date").

Prior to December 15, 2018, the Cash Convertible Notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time prior to the close of business on the second scheduled trading day immediately preceding the Maturity Date. At maturity, the holders of the Cash Convertible Notes will be entitled to receive cash equal to the principal amount of the Cash Convertible Notes plus unpaid accrued interest.

The Cash Convertible Notes are unsubordinated unsecured obligations and rank senior in right of payment to any of our indebtedness that is expressly subordinated in right of payment to the Cash Convertible Notes, equal in right of payment with all of our other unsecured unsubordinated indebtedness, and effectively junior to all debt or other obligations (including trade payables) of our wholly-owned subsidiaries. The Indenture governing the Cash Convertible Notes does not contain any financial covenants.

We incurred transaction costs of approximately $8.8 million related to the issuance of the Cash Convertible Notes, which we recorded as deferred financing costs and have included as a deduction to the corresponding debt liability. Deferred financing costs are being amortized to interest expense using the effective interest method over the expected term of the Cash Convertible Notes.

Under the terms of our Cash Convertible Notes, payment of dividends requires a conversion rate adjustment equal to the conversion rate in effect immediately prior to the open of business on the ex-dividend date for such dividend multiplied by the last reported sale price of the Class A Non-voting Common Stock (“Class A Common Stock”) on the trading day immediately preceding the ex-dividend date for such dividend, divided by the difference between the last reported sale price of the Class A Common Stock on the trading day immediately preceding the ex-dividend date for such dividend and the amount in cash per share we distribute to all or substantially all holders of Class A Common Stock. Should we pay dividends in the future, our certificate of incorporation provides that cash dividends on common stock, when declared, must be declared and paid at the same per share amounts on both classes of stock. Any future determination to pay cash dividends will be at the discretion of our Board of Directors.

Cash Convertible Notes Embedded Derivative

We account for the cash conversion feature of the Cash Convertible Notes as a separate derivative instrument (the “Cash Convertible Notes Embedded Derivative”), which had a fair value of $46.5 million on the issuance date that was recognized as the original issue discount of the Cash Convertible Notes. This original issue discount is being amortized to interest expense over the term of the Cash Convertible Notes using the effective interest method. As of June 30, 2016 and 2015 and September 30, 2015, the Cash Convertible Notes Embedded Derivative was recorded as a non-current liability under "Long-term debt, less current maturities" in our condensed consolidated balance sheets, and will be marked to market in subsequent reporting periods. The classification of the Cash Convertible Notes Embedded Derivative liability as current or non-current on the condensed consolidated balance sheets corresponds with the classification of the net balance of the Cash Convertible Notes as discussed below.

The Cash Convertible Notes are convertible into cash, subject to satisfaction of certain conditions and during the periods described below, based on an initial "Conversion Rate" of 62.2471 shares of Class A Common Stock per $1,000 principal amount of Cash Convertible Notes (equivalent to an initial "Conversion Price" of approximately $16.065 per share of our Class A Common Stock). Upon conversion of a note, we will pay cash based on a daily conversion value calculated on a proportionate basis for each trading day in the applicable 80 trading day observation period as described in the Indenture. The conversion rate will not be adjusted for any accrued and unpaid interest.

Holders may surrender their Cash Convertible Notes for conversion into cash prior to December 15, 2018 only under the following circumstances (the “Early Conversion Conditions”): (1) during any fiscal quarter commencing after the fiscal quarter ending on September 30, 2014 (and only during such fiscal quarter), if the last reported sale price of our Class A Common Stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price, as defined in the Indenture, per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our Class A Common Stock and the conversion rate on such trading day; or (3) upon the occurrence of specified corporate events, as defined in the Indenture. On or after December 15, 2018 until the close of business on the second scheduled trading day immediately preceding the Maturity Date, holders may convert their notes into cash at any time, regardless of the foregoing circumstances.

If a holder elects to convert its Cash Convertible Notes in connection with certain make-whole fundamental changes, as that term is defined in the Indenture, that occur prior to the Maturity Date, we will in certain circumstances increase the conversion rate for Cash Convertible Notes converted in connection with such make-whole fundamental changes by a specified number of shares of Class A Common Stock. In addition, the conversion rate is subject to customary anti-dilution adjustments (for example, certain dividend distributions or tender or exchange offer of our Class A Common Stock).

Upon the occurrence of a fundamental change, as defined in the Indenture, holders may require us to repurchase for cash all or any portion of the then outstanding Cash Convertible Notes at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest.

Impact of Early Conversion Conditions on Financial Statements

As of June 30, 2016, the Cash Convertible Notes were not convertible because the Early Conversion Conditions described above had not been met. Accordingly, the net balance of the Cash Convertible Notes was classified as a non-current liability in our condensed consolidated balance sheets as of June 30, 2016 and 2015 and September 30, 2015. The classification of the Cash Convertible Notes as current or non-current in the condensed consolidated balance sheets is evaluated at each balance sheet date and may change from time to time depending on whether any of the Early Conversion Conditions has been met.

If any of the Early Conversion Conditions is met in any future fiscal quarter, we would classify our net liability under the Cash Convertible Notes as a current liability in the condensed consolidated balance sheets as of the end of that fiscal quarter. If none of the Early Conversion Conditions have been met in a future fiscal quarter prior to the one year period immediately preceding the Maturity Date, we would classify our net liability under the Cash Convertible Notes as a non-current liability in the condensed consolidated balance sheets as of the end of that fiscal quarter. If the note holders elect to convert their Cash Convertible Notes prior to maturity, any unamortized discount and transaction costs will be expensed at the time of conversion. If the entire outstanding principal amount had been converted on June 30, 2016, we would have recorded an expense of $34.8 million associated with the conversion, comprised of $29.5 million of unamortized debt discount and $5.3 million of unamortized debt issuance costs. As of June 30, 2016, none of the note holders had elected to convert their Cash Convertible Notes.

Cash Convertible Notes Hedges

In connection with the issuance of the Cash Convertible Notes, we purchased cash-settled call options (the “Cash Convertible Notes Hedges”) in privately negotiated transactions with certain of the initial purchasers or their affiliates (in this capacity, the “Option Counterparties”). The Cash Convertible Notes Hedges provide us with the option to acquire, on a net settlement basis, approximately 14.3 million shares of our Class A Common Stock at a strike price of $16.065, which is equal to the number of shares of our Class A Common Stock that notionally underlie the Cash Convertible Notes and corresponds to the Conversion Price of the Cash Convertible Notes. The Cash Convertible Notes Hedges have an expiration date that is the same as the Maturity Date of the Cash Convertible Notes, subject to earlier exercise. The Cash Convertible Notes Hedges have customary anti-dilution provisions similar to the Cash Convertible Notes. If we exercise the Cash Convertible Notes Hedges, the aggregate amount of cash we will receive from the option counterparties to the Cash Convertible Notes Hedges will cover the aggregate amount of cash that we would be required to pay to the holders of the converted Cash Convertible Notes, less the principal amount thereof. As of June 30, 2016, we have not purchased any shares under the Cash Convertible Notes Hedges.

The aggregate cost of the Cash Convertible Notes Hedges was $46.5 million (or $21.3 million net of the total proceeds from the Warrants sold, as discussed below). The Cash Convertible Notes Hedges are accounted for as a derivative asset and are recorded in the condensed consolidated balance sheets at their estimated fair value under "Other assets, net." The Cash Convertible Notes Embedded Derivative liability and the Cash Convertible Notes Hedges asset will be adjusted to fair value each reporting period and unrealized gains and losses will be reflected in the condensed consolidated statements of operations. The Cash Convertible Notes Embedded Derivative and the Cash Convertible Notes Hedges are designed to have similar fair values. Accordingly, the changes in the fair values of these instruments are expected to offset and not have a net impact on the condensed consolidated statements of operations. See Note 14 for discussion of fair value of the Cash Convertible Notes Embedded Derivative liability and the Cash Convertible Notes Hedges asset.

The classification of the Cash Convertible Notes Hedges asset as current or long-term on the condensed consolidated balance sheets corresponds with the classification of the Cash Convertible Notes, which is evaluated at each balance sheet date and may change from time to time depending on whether any of the Early Conversion Conditions has been met.

Cash Convertible Notes Warrants

In connection with the issuance of the Cash Convertible Notes, we also sold net-share-settled warrants (the “Warrants”) in privately negotiated transactions with the Option Counterparties for the purchase of up to approximately 14.3 million shares of our Class A Common Stock at a strike price of $20.83 per share, for total proceeds of $25.1 million, net of issuance costs, which was recorded as an increase in stockholders' equity. The Warrants have customary anti-dilution provisions similar to the Cash Convertible Notes. As a result of the Warrants, we will experience dilution to our diluted earnings per share if our average closing stock price exceeds $20.83 for any fiscal quarter. The Warrants expire on various dates from September 2019 through February 2020 and must be settled in net shares of our Class A Common Stock. Therefore, upon expiration of the Warrants, we will issue shares of Class A Common Stock to the purchasers of the Warrants that represent the value by which the price of the Class A Common Stock exceeds the strike price stipulated within the particular warrant agreement. As of June 30, 2016, there were 14.3 million warrants outstanding.

Cash Convertible Notes Interest Expense

Total interest expense attributable to the Cash Convertible Notes for the three-months ended June 30, 2016 and 2015 was $3.9 million and $3.6 million, respectively, comprised of contractual interest expense of $1.2 million and $1.2 million, respectively, and debt discount and deferred financing cost amortization of $2.7 million and $2.4 million, respectively.

Total interest expense attributable to the Cash Convertible Notes for the nine-months ended June 30, 2016 and 2015 was $11.6 million and $11.0 million, respectively, comprised of contractual interest expense of $3.7 million and $3.7 million, respectively, and debt discount and deferred financing cost amortization of $7.9 million and $7.3 million, respectively. The effective interest rate approximates 8% after inclusion of deferred financing costs upon adoption of ASU 2015-03, from the effective interest rate of approximately 7% during fiscal 2015.

As of June 30, 2016, the remaining unamortized issuance discount and costs will be amortized over the next three years assuming no early conversion.

Non-Recourse Debt to EZCORP

Non-recourse debt amounts in the table above represent Grupo Finmart’s third-party debt, including secured notes consolidated from VIEs. Amounts due in Mexican pesos are translated each reporting period. Effective interest rates approximate stated rates. As of June 30, 2016, Grupo Finmart was classified as held for sale and all operations of Grupo Finmart were classified as discontinued operations. For further discussion see Note 2.

Secured Foreign Currency Debt, Secured Notes not Consolidated from VIEs and Unsecured Notes

Foreign currency debt and secured notes (not including secured notes consolidated from VIEs, which are discussed below) are secured by Grupo Finmart's loan portfolio or collateralized cash at Grupo Finmart’s option. As of June 30, 2016 and 2015, Grupo Finmart’s secured foreign currency debt and notes, excluding secured notes consolidated from VIEs, were secured by consumer loans totaling $32.7 million and $35.2 million, respectively, and collateralized cash totaling $1.9 million and $8.6 million, respectively, included in “Current assets held for sale” and “Non-current assets held for sale” in our condensed consolidated balance sheets. All unsecured notes are collateralized with Grupo Finmart’s assets.

During the nine-months ended June 30, 2016, Grupo Finmart issued $6.1 million of 13.5% unsecured notes due September 2016 (repayment term extended through 2017 during the three-months ended March 31, 2016), $6.1 million of 18% unsecured notes due September 2016 and $1.0 million of 15% unsecured notes due January 2017 (net of repayments during the quarter). Amounts of debt issued are stated at exchange rates in effect at time of issuance.

During the nine-months ended June 30, 2016, Grupo Finmart repaid the following amounts of debt that were outstanding as of September 30, 2015: the remaining $0.9 million 8.2% secured foreign currency debt due 2016; $12.3 million 8.5% unsecured notes due 2015; $1.5 million 10% unsecured notes due 2015; $3.9 million 11% unsecured notes due 2015; $2.9 million 12% secured notes due 2016; and $1.2 million 13% unsecured notes due 2016. Such amounts include the impact of foreign exchange effects and amortization of deferred costs. In addition, portions of other debt amounts still outstanding as of June 30, 2016 were repaid.

Notes Consolidated from VIEs

During the year ended September 30, 2014, Grupo Finmart entered into three separate agreements with third party investors and variable interest entities (“VIEs”) to securitize selected loans providing asset backed financing for operations. The VIEs issued promissory notes to the third party first beneficiaries of the VIEs. The debt described below is collateralized by all of the assets of the VIEs as presented in our condensed consolidated balance sheets described in Note 16.

The secured notes consolidated from VIEs contain certain prepayment clauses. Where the collections on consumer loans held by the VIEs are greater than anticipated in future reporting periods, we expect an accelerated repayment of the secured notes. See Note 2 for assets and liabilities of consolidated variable interest entities included in our condensed consolidated balance sheets.

During the nine-months ended June 30, 2016, the VIEs repaid a net $32.4 million of debt that was outstanding as of September 30, 2015, including the impact of foreign exchange effects and amortization of deferred costs.

Consumer Loans Facility Due 2019

On February 17, 2014, Grupo Finmart entered into a new securitization transaction to transfer collection rights of certain eligible consumer loans to a bankruptcy remote trust in exchange for cash as discussed in Note 16.

In addition to the initial net payment of $6.9 million during the six-months ended March 31, 2016, including the impact of foreign exchange effects and amortization of deferred costs, the facility began amortizing at a monthly rate of $1.0 million beginning March 2016, which includes principal and interest at TIIE plus an applicable margin, through maturity of the facility in 2019.

Stock Compensation	9 Months Ended
Stock Compensation	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK COMPENSATION	NOTE 8: STOCK COMPENSATION During fiscal 2015, we granted awards to employees based upon underlying shares that were not issued, and therefore we accounted for these as phantom share-based awards under FASB ASC 718-30. These awards were classified as a current liability and recorded at their fair value of $3.9 million in “Accounts payable, accrued expenses and other current liabilities” in our condensed consolidated balance sheets as of September 30, 2015. During the six-months ended March 31, 2016, we issued sufficient shares to allow treatment of these phantom share-based awards as equity awards under FASB ASC 718-20 and reclassified these awards to "Additional paid-in capital" in our condensed consolidated balance sheets. We continue recognizing compensation costs for these awards based on the original grant date fair value as the fair value of these awards have declined since the issuance and thus there were no incremental compensation costs. See Note 14 for additional information regarding the phantom share-based awards. On May 1, 2010 our Board of Directors approved the adoption of the EZCORP, Inc. 2010 Long-Term Incentive Plan (the “2010 Plan”). The 2010 Plan permits grants of options, restricted stock awards and stock appreciation rights covering up to 1,575,750 shares of our Class A Common Stock plus any shares that become available for issuance under either the 2010 Plan or prior plans as a result of forfeitures or cancellations of awards without delivery of shares or as a result of withholding shares to satisfy tax withholding obligations. In February and March 2015, the Board of Directors and the voting stockholder approved the addition of 643,673 shares and 1,081,200 shares, respectively, to the 2010 Plan. In March 2016, the Board of Directors and the voting stockholder approved the addition of 185,026 shares to the 2010 Plan. In March 2016, we granted 961,718 restricted stock unit awards (exclusive of canceled and replaced awards discussed below) to employees which were allocated based on the October 1, 2015 price of $6.17 per share and 130,000 restricted stock awards to non-employee directors with a grant date fair value of $2.96 per share. The awards granted to employees vest on September 30, 2018 subject to the achievement of certain performance targets. As of June 30, 2016, we considered the achievement of these performance targets probable. The awards granted to non-employee directors vest over two years, 50% on September 30, 2016 and 50% on September 30, 2017. We record compensation costs ratably over the requisite service periods for these awards. In connection with the March 2016 grant discussed above, we canceled 720,000 previously issued restricted stock awards that were subject to vesting based on certain stock price levels and had a grant date fair value of $3.4 million and replaced them with 421,394 performance-based restricted stock awards described above. The cancellation and replacement of these awards was treated as a modification with unrecognized compensation cost from the original awards of $1.5 million plus incremental compensation costs resulting from the modification of $0.8 million recognized over the new requisite service period through September 30, 2018.

Temporary Equity Disclosure [Abstract]

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Temporary Equity and Noncontrolling Interest

9 Months Ended

Jun. 30, 2016

TEMPORARY EQUITY AND NONCONTROLLING INTEREST

NOTE 9: TEMPORARY EQUITY AND NONCONTROLLING INTEREST

The following table provides a summary of the activity in our temporary equity and noncontrolling interest balances during the nine-months ended June 30, 2016 and 2015:



	Common Stock, Subject to Possible Redemption			Redeemable Noncontrolling Interest			Total Temporary Equity			Noncontrolling Interest

	(in thousands)
Balance as of September 30, 2014	$	—		$	22,757		$	22,757		$	—
Sale of additional shares to parent	—			541			541
Issuance of common stock, subject to possible redemption	11,696			—			11,696			—
Net loss attributable to noncontrolling interest	—			(3,230		)	(3,230		)	—
Foreign currency translation adjustment attributable to noncontrolling interest	—			(3,853		)	(3,853		)	—
Amounts reclassified from accumulated other comprehensive loss	—			103			103			—
Balances as of June 30, 2015	$	11,696		$	16,318		$	28,014		$	—

Balances as of September 30, 2015	$	11,696		$	2,532		$	14,228		$	—
Repurchase of redeemable common stock	(11,696		)	—			(11,696		)	—
Acquisition of noncontrolling interest	—			—			—			246
Net loss attributable to noncontrolling interest	—			(4,674		)	(4,674		)	(450		)
Foreign currency translation adjustment attributable to noncontrolling interest	—			(269		)	(269		)	(2		)
Amounts reclassified from accumulated other comprehensive loss	—			1			1			—
Balances as of June 30, 2016	$	—		$	(2,410	)	$	(2,410	)	$	(206	)

Common Stock, Subject to Possible Redemption

On February 19, 2015, we completed the acquisition of 12 pawn stores in Central Texas doing business under the "Cash Pawn" brand. The aggregate purchase price for the acquisition was $16.5 million, comprised of $5.0 million cash and 1,168,456 shares of our Class A Non-voting Common Stock (the "Shares"), valued at $10.01 per share less a $0.2 million "Holding Period Adjustment." The Shares were issued in an unregistered private placement transaction pursuant to Section 4(a)(2) of the Securities Act of 1933 to a small number of related individuals and entities (the "Sellers") who were either "accredited investors" or "sophisticated investors." On the first anniversary of the closing date, the Sellers exercised their right to require us to repurchase the Shares for an aggregate price of $11.8 million (the "Put Option").

The Put Option was not accounted for separately from the Shares and did not require bifurcation. The Shares were accounted for as common stock, subject to possible redemption under FASB ASC 480 Distinguishing Liabilities from Equity and were included in temporary equity in our condensed consolidated balance sheets prior to March 31, 2016. The Holding Period Adjustment was accounted for as a contingent consideration asset under FASB ASC 805 Business Combinations, was adjusted to fair value each reporting period, and was recorded in our condensed consolidated balance sheets at its estimated fair value under "Other assets, net" prior to March 31, 2016. See Note 14 for additional information regarding the Holding Period Adjustment.

Grupo Finmart

On January 30, 2012, we acquired a 60% interest in Grupo Finmart. On June 30, 2014, we acquired an additional 16% of the ordinary shares outstanding of Grupo Finmart, increasing our ownership percentage to 76%. On August 31, 2015, we acquired an additional 18% of the outstanding ordinary shares of Grupo Finmart, increasing our ownership percentage to 94%. The holders of the remaining 6% of the outstanding ordinary shares of Grupo Finmart have the right, exercisable once in fiscal 2016 and once in fiscal 2017, to require us to purchase their remaining shares at a purchase price based on an independent valuation of the business. See Note 2 for discussion of our classification of Grupo Finmart as held for sale and Note 18 for discussion of the definitive agreement to sell the business entered into effective July 1, 2016.

Noncontrolling Interest

During the nine-months ended June 30, 2016, a consolidated subsidiary included in the Other International segment began operations in building an IT marketing platform to provide targeted solutions for our pawn customers. The noncontrolling interest is attributable to the 40% of this subsidiary held by the minority shareholder.

Income Taxes	9 Months Ended
Income Taxes	Jun. 30, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 10: INCOME TAXES The effective tax rate from continuing operations for the three and nine-months ended June 30, 2016 was 27% and 57%, respectively, of income (loss) from continuing operations before income taxes compared to 79% and 46%, respectively, for the three and nine-months ended June 30, 2015. The increase in effective tax rate was primarily the result of second quarter return to provision adjustments. In March 2016, we received $34.2 million as a result of the carryback of fiscal 2015 tax net operating losses.

Contingencies

9 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES

NOTE 11: CONTINGENCIES

We are involved in various claims, suits, investigations and legal proceedings, including those described below. We are unable to determine the ultimate outcome of any current litigation or regulatory actions. An unfavorable outcome could have a material adverse effect on our financial condition, results of operations or liquidity. We have not recorded a liability for any of these matters as of June 30, 2016 because we do not believe at this time that any loss is probable or that the amount of any probable loss can be reasonably estimated. The following is a description of significant proceedings.

Shareholder derivative litigation — On July 28, 2014, Lawrence Treppel, a purported holder of Class A Non-voting Common Stock, filed a derivative action in the Court of Chancery of the State of Delaware styled Treppel v. Cohen, et al. (C.A. No. 9962-VCP). The complaint, as originally filed and as amended on September 23, 2014, names as defendants Phillip E. Cohen, the beneficial owner of all of our outstanding Class B Voting Common Stock; several current and former members of our Board of Directors (Joseph J. Beal, Sterling B. Brinkley, John Farrell, Pablo Lagos Espinosa, William C. Love, Thomas C. Roberts and Paul E. Rothamel); three entities controlled by Mr. Cohen (MS Pawn Limited Partnership, the record holder of our Class B Voting Common Stock; MS Pawn Corporation, the general partner of MS Pawn Limited Partnership; and Madison Park LLC); and EZCORP, Inc., as nominal defendant. The amended complaint asserts the following claims:


•	Claims against the current and former Board members for breach of fiduciary duties and waste of corporate assets in connection with the Board’s decision to enter into advisory services agreements with Madison Park from October 2004 to June 2014 (Counts I and II, respectively);


•	Claims against Mr. Cohen and MS Pawn Limited Partnership for aiding and abetting the breaches of fiduciary duties relating to the advisory services agreements with Madison Park (Count III); and


•	Claims against Mr. Cohen and Madison Park for unjust enrichment for payments under the advisory services agreements (Count IV).

The plaintiff seeks (a) recovery for the Company in the amount of the damages the Company has sustained as a result of the alleged breach of fiduciary duties, waste of corporate assets and aiding and abetting, (b) disgorgement by Mr. Cohen and Madison Park of the benefits they received as a result of the related party transactions and (c) reimbursement of costs and expenses, including reasonable attorney’s fees.

On November 13, 2014, pursuant to the parties’ stipulation, the Court dismissed the action as to Mr. Brinkley, Mr. Rothamel and Mr. Lagos.

The remaining defendants filed motions to dismiss, and a hearing on those motions was held before the Court on September 8, 2015. Prior to that hearing, the plaintiff proposed a dismissal without prejudice for the claims against Mr. Beal, Mr. Love and Mr. Farrell. Those defendants continued to seek a dismissal with prejudice that would bind all potential plaintiffs. On January 15, 2016, the Court issued an opinion dismissing the action as to Mr. Beal, Mr. Love and Mr. Farrell with prejudice only as to the plaintiff.

On January 25, 2016, the Court issued a separate opinion granting in part and denying in part the motions to dismiss filed by the remaining defendants. Specifically, the Court granted the motion to dismiss Count IV (unjust enrichment) for failure to state a claim. The Court also dismissed Count III (aiding and abetting) as to Mr. Cohen, but interpreted Count I (breach of fiduciary duty) to state a claim against Mr. Cohen and MS Pawn, as well as Mr. Roberts. The Court otherwise denied the motions to dismiss, including the motion to dismiss Count III (aiding and abetting) against MS Pawn.

On February 4, 2016, the remaining defendants filed an Application for Certification of Interlocutory Appeal, which the plaintiff opposed on February 15, 2016, and the Court set a hearing on the application. On February 22, 2016, the Court denied the Application for Certification of Interlocutory Appeal and provided the plaintiff the opportunity to amend its complaint to add a fiduciary-duty claim as to Mr. Cohen and Madison Park, staying proceedings pending a ruling from the Delaware Supreme Court. After the Application for Certification of Interlocutory Appeal was denied, Mr. Roberts, MS Pawn Corporation and MS Pawn Limited Partnership filed notices of appeal from the interlocutory opinion and order denying the motions to dismiss. On March 10, 2016, the Delaware Supreme Court denied those petitions for an interlocutory appeal.

On March 4, 2016, the plaintiff filed a Second Amended Derivative Complaint against Mr. Roberts, Mr. Cohen, Madison Park, MS Pawn Corporation and MS Pawn Limited Partnership with EZCORP, Inc., as nominal defendant. The case has now moved into the discovery stage.

We intend to continue to defend vigorously against the claims asserted in this lawsuit. Although the lawsuit does not seek relief against the Company, we have certain indemnification obligations to the other defendants (including Madison Park and Mr. Cohen), which obligations include the payment of attorney’s fees in advance of the outcome. We cannot predict the outcome of this lawsuit, or the amount of time and expense that will be required to resolve it.

Federal securities litigation (SDNY) — On August 22, 2014, Jason Close, a purported holder of Class A Non-voting Common Stock, for himself and on behalf of other similarly situated holders of Class A Non-voting Common Stock, filed a lawsuit in the United States District Court for the Southern District of New York styled Close v. EZCORP, Inc., et al. (Case No. 1:14-cv-06834-ALC). The complaint names as defendants EZCORP, Inc., Paul E. Rothamel (our former chief executive officer) and Mark Kuchenrither (our former chief financial officer and former chief operating officer) and asserts violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. In general, the complaint alleges that the implementation of certain strategic and growth initiatives were less successful than represented by the defendants, that certain of the Company’s business units and investments were not performing as well as represented by the defendants and that, as a result, the defendants’ disclosures and statements about the Company’s business and operations were materially false and misleading at all relevant times.

On October 17, 2014, the Automotive Machinists Pension Plan, also purporting to be the holder of Class A Non-voting Common Stock and acting for itself and on behalf of other similarly situated holders of Class A Non-voting Common Stock, filed a lawsuit in the United Stated District Court for the Southern District of New York styled Automotive Machinists Pension Plan v. EZCORP, Inc., et al. (Case No. 1:14-cv-8349-ALC). The complaint names EZCORP, Inc., Mr. Rothamel and Mr. Kuchenrither as defendants, but also names Mr. Cohen and MS Pawn Limited Partnership. The complaint likewise asserts violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as well as Rule 10b-5 promulgated thereunder, alleging generally that (1) EZCORP and the officer defendants (Mr. Rothamel and Mr. Kuchenrither) issued false and misleading statements and omissions concerning the business and prospects, and compliance history, of the Company’s online lending operations in the U.K. and the nature of the Company’s consulting relationship with entities owned by Mr. Cohen and the process the Board of Directors used in agreeing to it, and (2) Mr. Cohen and MS Pawn Limited Partnership, as controlling persons of EZCORP, participated in the preparation and dissemination of the Company’s disclosures and controlled the Company’s business strategy and activities.

On October 21, 2014, the plaintiff in the Automotive Machinists Pension Plan action filed a motion to consolidate the Close action and the Automotive Machinists Pension Plan action and to appoint the Automotive Machinists Pension Plan as the lead plaintiff. On November 18, 2014, the court consolidated the two lawsuits under the caption In Re EZCORP, Inc. Securities Litigation (Case No. 1:14-cv-06834-ALC), and on January 26, 2015, appointed the lead plaintiff and lead counsel.

On March 12, 2015, the lead plaintiff filed a Consolidated Amended Class Action Complaint (the "Amended Complaint"). The Amended Complaint asserts violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as well as Rule 10b-5 promulgated thereunder, alleging generally that:


•	EZCORP and the officer defendants (Mr. Rothamel and Mr. Kuchenrither) issued false and misleading statements and omissions regarding the Company's online lending operations in the U.K. (Cash Genie) and Cash Genie's compliance history;


•	EZCORP and the officer defendants issued false and misleading statements and omissions regarding the nature of the Company's consulting relationship with Madison Park LLC (as entity owned by Mr. Cohen) and the process the Board of Directors used in agreeing to it;


•	EZCORP's financial statements were false and misleading, and violated GAAP and SEC rules and regulations, by failing to properly recognize impairment charges with respect to the Company's investment in Albemarle & Bond; and


•	Mr. Cohen and MS Pawn Limited Partnership, as controlling persons of EZCORP, were aware of and controlled the Company's alleged false and misleading statements and omissions.

On April 27 2015, the defendants filed motions to dismiss, and the parties submitted their respective supporting and opposing briefs. On March 31, 2016, the Court granted in part and denied in part the defendants' motions to dismiss. Specifically, it dismissed the Section 10(b) and Rule 10b-5 claims insofar as they were based on (1) the alleged misstatements about the nature of and approval process related to the Company's consulting relationship with Madison Park, (2) the alleged misstatements regarding the impairment of the Company's investment in Albemarle & Bond, and (3) some of the alleged misstatements about Cash Genie. The Section 10(b) and Rule 10b-5 claims survived the motions to dismiss insofar as they were based on certain alleged misstatements about Cash Genie. The Section 20(a) claims also survived the motions to dismiss. The case has now moved into the discovery stage.

We cannot predict the outcome of the litigation, but we intend to continue to defend vigorously against all allegations and claims.

Federal Securities Litigation (WDT) — On July 20, 2015, Wu Winfred Huang, a purported holder of Class A Non-voting Common Stock, for himself and on behalf of other similarly situated holders of Class A Non-voting Common Stock, filed a lawsuit in the United States District Court for the Western District of Texas styled Huang v. EZCORP, Inc., et al. (Case No. 1:15-cv-00608-SS). The complaint names as defendants EZCORP, Inc., Stuart I. Grimshaw (our chief executive officer) and Mark E. Kuchenrither (our former chief financial officer) and asserts violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The original complaint related to the Company’s announcement on July 17, 2015 that it will restate the financial statements for fiscal 2014 and the first quarter of fiscal 2015, and alleged generally that the Company issued materially false or misleading statements concerning the Company, its finances, business operations and prospects and that the Company misrepresented the financial performance of the Grupo Finmart business.

On August 14, 2015, a substantially identical lawsuit, styled Rooney v. EZCORP, Inc., et al. (Case No. 1:15-cv-00700-SS) was also filed in the United States District Court for the Western District of Texas. On September 28, 2015, the plaintiffs in these 2 lawsuits filed an agreed stipulation to be appointed co-lead plaintiffs and agreed that their two actions should be consolidated. On November 3, 2015, the Court entered an order consolidating the two actions under the caption In re EZCORP, Inc. Securities Litigation (Master File No. 1:15-cv-00608-SS), and appointed the two plaintiffs as co-lead plaintiffs, with their respective counsel appointed as co-lead counsel.

On January 11, 2016, the plaintiffs filed an Amended Class Action Complaint (the "Amended Complaint"). In the Amended Complaint, the plaintiffs seek to represent a class of purchasers of our Class A Common Stock between November 6, 2015 and October 20, 2015. The Amended Complaint asserts that the Company and Mr. Kuchenrither violated Section 10(b) of the Securities Exchange Act and Rule 10b-5, issued materially false or misleading statements throughout the proposed class period concerning the Company and its internal controls, specifically regarding the financial performance of Grupo Finmart. The plaintiffs also allege that Mr. Kuchenrither, as a controlling person of the Company, violated Section 20(a) of the Securities Exchange Act. The Amended Complaint does not assert any claims against Mr. Grimshaw. On February 25, 2016, defendants filed a motion to dismiss the lawsuit. The plaintiff filed an opposition to the motion to dismiss on April 11, 2016, and the defendants filed their reply on May 11, 2016. The Court held a hearing on the motion to dismiss on June 22, 2016, and the parties are waiting on the Court's decision.

We cannot predict the outcome of the litigation, but we intend to defend vigorously against all allegations and claims.

SEC Investigation — On October 23, 2014, we received a notice from the Fort Worth Regional Office of the SEC that it was conducting an investigation into certain matters involving EZCORP, Inc. The notice was accompanied by a subpoena, directing us to produce a variety of documents, including all minutes and materials related to Board of Directors and Board committee meetings since January 1, 2009 and all documents and communications relating to our historical advisory services relationship with Madison Park (the business advisory firm owned by Mr. Cohen) and LPG Limited (a business advisory firm owned by Lachlan P. Given, our current Executive Chairman of the Board). The SEC has also issued subpoenas to current and former members of our Board of Directors requesting production of similar documents, as well as to certain third parties, and has conducted interviews with certain individuals. We continue to cooperate fully with the SEC in its investigation.

Segment Information

9 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 12: SEGMENT INFORMATION

We currently report our segments as follows:


•	U.S. Pawn — All pawn activities in the United States


•	Mexico Pawn — All pawn activities in Mexico and other parts of Latin America


•	Other International — Primarily our equity interest in the net income of Cash Converters International and consumer finance activities in Canada

There are no inter-segment revenues, and the amounts below were determined in accordance with the same accounting principles used in our condensed consolidated financial statements. The following tables present operating segment information for the three and nine-months ended June 30, 2016 and 2015, including reclassifications discussed in Note 1 and adjustments to reflect reclassification of all discontinued operations including Grupo Finmart discussed in Note 2.



	Three Months Ended June 30, 2016
	U.S. Pawn			Mexico Pawn			Other International			Total Segments			Corporate Items			Consolidated

	(in thousands)
Revenues:
Merchandise sales	$	79,826		$	14,187		$	1		$	94,014		$	—		$	94,014
Jewelry scrapping sales	10,918			312			—			11,230			—			11,230
Pawn service charges	54,395			8,078			—			62,473			—			62,473
Consumer loan fees and interest	—			—			2,201			2,201			—			2,201
Other revenues	39			157			36			232			—			232
Total revenues	145,178			22,734			2,238			170,150			—			170,150
Merchandise cost of goods sold	50,586			9,554			—			60,140			—			60,140
Jewelry scrapping cost of goods sold	8,845			265			—			9,110			—			9,110
Consumer loan bad debt	—			—			506			506			—			506
Net revenues	85,747			12,915			1,732			100,394			—			100,394
Segment and corporate expenses (income):
Operations	62,733			8,744			1,695			73,172			—			73,172
Administrative	—			—			—			—			14,481			14,481
Depreciation and amortization	2,888			720			56			3,664			2,610			6,274
(Gain) loss on sale or disposal of assets	(51		)	(13		)	—			(64		)	23			(41		)
Interest expense	—			25			—			25			3,911			3,936
Interest income	(1		)	(23		)	—			(24		)	(26		)	(50		)
Equity in net income of unconsolidated affiliate	—			—			(1,694		)	(1,694		)	—			(1,694		)
Other expense (income)	—			759			—			759			(259		)	500
Segment contribution	$	20,178		$	2,703		$	1,675		$	24,556
Income from continuing operations before income taxes										$	24,556		$	(20,740	)	$	3,816



	Three Months Ended June 30, 2015
	U.S. Pawn			Mexico Pawn			Other International			Total Segments			Corporate Items			Consolidated

	(in thousands)
Revenues:
Merchandise sales	$	77,126		$	15,447		$	564		$	93,137		$	—		$	93,137
Jewelry scrapping sales	9,614			886			88			10,588			—			10,588
Pawn service charges	49,609			7,990			—			57,599			—			57,599
Consumer loan fees and interest	—			—			2,708			2,708			—			2,708
Other revenues	162			274			151			587			—			587
Total revenues	136,511			24,597			3,511			164,619			—			164,619
Merchandise cost of goods sold	50,083			11,027			350			61,460			—			61,460
Jewelry scrapping cost of goods sold	7,648			867			65			8,580			—			8,580
Consumer loan bad debt	—			—			771			771			—			771
Net revenues	78,780			12,703			2,325			93,808			—			93,808
Segment and corporate expenses (income):
Operations	58,902			10,801			1,752			71,455			—			71,455
Administrative	—			—			—			—			16,860			16,860
Depreciation and amortization	3,707			1,097			160			4,964			2,573			7,537
Loss (gain) on sale or disposal of assets	60			7			(1		)	66			16			82
Restructuring	—			—			—			—			37			37
Interest expense	3			7			—			10			3,773			3,783
Interest income	(10		)	(30		)	—			(40		)	(44		)	(84		)
Equity in net income of unconsolidated affiliate	—			—			(1,822		)	(1,822		)	—			(1,822		)
Other (income) expense	12			352			(10		)	354			(576		)	(222		)
Segment contribution	$	16,106		$	469		$	2,246		$	18,821
Loss from continuing operations before income taxes										$	18,821		$	(22,639	)	$	(3,818	)



	Nine Months Ended June 30, 2016
	U.S. Pawn				Mexico Pawn			Other International			Total Segments			Corporate Items			Consolidated

	(in thousands)
Revenues:
Merchandise sales	$	266,560			$	45,376		$	5		$	311,941		$	—		$	311,941
Jewelry scrapping sales	32,117				1,493			21			33,631			—			33,631
Pawn service charges	169,630				23,567			—			193,197			—			193,197
Consumer loan fees and interest	—				—			6,603			6,603			—			6,603
Other revenues	281			—	231			36			548			—			548
Total revenues	468,588				70,667			6,665			545,920			—			545,920
Merchandise cost of goods sold	164,288				30,442			1			194,731			—			194,731
Jewelry scrapping cost of goods sold	27,033				1,222			16			28,271			—			28,271
Consumer loan bad debt	—				—			1,549			1,549			—			1,549
Net revenues	277,267				39,003			5,099			321,369			—			321,369
Segment and corporate expenses (income):
Operations	187,518				28,961			4,967			221,446			—			221,446
Administrative	—				—			—			—			50,085			50,085
Depreciation and amortization	9,489				2,285			163			11,937			8,485			20,422
Loss on sale or disposal of assets	502				116			—			618			23			641
Restructuring	982				543			202			1,727			183			1,910
Interest expense	125				103			—			228			11,786			12,014
Interest income	(2		)		(23		)	—			(25		)	(41		)	(66		)
Equity in net income of unconsolidated affiliate	—				—			(5,626		)	(5,626		)	—			(5,626		)
Other expense	—				808			3			811			4			815
Segment contribution	$	78,653			$	6,210		$	5,390		$	90,253
Income from continuing operations before income taxes											$	90,253		$	(70,525	)	$	19,728



	Nine Months Ended June 30, 2015
	U.S. Pawn			Mexico Pawn			Other International			Total Segments			Corporate Items			Consolidated

	(in thousands)
Revenues:
Merchandise sales	$	259,040		$	49,910		$	1,678		$	310,628		$	—		$	310,628
Jewelry scrapping sales	44,012			3,210			299			47,521			—			47,521
Pawn service charges	158,961			23,035			—			181,996			—			181,996
Consumer loan fees and interest	—			—			7,517			7,517			—			7,517
Other revenues	570			783			694			2,047			—			2,047
Total revenues	462,583			76,938			10,188			549,709			—			549,709
Merchandise cost of goods sold	170,190			35,191			1,049			206,430			—			206,430
Jewelry scrapping cost of goods sold	34,444			2,948			217			37,609			—			37,609
Consumer loan bad debt	—			—			2,197			2,197			—			2,197
Net revenues	257,949			38,799			6,725			303,473			—			303,473
Segment and corporate expenses (income):
Operations	176,329			31,727			5,279			213,335			—			213,335
Administrative	—			—			—			—			44,212			44,212
Depreciation and amortization	10,766			3,442			513			14,721			7,727			22,448
Loss (gain) on sale or disposal of assets	77			264			(1		)	340			385			725
Restructuring	—			—			—			—			763			763
Interest expense	16			9			—			25			12,431			12,456
Interest income	(41		)	(54		)	—			(95		)	(128		)	(223		)
Equity in net income of unconsolidated affiliate	—			—			(338		)	(338		)	—			(338		)
Other expense (income)	12			1,072			—			1,084			(131		)	953
Segment contribution	$	70,790		$	2,339		$	1,272		$	74,401
Income from continuing operations before income taxes										$	74,401		$	(65,259	)	$	9,142

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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ALLOWANCE FOR LOSSES AND CREDIT QUALITY OF CONSUMER LOANS

Allowance for Losses and Credit Quality of Consumer Loans

9 Months Ended

Jun. 30, 2016

Receivables [Abstract]

NOTE 13: ALLOWANCE FOR LOSSES AND CREDIT QUALITY OF CONSUMER LOANS

Grupo Finmart customers obtain installment loans with a series of payments due over the stated term, which can be as long as four years. We recognize consumer loan interest related to loans we originate based on the percentage of consumer loans made that we believe to be collectible, and reserve the percentage of interest we expect not to collect, over the period in which payments are expected to be received under the effective interest method.

Loans to Grupo Finmart customers whose employment is continuing are referred to as “in-payroll” loans, while loans to Grupo Finmart customers whose employment is discontinued are referred to as “out-of-payroll” loans. A customer is generally considered to have discontinued their employment if they are no longer employed by the employer that is responsible for the payroll withholding. We do not reclassify non-performing loans to performing status if there are subsequent collections on the non-performing loans. We establish reserves for Grupo Finmart loans as follows:


•	We reserve 100% of non-performing loans, which for this purpose we consider to be:


◦	Out-of-payroll loans for which Grupo Finmart is not receiving payments; and


◦	In-payroll loans for which Grupo Finmart has not received any payments for 180 consecutive days.


•	We also establish additional reserves on loan principal and accrued interest reserves for performing loans based on historical experience.

When we reserve 100% of a Grupo Finmart loan, we charge the loan principal to consumer loan bad debt expense, reduce interest revenue by the amount of unpaid interest theretofore accrued on the loan and cease accruing interest revenue. Future collections are recorded as a reduction of consumer loan bad debt expense (in the case of written-off principal) and an increase in consumer loan fee revenue (in the case of written-off accrued interest) after principal has been recovered. Long-term unsecured consumer loan bad debt expense is included in "Loss from discontinued operations, net of tax" in our condensed consolidated statements of operations.

Grupo Finmart provides an allowance for losses on performing, in-payroll loans and related interest receivable based on historical collection experience. Changes in the principal and interest receivable valuation allowances are charged to "Loss from discontinued operations, net of tax" in our condensed consolidated statements of operations.

The following table presents changes in the allowance for credit losses, as well as the recorded investment in our financing receivables by portfolio segment for the periods presented and excludes items such as non-sufficient funds fees, repossession fees, auction fees and interest:



Description	Allowance Balance at Beginning of Period		Charge-offs			Recoveries		Provision (Benefit)			Translation Adjustment			Allowance Balance at End of Period (a)		Financing Receivable at End of Period (a)

	(in thousands)
Unsecured short-term consumer loans: (b)
Three Months Ended June 30, 2016	$	8,459	$	(928	)	$	653	$	249		$	(639	)	$	7,794	$	9,946
Three Months Ended June 30, 2015	12,217		(7,159		)	3,160		4,129			593			12,940		29,214
Nine Months Ended June 30, 2016	11,498		(5,157		)	2,862		(251		)	(1,158		)	7,794		9,946
Nine Months Ended June 30, 2015	14,645		(23,239		)	9,946		11,987			(399		)	12,940		29,214
Secured short-term consumer loans: (c)
Three Months Ended June 30, 2016	$	—	$	—		$	—	$	—		$	—		$	—	$	—
Three Months Ended June 30, 2015	816		(9,983		)	9,135		752			—			720		5,464
Nine Months Ended June 30, 2016	2,004		(2,229		)	436		(211		)	—			—		—
Nine Months Ended June 30, 2015	1,049		(37,375		)	33,872		3,174			—			720		5,464
Unsecured long-term consumer loans: (a)
Three Months Ended June 30, 2016	$	69,599	$	(1,021	)	$	—	$	5,951		$	(4,780	)	$	69,749	$	141,158
Three Months Ended June 30, 2015	44,721		(2,894		)	255		2,855			(1,228		)	43,709		163,167
Nine Months Ended June 30, 2016	50,645		(2,234		)	—		26,185			(4,847		)	69,749		141,158
Nine Months Ended June 30, 2015	38,087		(3,162		)	255		14,518			(5,989		)	43,709		163,167


(a)	These amounts are included in "Current assets held for sale" and "Non-current assets held for sale" in our condensed consolidated balance sheets and pertain to Grupo Finmart consumer loans. See Note 2 for further detail on discontinued operations.


(b)	No aging allowance disclosure provided for these amounts as our policy is to charge-off all amounts on the first day after the due date. These amounts primarily include activity pertaining to our Canadian operations in the Other International segment and are included in "Prepaid expenses and other current assets" in our condensed consolidated balance sheets.


(c)	As a result of our discontinuance of USFS, our secured short-term consumer loan balance was reduced to zero as of December 31, 2015. As such, no further aging allowance disclosure has been provided for these amounts. See Note 2 for further detail on discontinued operations. These amounts are included in "Prepaid expenses and other current assets" in our condensed consolidated balance sheets.

The following table presents an aging analysis of past due financing receivables held by Grupo Finmart and included in "Current assets held for sale" and "Non-current assets held for sale" in our condensed consolidated balance sheets:



	Days Past Due								Total Past Due		Current Receivable		Translation Adjustment		Total Financing Receivable		Allowance Balance		Recorded Investment > 90 Days Accruing
	1-30		31-60		61-90		>90		Total Past Due		Current Receivable		Translation Adjustment		Total Financing Receivable		Allowance Balance		Recorded Investment > 90 Days Accruing

	(in thousands)
Unsecured long-term consumer loans:
June 30, 2016
Performing loans	$	4,083	$	1,705	$	1,591	$	2,723	$	10,102	$	65,066	$	—	$	75,168	$	3,759	$	2,723
Non-performing loans	841		683		918		61,051		63,493		2,497		—		65,990		65,990		—
	$	4,924	$	2,388	$	2,509	$	63,774	$	73,595	$	67,563	$	—	$	141,158	$	69,749	$	2,723
June 30, 2015
Performing loans	$	10,448	$	6,038	$	2,627	$	3,689	$	22,802	$	102,072	$	828	$	125,702	$	6,244	$	3,689
Non-performing loans	485		484		825		34,006		35,800		1,665		—		37,465		37,465		—
	$	10,933	$	6,522	$	3,452	$	37,695	$	58,602	$	103,737	$	828	$	163,167	$	43,709	$	3,689
September 30, 2015
Performing loans	$	6,783	$	6,179	$	6,776	$	5,766	$	25,504	$	87,272	$	—	$	112,776	$	5,128	$	5,766
Non-performing loans	553		701		613		41,670		43,537		1,980		—		45,517		45,517		—
	$	7,336	$	6,880	$	7,389	$	47,436	$	69,041	$	89,252	$	—	$	158,293	$	50,645	$	5,766

Fair Value Measurements

9 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 14: FAIR VALUE MEASUREMENTS

In accordance with FASB ASC 820-10, our assets and liabilities discussed below are classified in one of the following three categories based on the inputs used to develop their fair values:


•	Level 1: Quoted market prices in active markets for identical assets or liabilities


•	Level 2: Other observable market-based inputs or unobservable inputs that are corroborated by market data


•	Level 3: Unobservable inputs that are not corroborated by market data

Recurring Fair Value Measurements

The tables below present our financial assets (liabilities) that were measured at fair value on a recurring basis as of June 30, 2016 and 2015 and September 30, 2015:



	June 30, 2016			Fair Value Measurements Using
Financial assets (liabilities)	June 30, 2016			Level 1		Level 2			Level 3

	(in thousands)
Foreign currency forwards	$	7,044		$	—	$	7,044		$	—
Cash Convertible Notes Hedges	16,200			—		16,200			—
Cash Convertible Notes Embedded Derivative	(16,200		)	—		(16,200		)	—
Net financial assets	$	7,044		$	—	$	7,044		$	—

	June 30, 2015			Fair Value Measurements Using
Financial assets (liabilities)	June 30, 2015			Level 1		Level 2			Level 3

	(in thousands)
Foreign currency forwards	$	11,273		$	—	$	11,273		$	—
Holding Period Adjustment	47			—		47			—
Cash Convertible Notes Hedges	23,160			—		23,160			—
Cash Convertible Notes Embedded Derivative	(23,160		)	—		(23,160		)	—
Contingent consideration	(2,836		)	—		—			(2,836		)
Net financial assets (liabilities)	$	8,484		$	—	$	11,320		$	(2,836	)

	September 30, 2015			Fair Value Measurements Using
Financial assets (liabilities)	September 30, 2015			Level 1		Level 2			Level 3

	(in thousands)
Foreign currency forwards	$	14,169		$	—	$	14,169		$	—
Holding Period Adjustment	4			—		4			—
Cash Convertible Notes Hedges	10,505			—		10,505			—
Cash Convertible Notes Embedded Derivative	(10,505		)	—		(10,505		)	—
Phantom share-based awards	(3,932		)	—		—			(3,932		)
Contingent consideration	(2,601		)	—		—			(2,601		)
Net financial assets (liabilities)	$	7,640		$	—	$	14,173		$	(6,533	)

We measured the value of the forward currency forwards using Level 2 inputs such as estimations of expected cash flows, appropriately risk-adjusted discount rates and available observable inputs (term of the forward, notional amount, discount rates based on local and foreign rate curves, and a credit value adjustment to consider the likelihood of nonperformance). Forward contracts were recorded in the condensed consolidated balance sheets under “Current assets held for sale” and "Non-current assets held for sale."

We measured the fair value of the Holding Period Adjustment using an option pricing model based on observable Level 1 and Level 2 inputs such as conversion price of underlying shares, current share price, implied volatility, risk free interest rate and other factors. The Holding Period Adjustment was recorded in the condensed consolidated balance sheets under "Other assets, net" and had no value as of June 30, 2016.

We measured the fair value of the Cash Convertible Notes Hedges and the Cash Convertible Notes Embedded Derivative using an option pricing model based on observable Level 1 and Level 2 inputs such as conversion price of underlying shares, current share price, implied volatility, risk free interest rate and other factors. The Cash Convertible Notes Hedges were recorded in the condensed consolidated balance sheets under “Other assets, net.” The Cash Convertible Notes Embedded Derivative was recorded in the condensed consolidated balance sheets under “Long-term debt, less current maturities.”

On April 26, 2013, Grupo Finmart purchased 100% of the outstanding shares of Fondo ACH, S.A. de C.V., a specialty consumer finance company. The total purchase price was performance-based and was to be determined over a period of four years from the date of purchase and was initially due on January 2, 2017 based on interest income generated by the acquired portfolios and new loans made through Fondo ACH's contractual relationships. We previously used an income approach to measure the fair value of the contingent consideration using a probability-weighted discounted cash flow approach. Some of the significant inputs used for the valuation were not observable in the market and are thus were Level 3 inputs. Contingent consideration was recorded in the condensed consolidated balance sheets under "Current liabilities held for sale" and "Non-current liabilities held for sale." During the three-months ended June 30, 2016, we negotiated a final settlement amount of the contingent consideration and recorded a valuation adjustment of $1.1 million, included in "Loss from discontinued operations, net of tax" in our condensed consolidated statements of operations, to arrive at the $1.5 million balance of the contingent consideration liability.

During fiscal 2015, we granted awards to employees based upon underlying shares that were not issued, and therefore we accounted for these as phantom share-based awards under FASB ASC 718-30. These awards are recorded in the condensed consolidated balance sheets under “Accounts payable, accrued expenses and other current liabilities” for unvested share-based payment awards. The fair value of fiscal 2015 phantom share-based awards that were estimated using the Monte Carlo simulation model incorporated the closing share price of our Class A Common Stock on the date of grant (considered, for this purpose, to be October 1, 2014), as well as the following assumptions, which we consider to be Level 3 inputs under the fair value hierarchy:



Expected volatility of EZCORP, Inc. Class A Common Stock	49.7	%
Risk-free interest rate	1.9	%
Expected term in years	6
Cost of equity	11.5	%
Dividend yield	—

During the nine-months ended June 30, 2016, we settled and released $0.1 million of phantom share-based awards and reclassified $3.8 million of phantom share-based awards from liability awards to equity awards recorded in the condensed consolidated balance sheets under "Additional paid-in capital" reducing our balance in phantom share-based awards to zero as of March 31, 2016.

There were no transfers in or out of Level 1 or Level 2 for financial assets or liabilities measured at fair value on a recurring basis during the periods presented.

Financial Assets, Temporary Equity and Financial Liabilities Not Measured at Fair Value

Our financial assets, temporary equity and financial liabilities as of June 30, 2016 and 2015 and September 30, 2015 that were not measured at fair value in our condensed consolidated balance sheets, inclusive of Grupo Finmart balances as discussed in Note 2, are as follows:



	Carrying Value			Estimated Fair Value
	June 30, 2016			June 30, 2016		Fair Value Measurement Using
	June 30, 2016			June 30, 2016		Level 1		Level 2		Level 3

	(in thousands)
Financial assets:
Cash and cash equivalents	$	29,380		$	29,380	$	29,380	$	—	$	—
Cash and cash equivalents — discontinued operations*	1,728			1,728		1,728		—		—
Restricted cash	5,000			5,000		5,000		—		—
Restricted cash — discontinued operations*	11,654			11,654		11,654		—		—
Pawn loans	160,269			160,269		—		—		160,269
Consumer loans, net — discontinued operations*	19,905			34,896		—		—		34,896
Pawn service charges receivable, net	29,643			29,643		—		—		29,643
Consumer loan fees and interest receivable, net — discontinued operations*	11,390			11,390		—		—		11,390
Investment in unconsolidated affiliate	57,656			49,194		49,194		—		—
Restricted cash, non-current — discontinued operations*	2,226			2,226		2,226		—		—
Non-current consumer loans, net — discontinued operations*	51,504			90,291		—		—		90,291
	$	380,355		$	425,671	$	99,182	$	—	$	326,489

Temporary equity:
Redeemable noncontrolling interest — discontinued operations*	$	(2,410	)	$	3,109	$	—	$	—	$	3,109

Financial liabilities:
Cash Convertible Notes	$	195,221		$	190,762	$	—	$	190,762	$	—
Foreign currency debt — discontinued operations*	14,826			15,079		—		15,079		—
Consumer loans facility due 2019 — discontinued operations*	25,669			25,894		—		25,894		—
Foreign currency unsecured notes — discontinued operations*	17,665			17,772		—		17,772		—
Foreign currency secured notes — discontinued operations*	18,068			18,722		—		18,722		—
Secured notes consolidated from VIEs — discontinued operations*	40,843			37,779		—		37,779		—
	$	312,292		$	306,008	$	—	$	306,008	$	—



	Carrying Value		Estimated Fair Value
	June 30, 2015		June 30, 2015		Fair Value Measurement Using
	June 30, 2015		June 30, 2015		Level 1		Level 2		Level 3

	(in thousands)
Financial assets:
Cash and cash equivalents	$	113,405	$	113,405	$	113,405	$	—	$	—
Cash and cash equivalents — discontinued operations*	982		982		982		—		—
Restricted cash	218		218		218		—		—
Restricted cash — discontinued operations*	27,797		27,797		27,797		—		—
Pawn loans	144,377		144,377		—		—		144,377
Consumer loans, net — discontinued operations*	36,719		47,605		—		—		47,605
Pawn service charges receivable, net	26,989		26,989		—		—		26,989
Consumer loan fees and interest receivable, net — discontinued operations*	13,595		13,595		—		—		13,595
Investment in unconsolidated affiliate	90,423		81,426		81,426		—		—
Restricted cash, non-current — discontinued operations*	2,978		2,978		2,978		—		—
Non-current consumer loans, net — discontinued operations*	82,739		107,268		—		—		107,268
	$	540,222	$	566,640	$	226,806	$	—	$	339,834

Temporary equity:
Common Stock, subject to possible redemption	$	11,696	$	11,241	$	—	$	—	$	11,241
Redeemable noncontrolling interest — discontinued operations*	16,318		33,297		—		—		33,297
	$	28,014	$	44,538	$	—	$	—	$	44,538

Financial liabilities:
Cash Convertible Notes	$	184,765	$	181,746	$	—	$	181,746	$	—
Foreign currency debt — discontinued operations*	20,602		23,667		—		23,667		—
Consumer loans facility due 2019 — discontinued operations*	43,900		45,843		—		45,843		—
Foreign currency unsecured notes — discontinued operations*	18,082		18,536		—		18,536		—
Foreign currency secured notes — discontinued operations*	22,117		25,639		—		25,639		—
Secured notes consolidated from VIEs — discontinued operations*	86,815		83,640		—		83,640		—
	$	376,281	$	379,071	$	—	$	379,071	$	—



	Carrying Value		Estimated Fair Value
	September 30, 2015		September 30, 2015		Fair Value Measurement Using
	September 30, 2015		September 30, 2015		Level 1		Level 2		Level 3

	(in thousands)
Financial assets:
Cash and cash equivalents	$	56,244	$	56,244	$	56,244	$	—	$	—
Cash and cash equivalents — discontinued operations*	2,880		2,880		2,880		—		—
Restricted cash	144		144		144		—		—
Restricted cash — discontinued operations*	14,993		14,993		14,993		—		—
Pawn loans	159,964		159,964		—		—		159,964
Consumer loans, net — discontinued operations*	31,824		43,731		—		—		43,731
Pawn service charges receivable, net	30,852		30,852		—		—		30,852
Consumer loan fees and interest receivable, net — discontinued operations*	19,105		19,105		—		—		19,105
Investment in unconsolidated affiliate	56,182		56,182		56,182		—		—
Restricted cash, non-current — discontinued operations*	2,883		2,883		2,883		—		—
Non-current consumer loans, net — discontinued operations*	75,824		104,194		—		—		104,194
	$	450,895	$	491,172	$	133,326	$	—	$	357,846

Temporary equity:
Common stock, subject to possible redemption	$	11,696	$	11,438	$	—	$	—	$	11,438
Redeemable noncontrolling interest — discontinued operations*	3,235		5,467		—		—		5,467
	$	14,931	$	16,905	$	—	$	—	$	16,905

Financial liabilities:
Cash Convertible Notes	$	187,471	$	169,050	$	—	$	169,050	$	—
Foreign currency debt — discontinued operations*	18,505		19,851		—		19,851		—
Consumer loans facility due 2019 — discontinued operations*	40,493		40,774		—		40,774		—
Foreign currency unsecured notes — discontinued operations*	20,987		20,477		—		20,477		—
Foreign currency secured notes — discontinued operations*	20,286		22,476		—		22,476		—
Secured notes consolidated from VIEs — discontinued operations*	73,264		68,685		—		68,685		—
	$	361,006	$	341,313	$	—	$	341,313	$	—


*	See Note 1 for discussion of operations discontinued subsequent to the adoption of ASU 2014-08.

Based on the short-term nature of cash and cash equivalents, restricted cash, pawn loans, pawn service charges receivable and consumer loan fees and interest receivable, we estimate that their carrying value approximates fair value. Significant increases or decreases in the underlying assumptions used to value the pawn loans, pawn service charges receivable and consumer loan fees and interest receivable could significantly increase or decrease the fair value estimates disclosed above.

Consumer loans made by Grupo Finmart have an average contractual term of approximately 30 months. We estimated the fair value of the Grupo Finmart consumer loans by applying an income approach (the present value of future cash flows). Key assumptions include an annualized probability of default as well as a discount rate based on the funding rate plus the portfolio liquidity risk. Significant increases or decreases in the underlying assumptions used to value the consumer loans could significantly increase or decrease the fair value estimates disclosed above.

The inputs used to generate the fair value of our investment in unconsolidated affiliate Cash Converters International were considered Level 1 inputs. These inputs are comprised of (a) the quoted stock price on the Australian Stock Exchange multiplied by (b) the number of shares we owned multiplied by (c) the applicable foreign currency exchange rate as of the end of our reporting period. We included no control premium for owning a large percentage of outstanding shares. See Note 5 for discussion of the fair value compared to the carrying value of our investment in Cash Converters International.

The fair value of the redeemable noncontrolling interest as of June 30, 2016 was calculated based on the minority interest percentage of the sale price in the definitive agreement as discussed in Note 18. The fair value of the redeemable noncontrolling interest prior to June 30, 2016 was estimated by applying an income approach based on significant Level 3 inputs that are not observable in the market. Key assumptions include discount rates up to 24%, representing the discount that market participants would consider when estimating the fair value of the noncontrolling interest. Significant increases or decreases in the underlying assumptions used to value the redeemable noncontrolling interest could significantly increase or decrease the fair value estimates disclosed above.

The fair value of the common stock, subject to possible redemption was estimated by applying an income approach. This fair value measurement is based on significant Level 3 inputs that are not observable in the market. Key assumptions include a discount rate of 7%, which approximated the Company’s incremental borrowing rate.

We measured the fair value of our Cash Convertible Notes using quoted price inputs from Bloomberg. The Cash Convertible Notes are not actively traded and thus the price inputs represent a Level 2 measurement. As the Cash Convertible Notes are not actively traded, the quoted price inputs obtained from Bloomberg are highly variable from day to day and thus the fair value estimates disclosed above could significantly increase or decrease.

We utilize credit quality-related zero rate curves, quoted price and yield inputs for Mexican Pesos built by a price vendor authorized by the Comisión Nacional Bancaria y de Valores to determine the fair value measurements of the remaining financial liabilities that are classified as Level 2 measurements.

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Derivative Instruments and Hedging Activities

9 Months Ended

Jun. 30, 2016

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

NOTE 15: DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

See Note 14 for a discussion of the Cash Convertible Notes Hedges and Cash Convertible Notes Embedded Derivative presented below.

During the fiscal years ended September 30, 2015 and 2014, Grupo Finmart entered into cross-currency forward contracts to hedge foreign exchange rate fluctuations in connection with the formation of the VIEs and related transfer of certain loans as described in Note 16. The Company guarantees the future cash outflows of the forward contracts, which are included in the Company’s condensed consolidated balance sheets and adjusted to fair value each reporting period through earnings. As of June 30, 2016, Grupo Finmart is classified as held for sale and all segment operations of Grupo Finmart are classified as discontinued operations. For further discussion see Note 2.

Grupo Finmart received proceeds of $3.6 million, net with the settlement of remaining foreign currency forwards attributable to the cross-border 8.5% unsecured notes due 2015 which were repaid during the three-months ended December 31, 2015.

The following tables set forth certain information regarding our derivative instruments not designated as hedging instruments:



		Fair Value Asset (Liability) of Derivative Instruments
Derivative Instrument	Balance Sheet Location	June 30, 2016		June 30, 2015		September 30, 2015

		(in thousands)
Foreign currency forwards	Current and non-current assets held for sale	7,044		11,273		14,169
Cash Convertible Notes Hedges	Other assets, net	16,200		23,160		10,505
Cash Convertible Notes Embedded Derivative	Long-term debt, less current maturities	(16,200	)	(23,160	)	(10,505	)



		Amount of Unrealized (Loss) Gain on Derivatives
		Three Months Ended June 30,					Nine Months Ended June 30,
Derivative Instrument	Income Statement Location	2016			2015		2016			2015

		(in thousands)
Foreign currency forwards	Loss from discontinued operations, net of tax*	$	(650	)	$	5,846	$	(3,568	)	$	7,710


*	Amount is partially offset by gains and losses caused by related foreign currency fluctuations.

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

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Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities	9 Months Ended
Variable Interest Entities	Jun. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]
VARIABLE INTEREST ENTITIES	NOTE 16: VARIABLE INTEREST ENTITIES The Company performs ongoing qualitative assessments of VIEs it is involved with to determine if it has a controlling financial interest in the VIE and therefore is the VIE’s primary beneficiary. If it is determined to be the primary beneficiary, the Company consolidates the VIE in its condensed consolidated financial statements. Consolidated Variable Interest Entities During the year ended September 30, 2014 and the first quarter of fiscal 2015, Grupo Finmart participated in the formation of three VIEs that purchased Mexican Peso denominated long-term unsecured Mexican consumer loans originated by Grupo Finmart whose borrowers were Mexican government employees at the time of loan origination. During fiscal 2014 and the first quarter of fiscal 2015, Grupo Finmart completed six transfers of consumer loans to various securitization trusts. We consolidate those securitization trusts under the VIE model. Each VIE issued its notes to third party investors and used the related net proceeds to purchase the loans from Grupo Finmart at a premium over their principal amount. We consolidate these VIEs as we have the power to direct the activities that significantly affect each VIE’s economic performance and have the right to receive benefits or the obligation to absorb losses that could potentially be significant to each VIE. We expect to de-consolidate these VIEs in conjunction with the disposition of Grupo Finmart as discussed in Note 2. The first VIE (“VIE C”) was formed in October 2013 as a trust with third party "Investor C" as the purchaser of its Mexican Peso denominated notes and the VIE’s first beneficiary. The second VIE (“VIE B”) was formed in March 2014 (amended in June, September and December 2014) as a trust with "Investor B" as the purchaser of the VIE’s U.S. Dollar denominated notes and the VIE’s first beneficiary. The third VIE (“VIE A”) was formed in June 2014 as a trust with "Investor A" as the purchaser of the VIE’s Mexican Peso denominated notes and the VIE’s first beneficiary. Grupo Finmart is the servicer of the VIEs’ loans. In August 2014, "Investors D" and "E" purchased a portion of VIE A’s notes from Investor A and became additional VIE A first beneficiaries. Each VIEs’ notes are payable solely from the VIE’s assets. Grupo Finmart receives 100% of VIE C and VIE B cash flows and 50% of VIE A cash flows after (1) the VIE’s operating expenses are paid and (2) the VIE's notes are repaid. Grupo Finmart has an option to repurchase VIE A’s loans. VIE A is the only VIE for which Grupo Finmart can be terminated as servicer for reasons other than cause, with termination requiring unanimous first beneficiary approval. Grupo Finmart has entered into foreign exchange forward contracts with a third party to provide U.S. dollars on the payment of Mexican Pesos, and has assigned the rights under those contracts to VIE B to mitigate the risk associated with its U.S. dollar denominated liabilities and Mexican peso denominated assets. EZCORP has guaranteed the future cash outflows under those foreign exchange forward contracts. The assets of the VIEs can be used only to settle obligations of the VIEs. Information about our involvement with VIEs has been aggregated as the VIEs are similar and we believe separate reporting would not provide more useful information. The assets and liabilities of our consolidated VIEs described above are presented in our condensed consolidated balance sheets and are net of intercompany balances which are eliminated in our condensed consolidated financial statements. The loans the VIEs purchased from Grupo Finmart are reflected in our condensed consolidated financial statements at amortized cost based on Grupo Finmart’s pre-transfer basis. We did not recognize any gain or loss as a result of the loan transfer to the VIEs or from the consolidation of the VIEs. The excess of the principal amount of each VIE’s notes payable over the principal amount of the VIE’s loans (this is the unamortized loan premium paid by the VIEs) is to be repaid using a portion of the VIE’s loan interest, as the coupon of the VIE’s loans are greater than the coupon of the VIE’s notes payable. Income (principally, interest and fees on loans) earned by our consolidated VIEs was $3.3 million and $7.3 million for the three-months ended June 30, 2016 and 2015, respectively, and $10.6 million and $27.8 million for the nine-months ended June 30, 2016 and 2015, respectively. Related expenses, consisting primarily of interest expense, foreign exchange losses and consumer loan bad debt expense were $3.4 million and $4.2 million for the three-months ended June 30, 2016 and 2015, respectively, and $9.2 million and $21.2 million for the nine-months ended June 30, 2016 and 2015, respectively. These amounts were included in "Loss from discontinued operations, net of tax" in the condensed consolidated statements of operations and do not include intercompany transactions which are eliminated in our condensed consolidated financial statements. Grupo Finmart Securitization Trust On February 17, 2014, Grupo Finmart entered into a new securitization transaction to transfer collection rights of certain eligible consumer loans to a bankruptcy remote trust in exchange for cash. The trust received financing as a result of the issuance of debt securities and delivered the proceeds of the financing to Grupo Finmart. The 5.8% consumer loans facility due 2019 debt securities pertaining to the Grupo Finmart Securitization Trust are presented in Note 7. Grupo Finmart is the primary beneficiary of the securitization trust because Grupo Finmart has the power to direct the most significant activities of the trust through its role as servicer of all the receivables held by the trust and through its obligation to absorb losses or receive benefits that could potentially be significant to the trust. Consequently, we consolidate the trust. The assets and liabilities of the Grupo Finmart Securitization Trust described above are presented as held for sale in our condensed consolidated balance sheets and are net of intercompany balances which are eliminated in our condensed consolidated financial statements. See to Note 2 for further detail on Grupo Finmart assets and liabilities held for sale. Non-Consolidated Variable Interest Entities The Company historically held a significant variable interest in two VIEs for which it was not the primary beneficiary and, therefore, were not consolidated. Prior to our discontinuance of USFS as discussed in Note 2, we issued letters of credit to enhance the creditworthiness of our customers seeking unsecured loans from unaffiliated lenders. We had no further substantial involvement with such lenders as of December 31, 2015.

Supplemental Consolidated Financial Information

9 Months Ended

Jun. 30, 2016

SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION

NOTE 17: SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION

The following table provides information on net amounts included under "Pawn service charges receivable, net," "Inventory, net" and "Property and equipment, net" in our condensed consolidated balance sheets:



	June 30, 2016			June 30, 2015			September 30, 2015

	(in thousands)
Gross pawn service charges receivable	$	39,688		$	36,237		$	39,877
Allowance for uncollectible pawn service charges receivable	(10,045		)	(9,248		)	(9,025		)
Pawn service charges receivable, net	$	29,643		$	26,989		$	30,852

Gross inventory	$	135,807		$	122,540		$	131,174
Inventory reserves	(5,439		)	(7,257		)	(7,090		)
Inventory, net	$	130,368		$	115,283		$	124,084

Property and equipment, gross	$	210,005		$	246,795		$	208,472
Accumulated depreciation	(148,804		)	(147,442		)	(134,534		)
Property and equipment, net	$	61,201		$	99,353		$	73,938

The above amounts are exclusive of assets held for sale. See Note 13 for information on Grupo Finmart consumer loans included in "Current assets held for sale" and "Non-current assets held for sale" in our condensed consolidated balance sheets and Note 2 for the gross amounts of Grupo Finmart property and equipment included in "Non-current assets held for sale."

Subsequent Events	9 Months Ended
Subsequent Events	Jun. 30, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 18: SUBSEQUENT EVENTS Effective July 1, 2016 we entered into a definitive agreement (the “Purchase Agreement”) with Alpha Holding, S.A. de C.V. (“AlphaCredit”), pursuant to which AlphaCredit will acquire Grupo Finmart ("Acquired Interests"). The aggregate base purchase price for the Acquired Interests is $50.0 million, subject to adjustments. Certain minority holders will have the option to retain their equity interest in Grupo Finmart by entering into a shareholder agreement negotiated with the buyers, in which case the portion of the purchase price attributable to such equity interests would be retained by the buyers. Subject to certain escrow amounts, the adjusted purchase price is payable in cash at closing, unless AlphaCredit does not have financing in place at the time the closing conditions have been satisfied, in which case $25.0 million of the purchase price payable to the Company will be deferred. If the deferred payment is utilized, the deferred purchase price payable to the Company will be increased from $25.0 million to $33.1 million and will be payable in full on the first anniversary of the closing, with certain quarterly payments due. At the closing of the transaction, the intercompany indebtedness owed by Grupo Finmart to certain wholly owned subsidiaries of EZCORP will be restructured into two notes issued by Grupo Finmart and guaranteed by AlphaCredit. Each note will provide for quarterly interest payments and annual principal installments over three years. The note governing the existing Mexican Peso denominated intercompany debt of $8.5 million as of June 30, 2016 will be payable in Mexican Pesos at a 7.5% per annum interest rate, and the note governing the existing U.S. Dollar denominated intercompany debt of $40.2 million as of June 30, 2016 will be payable in U.S. Dollars at a 4% per annum interest rate. The principal balance of these notes will generally be repaid on a schedule approximating 30% during year one, 40% during year two and 30% during year three. Any funding provided by EZCORP or its affiliates to Grupo Finmart between signing and closing will be added to the principal amount of the U.S. Dollar denominated note. The Purchase Agreement contains provisions granting AlphaCredit and the Company the right to terminate the Purchase Agreement for certain reasons, including, among others, if the closing does not occur on or before September 30, 2016. If all conditions have been satisfied by such time other than approval of the transaction by the Mexican Comisión Federal de Competencia (Federal Competition Commission), then such date will be automatically extended to October 31, 2016.

Organization and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. Our management has included all adjustments it considers necessary for a fair presentation. These adjustments are of a normal, recurring nature except for those related to discontinued operations described in Note 2. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying financial statements should be read in conjunction with the condensed consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended September 30, 2015. The balance sheet as of September 30, 2015 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Our business is subject to seasonal variations, and operating results for the three and nine-months ended June 30, 2016 (the "current quarter" and "current nine-months," respectively) are not necessarily indicative of the results of operations for the full fiscal year. To determine if we hold a controlling financial interest in an entity, we first evaluate if we are required to apply the variable interest entity ("VIE") model to the entity; otherwise, the entity is evaluated under the voting interest model. Where we hold current or potential rights that give us the power to direct the activities of a VIE that most significantly impact the VIE's economic performance combined with a variable interest that gives us the right to receive potentially significant benefits or the obligation to absorb potentially significant losses, we have a controlling financial interest in that VIE. Rights held by others to remove the party with power over the VIE are not considered unless one party can exercise those rights unilaterally. Grupo Finmart has completed several transfers of consumer loans to various securitization trusts. We consolidate those securitization entities under the VIE model as described in Note 16. As further discussed in Note 2, we have classified all of the assets and liabilities of these VIEs as held for sale and recast all results of operations as discontinued operations. We account for our investment in our unconsolidated affiliate Cash Converters International using the equity method. There have been no changes in significant accounting policies as described in our Annual Report on Form 10-K for the year ended September 30, 2015, other than those described below.
Use of Estimates and Assumptions	Use of Estimates and Assumptions The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates and judgments, including those related to revenue recognition, inventory, loan loss allowances, long-lived and intangible assets, share-based compensation, income taxes, contingencies and litigation. We base our estimates on historical experience, observable trends and various other assumptions that we believe are reasonable under the circumstances. We use this information to make judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates under different assumptions or conditions.
Recently Adopted and Issued Accounting Pronouncements	Recently Adopted Accounting Policies Simplification of Adjustments to Provisional Amounts Identified During a Measurement Period In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805). This ASU requires reporting entities to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, with the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. A reporting entity should apply the amendment prospectively to adjustments to provisional amounts that occur after the date of adoption. We early adopted ASU 2015-16 during the three-months ended March 31, 2016 to reduce the cost and complexity of accounting for and reporting business combinations. There was no material impact of adopting ASU 2015-16 on our consolidated financial position, results of operations or cash flows. Share-Based Awards with Performance Targets that could be Achieved after the Requisite Service Period In June 2014, the FASB issued ASU 2014-12, Compensation — Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU requires reporting entities to recognize compensation costs for share-based awards with performance targets in the period in which it becomes probable that the performance targets will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. A reporting entity may apply the amendment prospectively or retrospectively. We early adopted ASU 2015-16 during the three-months ended March 31, 2016 and applied the amendments prospectively to all awards granted or modified after the effective date. There was no material impact of adopting ASU 2014-12 on our consolidated financial position, results of operations or cash flows. Classification of Deferred Tax Assets In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. This ASU requires reporting entities to classify deferred income taxes as non-current on the condensed consolidated balance sheets. Deferred income taxes were previously required to be classified as current or non-current on the condensed consolidated balance sheets. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. A reporting entity may apply the amendment prospectively or retrospectively. We early adopted ASU 2015-17 during the three-months ended December 31, 2015 on a retrospective basis. The impact of adopting ASU 2015-17 on our current period condensed consolidated financial statements was the classification of all deferred tax assets as non-current in addition to the reclassification of current "Deferred tax asset, net" to non-current "Deferred tax asset, net" as of June 30, 2015 and September 30, 2015 of $24.4 million and $44.1 million, respectively, within the condensed consolidated balance sheets to conform to the current period presentation. Other than these reclassifications, the adoption of ASU 2015-17 did not have an impact on our consolidated financial position, results of operations or cash flows. Presentation of Debt Issuance Costs In April 2015, the FASB issued ASU 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This ASU requires reporting entities to record costs paid to third parties that are directly related to issuing debt, and that otherwise would not be incurred, as a deduction to the corresponding debt for presentation purposes. In addition, in August 2015, FASB issued ASU 2015-15, Interest — Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements-Amendments to SEC Paragraphs Pursuant to Staff Announcement at the June 18, 2015 Emerging Issues Task Force ("EITF") Meeting. Given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, ASU 2015-15 states the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The provisions of each ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted for each. A reporting entity should apply each amendment retrospectively. We early adopted ASU 2015-03 during the three-months ended December 31, 2015 on a retrospective basis. The impact of adopting ASU 2015-03 on our current period condensed consolidated financial statements was the classification of all deferred financing costs as a deduction to the corresponding debt in addition to the reclassification of deferred financing costs in "Intangible assets, net" to "Long-term debt less current maturities, net" as of June 30, 2015 and September 30, 2015 of $10.4 million and $9.2 million, respectively, within the condensed consolidated balance sheets to conform to the current period presentation. Other than these reclassifications and additional disclosures, the adoption of ASU 2015-03 did not have an impact on our consolidated financial position, results of operations or cash flows. Reporting Discontinued Operations In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) — Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This ASU provides guidance for the reporting of discontinued operations if (1) a component or group of components of an entity meets the criteria in FASB Accounting Standards Codification ("ASC") Paragraph 205-20-45-1E to be classified as held for sale; (2) the component of an entity or group of components of an entity is disposed of by sale; or (3) the component of an entity or group of components of an entity is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). Among other disclosures, ASU 2014-08 requires an entity to present, for each comparative period, the assets and liabilities of a disposal group that includes a discontinued operation separately in the asset and liability sections, respectively, of the statement of financial position. ASU 2014-08 is effective prospectively for (1) all disposals of components that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years; and (2) all businesses or nonprofit activities that, on acquisition, are classified as held for sale that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. There was no impact of adopting ASU 2014-08 on our consolidated financial position, results of operations or cash flows, however subsequent to adoption we have classified our Grupo Finmart segment as held for sale. We have presented our Grupo Finmart segment classified as a discontinued operation as held for sale under ASU 2014-08, including separate presentation of assets and liabilities held for sale in our condensed consolidated balance sheets and separate presentation of cash flows from discontinued operations in our condensed consolidated statements of cash flows, with historical amounts recast to conform to current period presentation. We have presented our operations discontinued prior to adoption of ASU 2014-08 during the three-months ended December 31, 2015 including our U.S. financial services business ("USFS") and our online lending businesses in the United States ("EZOnline") and the United Kingdom ("Cash Genie") under the accounting guidance in effect before the adoption of ASU 2014-08. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU requires financial assets (or groups of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected, among other provisions. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted as of fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A reporting entity should generally apply the amendment on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting periods in which the amendment is effective. We are in the process of evaluating the impact of adopting ASU 2016-13 on our consolidated financial position, results of operations and cash flows. In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. A reporting entity should apply the amendment using transition guidance for each aspect of the ASU. We are in the process of evaluating the impact of adopting ASU 2016-09 on our consolidated financial position, results of operations and cash flows. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments a consensus of the FASB Emerging Issues Task Force. This ASU clarifies what steps are required when assessing whether the economic characteristics and risks of call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts, which is one of the criteria for bifurcating an embedded derivative. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. A reporting entity should apply the amendment modified retrospective basis to existing debt instruments as of the beginning of the fiscal year for which the amendments are effective. We are in the process of evaluating the impact of adopting ASU 2016-06 on our consolidated financial position, results of operations and cash flows. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted based upon guidance issued within the ASU. We are in the process of evaluating the impact of adopting ASU 2016-02 on our consolidated financial position, results of operations and cash flows. In January 2016, the FASB issued ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU makes targeted improvements to the accounting for, and presentation and disclosure of, financial assets and liabilities. The ASU further requires separate presentation of financial assets and financial liabilities by measurement category on the balance sheet or the accompanying notes to the financial statements. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted based upon guidance issued within the ASU. A reporting entity should apply the amendment prospectively, with a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. We are in the process of evaluating the impact of adopting ASU 2016-01 on our consolidated financial position, results of operations and cash flows. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). On August 12, 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) to defer the effective date to December 15, 2017 for annual reporting periods beginning after that date. The FASB also permitted early adoption of the standard, but not before the original effective date of December 15, 2016. The amendments in ASU 2014-09 will be added to the Accounting Standards Codification as Topic 606, Revenue from Contracts with Customers, and will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, as well as some cost guidance in Subtopic 605-35, Revenue Recognition - Construction-Type and Production-Type Contracts. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, the guidance provides that an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. Notably, the existing requirements for the recognition of a gain or loss on the transfer of non-financial assets that are not in a contract with a customer (e.g., assets within the scope of Topic 360, Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles — Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement in ASU 2014-09. The new standard allows for two methods of adoption: (a) full retrospective adoption, meaning the standard is applied to all periods presented, or (b) modified retrospective adoption, meaning the cumulative effect of applying the new standard is recognized as an adjustment to the fiscal 2017 opening retained earnings balance. In March 2016 through May 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Consensuses of the FASB Emerging Issues Task Force and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. ASU 2016-08, 2016-10 and 2016-12 clarify implementation guidance and introduce practical expedients, and are effective upon adoption of ASU 2014-09. We are evaluating the impact that will result from adopting ASU 2014-09 and related ASUs on our consolidated financial position, results of operations, and cash flows.

Organization and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Schedule of error corrections and prior period adjustments

The impact of this revision on the consolidated balance sheets as of June 30 and September 30, 2015 is as follows:



	June 30, 2015
	As Previously Reported		Adjustments			As Revised

	(in thousands)
Income taxes receivable	$	25,535	$	(22,790	)	$	2,745
Income taxes receivable, goodwill and deferred tax asset, net included in assets held for sale	102,126		4,256			106,382
Deferred tax asset, net	35,412		4,157			39,569
Redeemable noncontrolling interest	16,361		(43		)	16,318
Retained earnings	512,694		(14,334		)	498,360



	September 30, 2015
	As Previously Reported		Adjustments			As Revised

	(in thousands)
Income taxes receivable	$	42,057	$	(1,400	)	$	40,657
Income taxes receivable, goodwill and deferred tax asset, net included in assets held for sale	114,861		(5,828		)	109,033
Deferred tax asset, net	33,192		(8,787		)	24,405
Redeemable noncontrolling interest	3,235		(703		)	2,532
Retained earnings	423,137		(15,312		)	407,825

Discontinued Operations and Restructuring (Tables)

9 Months Ended

Jun. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

Assets and liabilities of Groupo Finmart



	Three Months Ended June 30,						Nine Months Ended June 30,
	2016			2015			2016			2015

	(in thousands)
Revenues	$	11,762		$	17,015		$	36,345		$	49,826
Consumer loan bad debt	(6,200		)	(2,835		)	(26,444		)	(14,685		)
Operations expense	(9,506		)	(8,205		)	(27,120		)	(23,602		)
Impairment of goodwill	—			—			(73,921		)	—
Interest expense, net	(3,944		)	(5,617		)	(13,255		)	(19,370		)
Depreciation, amortization and other expenses	(4,580		)	(1,488		)	(6,216		)	(4,126		)
Loss from discontinued operations before income taxes of Grupo Finmart	$	(12,468	)	$	(1,130	)	$	(110,611	)	$	(11,957	)
Income tax benefit	2,746			512			10,439			4,138
Income (loss) from discontinued operations, net of tax of operations discontinued prior to the adoption of ASU 2014-08	589			(8,836		)	(744		)	2,772
Loss from discontinued operations, net of tax	$	(9,133	)	$	(9,454	)	$	(100,916	)	$	(5,047	)

Loss from discontinued operations, net of tax of Grupo Finmart	$	(9,722	)	$	(618	)	$	(100,172	)	$	(7,819	)
Loss from discontinued operations, net of tax of Grupo Finmart attributable to noncontrolling interest	540			290			4,674			2,348
Loss from discontinued operations, net of tax of Grupo Finmart attributable to EZCORP, Inc.	$	(9,182	)	$	(328	)	$	(95,498	)	$	(5,471	)



	June 30, 2016		June 30, 2015		September 30, 2015

	(in thousands)
Cash and cash equivalents	$	1,728	$	982	$	2,880
Restricted cash (1)	11,654		27,797		14,993
Consumer loans, net (1)	19,905		36,719		31,824
Consumer loan fees and interest receivable, net (1)	11,390		13,595		19,105
Prepaid expenses, income taxes and other current assets	5,004		3,752		4,056
Restricted cash, non-current (1)	2,226		2,978		2,883
Goodwill, intangible assets, and property and equipment, net	10,304		101,083		92,391
Non-current consumer loans, net (1)	51,504		82,739		75,824
Deferred tax and other assets, net	42,872		45,177		55,525
Total assets classified as held for sale	$	156,587	$	314,822	$	299,481

Current maturities of long-term debt	$	80,248	$	69,054	$	74,345
Accounts payable, accrued expenses and other current liabilities	14,098		12,194		13,380
Long-term debt, less current maturities, net and other long-term liabilities (2)	36,281		125,378		101,644
Total liabilities classified as held for sale	$	130,627	$	206,626	$	189,369

(1) These amounts include the following assets of Grupo Finmart's securitization trust that can only be used to settle its liabilities (see Note 16):



	June 30, 2016		June 30, 2015		September 30, 2015

	(in thousands)
Restricted cash	$	5,505	$	17,398	$	12,033
Consumer loans*	32,472		37,288		36,845
Consumer loan fees and interest receivable, net	6,974		5,614		6,067
Restricted cash, non-current	182		117		197
Total assets of Grupo Finmart's securitization trust	$	45,133	$	60,417	$	55,142

(2) This amount includes the following liabilities for which the creditors of Grupo Finmart's securitization trust do not have recourse to the general credit of EZCORP, Inc. (see Note 16):



	June 30, 2016		June 30, 2015		September 30, 2015

	(in thousands)
Long-term debt, less current maturities	$	25,669	$	43,900	$	40,493

Restructuring and related costs



	Three Months Ended June 30, 2016		Nine Months Ended June 30, 2016

	(in thousands)
Other (a)	$	—	$	768
Asset disposals	—		323
Lease termination costs	—		819
	$	—	$	1,910


(a)	Includes costs related to employee severance and other.

Changes in these amounts attributable to the fiscal 2015 restructuring action during the three and nine-months ended June 30, 2016 are summarized as follows:



	Three Months Ended June 30, 2016			Nine Months Ended June 30, 2016

	(in thousands)
Beginning balance	$	5,178		$	8,076
Charged to expense	—			1,594
Cash payments	(1,666		)	(5,466		)
Other (a)	1,716			1,024
Ending balance	$	5,228		$	5,228


(a)	Includes other individually immaterial adjustments as well as adjustments to our estimate of lease termination costs.

Changes in these amounts during the three and nine-months ended June 30, 2016 and 2015 are summarized as follows:



	Three Months Ended June 30,					Nine Months Ended June 30,
	2016		2015			2016			2015

	(in thousands)
Beginning balance	$	—	$	3,885		$	2,901		$	6,121
Charged to expense	—		37			—			763
Cash payments	—		(706		)	(2,901		)	(3,668		)
Ending Balance	$	—	$	3,216		$	—		$	3,216

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 205
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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Net components of basic and diluted earnings per share

Earnings per Share (Tables)

9 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Components of basic and diluted (loss) earnings per share and excluded anti-dilutive potential common shares are as follows:



	Three Months Ended June 30,						Nine Months Ended June 30,
	2016			2015			2016			2015

	(in thousands, except per share amounts)
Net income (loss) from continuing operations attributable to EZCORP (A)	$	2,904		$	(683	)	$	8,954		$	5,807
Loss from discontinued operations, net of tax (B)	(8,593		)	(9,164		)	(96,242		)	(2,699		)
Net (loss) income attributable to EZCORP (C)	$	(5,689	)	$	(9,847	)	$	(87,288	)	$	3,108

Weighted-average outstanding shares of common stock (D)	53,980			54,820			54,574			54,216
Dilutive effect of restricted stock*	212			—			116			64
Weighted-average common stock and common stock equivalents (E)	54,192			54,820			54,690			54,280

Basic (loss) earnings per share attributable to EZCORP:
Continuing operations (A / D)	$	0.05		$	(0.01	)	$	0.16		$	0.11
Discontinued operations (B / D)	(0.16		)	(0.16		)	(1.76		)	(0.06		)
Basic (loss) earnings per share (C / D)	$	(0.11	)	$	(0.17	)	$	(1.60	)	$	0.05

Diluted (loss) earnings per share attributable to EZCORP:
Continuing operations (A / E)	$	0.05		$	(0.01	)	$	0.16		$	0.11
Discontinued operations (B / E)	(0.16		)	(0.16		)	(1.76		)	(0.06		)
Diluted (loss) earnings per share (C / E)	$	(0.11	)	$	(0.17	)	$	(1.60	)	$	0.05

Potential unweighted common shares excluded from the calculation of diluted (loss) earnings per share above:
Restricted stock**	2,109			428			1,259			—
Warrants***	14,317			14,317			14,317			14,317
Total potential common shares excluded	16,426			14,745			15,576			14,317


*	As required by FASB ASC 260-10-45-19, amount excludes all potential common shares for periods when there is a loss from continuing operations.


**	Includes antidilutive share-based awards as well as performance-based and market conditioned share-based awards that are contingently issuable, but for which the condition for issuance has not been met as of the end of the reporting period.


***	See Note 7 for discussion of the terms and conditions of these potential common shares.

Strategic Investments (Tables)

9 Months Ended

Jun. 30, 2016

Equity Method Investments and Joint Ventures [Abstract]

Schedule of equity method investments

The following tables present summary financial information for Cash Converters International’s most recently reported results as of June 30, 2016 after translation to U.S. dollars:



	December 31,
	2015		2014

	(in thousands)
Current assets	$	176,105	$	200,682
Non-current assets	143,466		157,737
Total assets	$	319,571	$	358,419

Current liabilities	$	68,857	$	75,700
Non-current liabilities	48,263		54,256
Shareholders’ equity:
Equity attributable to owners of the parent	202,450		228,462
Noncontrolling interest	1		1
Total liabilities and shareholders’ equity	$	319,571	$	358,419



	Half Year Ended December 31,
	2015		2014

	(in thousands)
Gross revenues	$	143,575	$	167,206
Gross profit	93,573		104,852
Profit (loss) attributable to:
Owners of the parent	$	11,483	$	(4,717	)
Noncontrolling interest	—		(179		)
Profit (loss) for the year	$	11,483	$	(4,896	)

Long-term Debt (Tables)

9 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Long term debt instruments

The following table presents our long-term debt instruments outstanding as of June 30, 2016 and 2015 and September 30, 2015:



	June 30, 2016					June 30, 2015					September 30, 2015
	Carrying Amount		Debt (Discount) and (Issuance Costs)			Carrying Amount		Debt (Discount) Premium and (Issuance Costs)			Carrying Amount		Debt (Discount) and (Issuance Costs)

	(in thousands)
Recourse to EZCORP:
2.125% Cash convertible senior notes due 2019	$	195,221	$	(34,779	)	$	184,765	$	(45,235	)	$	187,471	$	(42,529	)
Cash convertible senior notes due 2019 embedded derivative	16,200		—			23,160		—			10,505		—
Non-recourse to EZCORP*:
8.2% Secured foreign currency debt up to $14 million due 2016 (a) (b)	5		(47		)	1,445		(321		)	938		(204		)
14.5% Secured foreign currency debt up to $16 million due 2017 (a)	14,821		—			19,157		—			17,567		—
5.8% Consumer loans facility due 2019 (b)	25,669		(1,085		)	43,900		(2,652		)	40,493		(2,196		)
8.5% Unsecured notes due 2015	—		—			12,404		(114		)	12,330		(42		)
10% Unsecured notes due 2015	—		—			—		—			1,500		—
11% Unsecured notes due 2015	—		—			4,218		—			3,868		—
17% Secured notes due 2015 consolidated from VIEs	—		—			21		—			—		—
10% Unsecured notes due 2016	1,500		—			821		—			1,885		—
12% Secured notes due 2016	—		—			3,216		22			2,928		—
13% Unsecured notes due 2016	—		—			639					1,171		—
15% Unsecured notes due 2016	3,560		—			—		—			233		—
15% Secured notes due 2016 consolidated from VIEs	2,234		—			7,098		—			5,397		—
18% Unsecured notes due 2016	5,389		—			—		—			—		—
10% Unsecured notes due 2017	162		—			—		—			—		—
11% Secured notes due 2017 consolidated from VIEs (c)	29,959		—			66,121		—			56,113		—
12% Secured notes due 2017	2,021		—			—		—			—		—
13.5% Unsecured notes due 2017	4,940		—			—		—			—		—
14.5% Secured notes due 2017 consolidated from VIEs	8,650		—			13,575		—			11,754		—
15% Unsecured notes due 2017	2,114		—			—		—			—		—
12.4% Secured notes due 2020	16,047		(175		)	18,901		(320		)	17,358		(268		)
Total	328,492		(36,086		)	399,441		(48,620		)	371,511		(45,239		)
Less current portion	80,248		—			69,054		22			74,345		—
Total long-term debt	$	248,244	$	(36,086	)	$	330,387	$	(48,642	)	$	297,166	$	(45,239	)


(a)	Maximum amounts of debt are translated from Mexican pesos to United States dollars as of the most current period end date in which outstanding debt is presented.


(b)	Interest is charged at the Mexican Interbank Equilibrium rate (“TIIE”) plus an applicable margin. The rate presented is as of June 30, 2016.


(c)	Grupo Finmart has entered into foreign exchange forward contracts to mitigate the VIE's currency risk, as described in Notes 15 and 16, and EZCORP has guaranteed the future cash outflows of the forward contracts. See "Part II, Item 1A — Risk Factors."

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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