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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to ___________

Commission file number 001-10960
https://cdn.kscope.io/d6c69115fdf18c587a6dde6c916a6f4d-fcfs-20210331_g1.jpg
FIRSTCASH, INC.
(Exact name of registrant as specified in its charter)
Delaware75-2237318
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)

1600 West 7th Street, Fort Worth, Texas 76102
(Address of principal executive offices) (Zip code)

(817) 335-1100
(Registrant’s telephone number, including area code)

Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $.01 per shareFCFSThe Nasdaq Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes   No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes   No



Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).      Yes   No

As of April 20, 2021, there were 41,027,426 shares of common stock outstanding.





FIRSTCASH, INC.
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2021

INDEX



CAUTIONARY STATEMENT REGARDING RISKS AND UNCERTAINTIES THAT MAY AFFECT FUTURE RESULTS

Forward-Looking Information

This quarterly report contains forward-looking statements about the business, financial condition and prospects of FirstCash, Inc. and its wholly owned subsidiaries (together, the “Company”). Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of forward-looking terminology such as “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations and future plans. Forward-looking statements can also be identified by the fact these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.

While the Company believes the expectations reflected in forward-looking statements are reasonable, there can be no assurances such expectations will prove to be accurate. Security holders are cautioned such forward-looking statements involve risks and uncertainties. Certain factors may cause results to differ materially from those anticipated by the forward-looking statements made in this quarterly report. Such factors may include, without limitation, the risks, uncertainties and regulatory developments (1) related to the COVID-19 pandemic, including the unknown duration and severity of the COVID-19 pandemic, which may be impacted by variants of the COVID-19 virus and the timing, availability and efficacy of the COVID-19 vaccines in the jurisdictions in which the Company operates, the impact of governmental responses that have been, and may in the future be, imposed in response to the pandemic, including stimulus programs which could adversely impact lending demand and regulations which could adversely affect the Company’s ability to continue to fully operate, potential changes in consumer behavior and shopping patterns which could impact demand for both the Company’s pawn loan and retail products, changes in the economic conditions in the United States and Latin America, which potentially could have an impact on discretionary consumer spending or impact demand for pawn loan products, and currency fluctuations, primarily involving the Mexican peso and (2) those discussed and described in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), including the risks described in Part 1, Item 1A, “Risk Factors” thereof, and other reports filed subsequently by the Company with the SEC. Many of these risks and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. The forward-looking statements contained in this quarterly report speak only as of the date of this quarterly report, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.




PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS
FIRSTCASH, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
 March 31,December 31,
 202120202020
ASSETS   
Cash and cash equivalents$54,641 $75,464 $65,850 
Fees and service charges receivable35,334 40,121 41,110 
Pawn loans265,438 314,296 308,231 
Inventories185,336 227,876 190,352 
Income taxes receivable8,236 4,279 9,634 
Prepaid expenses and other current assets8,629 10,736 9,388 
Total current assets557,614 672,772 624,565 
Property and equipment, net384,617 329,066 373,667 
Operating lease right of use asset287,418 280,840 298,957 
Goodwill974,051 927,290 977,381 
Intangible assets, net83,229 84,999 83,651 
Other assets9,365 9,188 9,818 
Deferred tax assets3,869 8,718 4,158 
Total assets$2,300,163 $2,312,873 $2,372,197 
LIABILITIES AND STOCKHOLDERS’ EQUITY   
Accounts payable and accrued liabilities$79,575 $74,805 $81,917 
Customer deposits38,727 39,728 34,719 
Income taxes payable7,139 9,832 1,148 
Lease liability, current86,529 82,355 88,622 
Total current liabilities211,970 206,720 206,406 
Revolving unsecured credit facilities44,000 355,519 123,000 
Senior unsecured notes493,108 296,744 492,916 
Deferred tax liabilities73,020 64,728 71,173 
Lease liability, non-current186,972 181,787 194,887 
Total liabilities1,009,070 1,105,498 1,088,382 
Stockholders’ equity:   
Common stock493 493 493 
Additional paid-in capital1,218,323 1,224,113 1,221,788 
Retained earnings811,921 749,126 789,303 
Accumulated other comprehensive loss(130,767)(180,472)(118,432)
Common stock held in treasury, at cost(608,877)(585,885)(609,337)
Total stockholders’ equity1,291,093 1,207,375 1,283,815 
Total liabilities and stockholders’ equity$2,300,163 $2,312,873 $2,372,197 
The accompanying notes are an integral part of these consolidated financial statements.
1


FIRSTCASH, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands, except per share amounts)
 Three Months Ended
 March 31,
 20212020
Revenue:  
Retail merchandise sales$272,042 $296,629 
Pawn loan fees115,522 142,115 
Wholesale scrap jewelry sales20,375 26,371 
Consumer loan and credit services fees 1,375 
Total revenue407,939 466,490 
Cost of revenue:  
Cost of retail merchandise sold157,153 184,695 
Cost of wholesale scrap jewelry sold17,197 22,847 
Consumer loan and credit services loss provision (361)
Total cost of revenue174,350 207,181 
Net revenue233,589 259,309 
Expenses and other income:  
Store operating expenses137,324 153,500 
Administrative expenses30,999 32,902 
Depreciation and amortization10,612 10,674 
Interest expense7,230 8,418 
Interest income(158)(185)
Merger and acquisition expenses166 68 
Loss on foreign exchange267 2,685 
Write-off of certain Cash America merger related lease intangibles878 3,630 
Impairment of certain other assets 1,900 
Total expenses and other income187,318 213,592 
Income before income taxes46,271 45,717 
Provision for income taxes12,556 12,799 
Net income$33,715 $32,918 
Earnings per share:  
Basic$0.82 $0.79 
Diluted$0.82 $0.78 
The accompanying notes are an integral part of these consolidated financial statements.
2


FIRSTCASH, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(unaudited, in thousands)
 Three Months Ended
 March 31,
 20212020
Net income$33,715 $32,918 
Other comprehensive income (loss):  
Currency translation adjustment(12,335)(83,503)
Comprehensive income (loss)$21,380 $(50,585)
 The accompanying notes are an integral part of these consolidated financial statements.

3


FIRSTCASH, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(unaudited, in thousands, except per share amounts)
Three Months Ended March 31, 2021
Common
Stock
Additional
Paid-In
Capital
Retained
Earnings
Accum-
ulated
Other
Compre-
hensive
Loss
Common Stock
Held in Treasury
Total
Stock-
holders’
Equity
 SharesAmount   SharesAmount 
As of 12/31/202049,276 $493 $1,221,788 $789,303 $(118,432)8,238 $(609,337)$1,283,815 
Shares issued under share-based compensation plan, net of 28 shares net-settled
— — (7,090)— — (73)5,427 (1,663)
Share-based compensation expense
— — 3,625 — — — — 3,625 
Net income— — — 33,715 — — — 33,715 
Cash dividends ($0.27 per share)
— — — (11,097)— — — (11,097)
Currency translation adjustment
— — — — (12,335)— — (12,335)
Purchases of treasury stock
— — — — — 84 (4,967)(4,967)
As of 3/31/2021 49,276 $493 $1,218,323 $811,921 $(130,767)8,249 $(608,877)$1,291,093 
The accompanying notes are an integral part of these consolidated financial statements.
4


FIRSTCASH, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
CONTINUED
(unaudited, in thousands, except per share amounts)
Three Months Ended March 31, 2020
Common
Stock
Additional
Paid-In
Capital
Retained
Earnings
Accum-
ulated
Other
Compre-
hensive
Loss
Common Stock
Held in Treasury
Total
Stock-
holders’
Equity
 SharesAmount   SharesAmount 
As of 12/31/201949,276 $493 $1,231,528 $727,476 $(96,969)6,947 $(512,493)$1,350,035 
Shares issued under share-based compensation plan, net of 46 shares net-settled
— — (10,266)— — (93)6,939 (3,327)
Share-based compensation expense— — 2,851 — — — — 2,851 
Net income— — — 32,918 — — — 32,918 
Cash dividends ($0.27 per share)
— — — (11,268)— — — (11,268)
Currency translation adjustment— — — — (83,503)— — (83,503)
Purchases of treasury stock— — — — — 981 (80,331)(80,331)
As of 3/31/2020 49,276 $493 $1,224,113 $749,126 $(180,472)7,835 $(585,885)$1,207,375 
The accompanying notes are an integral part of these consolidated financial statements.
5


FIRSTCASH, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
 Three Months Ended
March 31,
 20212020
Cash flow from operating activities:  
Net income$33,715 $32,918 
Adjustments to reconcile net income to net cash flow provided by operating activities:  
Non-cash portion of consumer loan credit loss provision (729)
Share-based compensation expense3,625 2,851 
Depreciation and amortization expense10,612 10,674 
Amortization of debt issuance costs395 387 
Write-off of certain Cash America merger related lease intangibles878 3,630 
Impairment of certain other assets 1,900 
Deferred income taxes, net2,010 4,239 
Changes in operating assets and liabilities, net of business combinations:  
Fees and service charges receivable5,394 3,673 
Inventories purchased directly from customers, wholesalers or manufacturers1,442 6,951 
Prepaid expenses and other assets868 355 
Accounts payable, accrued liabilities and other liabilities3,122 9,755 
Income taxes7,113 781 
Net cash flow provided by operating activities69,174 77,385 
Cash flow from investing activities:  
Loan receivables, net (1)
42,394 52,279 
Purchases of furniture, fixtures, equipment and improvements(9,491)(10,581)
Purchases of store real property(14,441)(9,617)
Acquisitions of pawn stores, net of cash acquired(1,204)(5,477)
Net cash flow provided by investing activities17,258 26,604 
Cash flow from financing activities:  
Borrowings from unsecured credit facilities45,000 106,925 
Repayments of unsecured credit facilities(124,000)(88,000)
Debt issuance costs paid (130)
Purchases of treasury stock(4,967)(80,331)
Payment of withholding taxes on net share settlements of restricted stock unit awards(1,663) 
Dividends paid(11,097)(11,268)
Net cash flow used in financing activities(96,727)(72,804)
Effect of exchange rates on cash(914)(2,248)
Change in cash and cash equivalents(11,209)28,937 
Cash and cash equivalents at beginning of the period65,850 46,527 
Cash and cash equivalents at end of the period$54,641 $75,464 

(1)Includes the funding of new loans net of cash repayments and recovery of principal through the sale of inventories acquired from forfeiture of pawn collateral.

The accompanying notes are an integral part of these consolidated financial statements.    




6


FIRSTCASH, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 1 - General

Basis of Presentation

The accompanying consolidated balance sheet as of December 31, 2020, which is derived from audited financial statements, and the unaudited consolidated financial statements, including the notes thereto, include the accounts of FirstCash, Inc. and its wholly-owned subsidiaries (together, the “Company”). The Company regularly makes acquisitions and the results of operations for the acquired stores have been consolidated since the acquisition dates. All significant intercompany accounts and transactions have been eliminated.

These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include certain information and disclosures required for comprehensive financial statements. These interim period financial statements should be read in conjunction with the Company’s consolidated financial statements, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (the “SEC”) on February 1, 2021. The consolidated financial statements as of March 31, 2021 and 2020, and for the three month periods ended March 31, 2021 and 2020, are unaudited, but in management’s opinion include all adjustments (consisting of only normal recurring adjustments) considered necessary to present fairly the financial position, results of operations and cash flow for such interim periods. Operating results for the period ended March 31, 2021 are not necessarily indicative of the results that may be expected for the full year.

The Company has operations in Latin America, where in Mexico, Guatemala and Colombia, the functional currency is the Mexican peso, Guatemalan quetzal and Colombian peso. Accordingly, the assets and liabilities of these subsidiaries are translated into U.S. dollars at the exchange rate in effect at each balance sheet date, and the resulting adjustments are accumulated in other comprehensive income (loss) as a separate component of stockholders’ equity. Revenues and expenses are translated at the average exchange rates occurring during the respective period. The Company also has operations in El Salvador where the reporting and functional currency is the U.S. dollar.

Continuing Impact of COVID-19

The onset of COVID-19 in March 2020 in the U.S. and shortly thereafter in Latin America significantly impacted the Company’s operations and earnings results. Most countries, states and other local government officials reacted by instituting quarantines, shelter-in-place and other orders mandating non-essential business closures, travel restrictions and other measures in an effort to reduce the spread of COVID-19. The measures significantly reduced normal levels of consumer spending, and combined with broad-based stimulus programs and enhanced unemployment benefits in the U.S., provided significant and unprecedented liquidity to many of the Company’s customers, which greatly suppressed normal demand for pawn loans which, in turn, reduced volumes of inventory acquired from forfeited pawn loans.

The extent to which COVID-19 continues to impact the Company’s operations, results of operations, liquidity and financial condition will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the unknown duration and severity of the COVID-19 pandemic, which may be impacted by variants of the COVID-19 virus and the timing, availability and efficacy of the COVID-19 vaccines in the jurisdictions in which the Company operates, and the actions taken to contain the impact of COVID-19, as well as further actions taken to limit the resulting economic impact. In particular, government stimulus and other transfer programs have and may continue to have a material adverse impact on demand for pawn loans in future periods.

Use of Estimates

The preparation of interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and related revenue and expenses, and the disclosure of gain and loss contingencies at the date of the financial statements. Such estimates and assumptions are subject to a number of risks and uncertainties, which may cause actual results to differ materially from the Company’s estimates. The extent to which COVID-19 impacts the Company’s operations, results of operations, liquidity and financial condition, including estimates and assumptions used by the Company in the calculation and evaluation of the accrual for earned but uncollected pawn loan fees, impairment of goodwill and other intangible assets and current and deferred tax assets and liabilities, will depend on future
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developments, which are highly uncertain and cannot be predicted with confidence, including the unknown duration and severity of the COVID-19 pandemic and the actions taken to contain its impact, as well as actions taken to limit the resulting economic impact, among others. The Company’s future assessment of the magnitude and duration of the COVID-19 pandemic, as well as other factors, could result in material impacts to the Company’s financial statements in future reporting periods.

Reclassification

Certain amounts in the consolidated financial statements as of and for the three months ended March 31, 2020 have been reclassified in order to conform to the 2021 presentation.

Recent Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board issued ASU No 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). ASU 2019-12 removes certain exceptions to the general principles in Topic 740 in Generally Accepted Accounting Principles. ASU 2019-12 is effective for public entities for fiscal years beginning after December 15, 2020, with early adoption permitted. The adoption of ASU 2019-12 did not have a material effect on the Company’s current financial position, results of operations or financial statement disclosures.

In March 2020, the Financial Accounting Standards Board issued ASU No 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). ASU 2020-04 provides temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. ASU 2020-04 is effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company does not expect ASU 2020-04 to have a material effect on the Company’s current financial position, results of operations or financial statement disclosures.

Note 2 - Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts):
Three Months Ended
March 31,
 20212020
Numerator:  
Net income$33,715 $32,918 
Denominator:  
Weighted-average common shares for calculating basic earnings per share41,034 41,912 
Effect of dilutive securities:  
Stock options and restricted stock unit awards22 95 
Weighted-average common shares for calculating diluted earnings per share41,056 42,007 
Earnings per share:  
Basic$0.82 $0.79 
Diluted$0.82 $0.78 


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Note 3 - Operating Leases

The Company leases the majority of its pawnshop locations under operating leases and determines if an arrangement is or contains a lease at inception. Many leases include both lease and non-lease components, which the Company accounts for separately. Lease components include rent, taxes and insurance costs while non-lease components include common area or other maintenance costs. Operating leases are included in operating lease right of use assets, lease liability, current and lease liability, non-current in the consolidated balance sheets. The Company does not have any finance leases.

Leased facilities are generally leased for a term of three to five years with one or more options to renew for an additional three to five years, typically at the Company’s sole discretion. In addition, the majority of these leases can be terminated early upon an adverse change in law which negatively affects the store’s profitability. The Company regularly evaluates renewal and termination options to determine if the Company is reasonably certain to exercise the option, and excludes these options from the lease term included in the recognition of the operating lease right of use asset and lease liability until such certainty exists. The weighted-average remaining lease term for operating leases as of March 31, 2021 and 2020 was 4.1 years and 3.9 years, respectively.

The operating lease right of use asset and lease liability is recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Company’s leases do not provide an implicit rate and therefore, it uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The Company utilizes a portfolio approach for determining the incremental borrowing rate to apply to groups of leases with similar characteristics. The weighted-average discount rate used to measure the lease liability as of March 31, 2021 and 2020 was 6.7% and 7.8%, respectively.

The Company has certain operating leases in Mexico which are denominated in U.S. dollars. The liability related to these leases is considered a monetary liability, and requires remeasurement each reporting period into the functional currency (Mexican pesos) using reporting date exchange rates. The remeasurement results in the recognition of foreign currency exchange gains or losses each reporting period, which can produce a certain level of earnings volatility. The Company recognized a foreign currency loss of $0.6 million and $4.4 million during the three months ended March 31, 2021 and 2020, respectively, related to the remeasurement of these U.S. dollar denominated operating leases, which is included in loss on foreign exchange in the accompanying consolidated statements of income.

Lease expense is recognized on a straight-line basis over the lease term, with variable lease expense recognized in the period such payments are incurred. The following table details the components of lease expense included in store operating expenses in the consolidated statements of income during the three months ended March 31, 2021 and 2020 (in thousands):
Three Months Ended
March 31,
20212020
Operating lease expense$31,065 $31,210 
Variable lease expense (1)
3,834 3,545 
Total operating lease expense$34,899 $34,755 

(1)Variable lease costs consist primarily of taxes, insurance and common area or other maintenance costs paid based on actual costs incurred by the lessor and can therefore vary over the lease term.

The following table details the maturity of lease liabilities for all operating leases as of March 31, 2021 (in thousands):
Nine months ending December 31, 2021$78,410 
202284,948 
202364,926 
202442,188 
202518,221 
Thereafter23,966 
Total$312,659 
Less amount of lease payments representing interest(39,158)
Total present value of lease payments$273,501 
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The following table details supplemental cash flow information related to operating leases for the three months ended March 31, 2021 and 2020 (in thousands):
Three Months Ended
March 31,
20212020
Cash paid for amounts included in the measurement of operating lease liabilities$28,186 $28,835 
Leased assets obtained in exchange for new operating lease liabilities$16,778 $24,983 

Note 4 - Long-Term Debt

The following table details the Company’s long-term debt at the respective principal amounts, net of unamortized debt issuance costs on the senior unsecured notes (in thousands):
As of March 31,As of December 31,
202120202020
Revolving unsecured uncommitted credit facility, maturing 2023 (1)
$ $25,519 $ 
Revolving unsecured credit facility, maturing 2024 (1)
44,000 330,000 123,000 
5.375% senior unsecured notes due 2024 (2)
 296,744  
4.625% senior unsecured notes due 2028 (3)
493,108  492,916 
Total long-term debt$537,108 $652,263 $615,916 

(1)Debt issuance costs related to the Company’s revolving unsecured credit facilities are included in other assets in the accompanying consolidated balance sheets.

(2)As of March 31, 2020, deferred debt issuance costs of $3.3 million are included as a direct deduction from the carrying amount of the senior unsecured notes due 2024 in the accompanying consolidated balance sheets.

(3)As of March 31, 2021 and December 31, 2020, deferred debt issuance costs of $6.9 million and $7.1 million, respectively, are included as a direct deduction from the carrying amount of the senior unsecured notes due 2028 in the accompanying consolidated balance sheets.

Revolving Unsecured Credit Facility

As of March 31, 2021, the Company maintained an unsecured line of credit with a group of U.S. based commercial lenders (the “Credit Facility”) in the amount of $500.0 million. The Credit Facility matures on December 19, 2024. As of March 31, 2021, the Company had $44.0 million in outstanding borrowings and $3.4 million in outstanding letters of credit under the Credit Facility, leaving $452.6 million available for future borrowings, subject to certain financial covenants. The Credit Facility is unsecured and bears interest, at the Company’s option, of either (1) the prevailing LIBOR (with interest periods of 1 week or 1, 2, 3 or 6 months at the Company’s option) plus a fixed spread of 2.5% or (2) the prevailing prime or base rate plus a fixed spread of 1.5%. The agreement has a LIBOR floor of 0%. Additionally, the Company is required to pay an annual commitment fee of 0.325% on the average daily unused portion of the Credit Facility commitment. The weighted-average interest rate on amounts outstanding under the Credit Facility at March 31, 2021 was 2.82% based on 1 week LIBOR. Under the terms of the Credit Facility, the Company is required to maintain certain financial ratios and comply with certain financial covenants. The Credit Facility also contains customary restrictions on the Company’s ability to incur additional debt, grant liens, make investments, consummate acquisitions and similar negative covenants with customary carve-outs and baskets. The Company was in compliance with the covenants of the Credit Facility as of March 31, 2021. During the three months ended March 31, 2021, the Company made net payments of $79.0 million pursuant to the Credit Facility.

Revolving Unsecured Uncommitted Credit Facility

As of March 31, 2021, the Company’s primary subsidiary in Mexico, First Cash S.A. de C.V., maintained an unsecured and uncommitted line of credit guaranteed by FirstCash, Inc. with a bank in Mexico (the “Mexico Credit Facility”) in the amount of $600.0 million Mexican pesos. The Mexico Credit Facility bears interest at the Mexican Central Bank’s interbank equilibrium rate (“TIIE”) plus a fixed spread of 2.5% and matures on March 9, 2023. Under the terms of the Mexico Credit Facility, the Company is required to maintain certain financial ratios and comply with certain financial covenants. The Company was in compliance with the covenants of the Mexico Credit Facility as of March 31, 2021. At March 31, 2021, the Company had no amount outstanding under the Mexico Credit Facility and $600.0 million Mexican pesos available for borrowings.
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Senior Unsecured Notes Due 2028

On August 26, 2020, the Company issued $500.0 million of 4.625% senior unsecured notes due on September 1, 2028 (the “Notes”), all of which are currently outstanding. Interest on the Notes is payable semi-annually in arrears on March 1 and September 1. The Notes are fully and unconditionally guaranteed on a senior unsecured basis jointly and severally by all of the Company's existing and future domestic subsidiaries that guarantee its Credit Facility. The Notes will permit the Company to make restricted payments, such as purchasing shares of its stock and paying cash dividends, in an unlimited amount if, after giving pro forma effect to the incurrence of any indebtedness to make such payment, the Company's consolidated total debt ratio (“Net Debt Ratio”) is less than 2.75 to 1. The Net Debt Ratio is defined generally in the indenture governing the Notes as the ratio of (1) the total consolidated debt of the Company minus cash and cash equivalents of the Company to (2) the Company’s consolidated trailing twelve months EBITDA, as adjusted to exclude certain non-recurring expenses and giving pro forma effect to operations acquired during the measurement period.

The Company utilized the net proceeds from the offering of the Notes to redeem all of the $300.0 million aggregate principal amount of the Company’s 5.375% senior notes due 2024 and to repay a portion of the Company’s Credit Facility.

Note 5 - Fair Value of Financial Instruments

The fair value of financial instruments is determined by reference to various market data and other valuation techniques, as appropriate. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The three fair value levels are (from highest to lowest):

Level 1: Quoted market prices in active markets for identical assets or liabilities.
Level 2: 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

As of March 31, 2021, 2020 and December 31, 2020, the Company did not have any financial assets or liabilities measured at fair value on a recurring basis.

Fair Value Measurements on a Non-Recurring Basis

The Company measures non-financial assets and liabilities, such as property and equipment and intangible assets, at fair value on a non-recurring basis, or when events or circumstances indicate that the carrying amount of the assets may be impaired. During the three months ended March 31, 2020, the Company recorded a $1.9 million impairment related to a non-financial, non-operating asset that was included in other assets in the consolidated balance sheets.


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Financial Assets and Liabilities Not Measured at Fair Value

The Company’s financial assets and liabilities as of March 31, 2021, 2020 and December 31, 2020 that are not measured at fair value in the consolidated balance sheets are as follows (in thousands):
Carrying ValueEstimated Fair Value
March 31,March 31,Fair Value Measurements Using
20212021Level 1Level 2Level 3
Financial assets:
Cash and cash equivalents$54,641 $54,641 $54,641 $ $ 
Fees and service charges receivable35,334 35,334   35,334 
Pawn loans265,438 265,438   265,438 
$355,413 $355,413 $54,641 $ $300,772 
Financial liabilities:
Revolving unsecured credit facilities$44,000 $44,000 $ $44,000 $ 
Senior unsecured notes (outstanding principal)500,000 506,000  506,000  
$544,000 $550,000 $ $550,000 $ 

Carrying ValueEstimated Fair Value
March 31,March 31,Fair Value Measurements Using
20202020Level 1Level 2Level 3
Financial assets:
Cash and cash equivalents$75,464 $75,464 $75,464 $ $ 
Fees and service charges receivable40,121 40,121   40,121 
Pawn loans314,296 314,296   314,296 
$429,881 $429,881 $75,464 $ $354,417 
Financial liabilities:
Revolving unsecured credit facilities$355,519 $355,519 $ $355,519 $ 
Senior unsecured notes (outstanding principal)300,000 276,000  276,000  
$655,519 $631,519 $ $631,519 $ 

Carrying ValueEstimated Fair Value
December 31,December 31,Fair Value Measurements Using
20202020Level 1Level 2Level 3
Financial assets:
Cash and cash equivalents$65,850 $65,850 $65,850 $ $ 
Fees and service charges receivable41,110 41,110   41,110 
Pawn loans308,231 308,231   308,231 
$415,191 $415,191 $65,850 $ $349,341 
Financial liabilities:
Revolving unsecured credit facilities$123,000 $123,000 $ $123,000 $ 
Senior unsecured notes (outstanding principal)500,000 516,000  516,000  
$623,000 $639,000 $ $639,000 $ 

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As cash and cash equivalents have maturities of less than three months, the carrying value of cash and cash equivalents approximates fair value. Due to their short-term maturities, the carrying value of pawn loans and fees and service charges receivable approximate fair value.

The carrying value of the unsecured credit facilities approximate fair value as of March 31, 2021, 2020 and December 31, 2020. The fair value of the unsecured credit facilities is estimated based on market values for debt issuances with similar characteristics or rates currently available for debt with similar terms. In addition, the unsecured credit facilities have a variable interest rate based on a fixed spread over LIBOR or TIIE and reprice with any changes in LIBOR or TIIE. The fair value of the senior unsecured notes is estimated based on quoted prices in markets that are not active.

Note 6 - Segment Information

The Company organizes its operations into two reportable segments as follows:

U.S. operations
Latin America operations - includes operations in Mexico, Guatemala, Colombia and El Salvador

Corporate expenses and income, which include administrative expenses, corporate depreciation and amortization, interest expense, interest income, merger and acquisition expenses, loss on foreign exchange, write-offs of certain lease intangibles and impairments of certain other assets, are incurred or earned in both the U.S. and Latin America, but presented on a consolidated basis and are not allocated between the U.S. operations segment and Latin America operations segment.

The following tables present reportable segment information for the three month period ended March 31, 2021 and 2020 (in thousands):
Three Months Ended March 31, 2021
 U.S.
Operations
Latin America
Operations
CorporateConsolidated
Revenue:   
Retail merchandise sales$189,957 $82,085 $ $272,042 
Pawn loan fees76,397 39,125  115,522 
Wholesale scrap jewelry sales9,203 11,172  20,375 
Total revenue275,557 132,382  407,939 
Cost of revenue:    
Cost of retail merchandise sold106,530 50,623  157,153 
Cost of wholesale scrap jewelry sold7,513 9,684  17,197 
Total cost of revenue114,043 60,307  174,350 
Net revenue161,514 72,075  233,589 
Expenses and other income:    
Store operating expenses95,247 42,077  137,324 
Administrative expenses  30,999 30,999 
Depreciation and amortization5,382 4,263 967 10,612 
Interest expense  7,230 7,230 
Interest income  (158)(158)
Merger and acquisition expenses  166 166 
Loss on foreign exchange  267 267 
Write-off of certain Cash America merger related lease intangibles  878 878 
Total expenses and other income100,629 46,340 40,349 187,318 
Income (loss) before income taxes$60,885 $25,735 $(40,349)$46,271 
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Three Months Ended March 31, 2020
 U.S.
Operations
Latin America
Operations
CorporateConsolidated
Revenue:   
Retail merchandise sales$195,966 $100,663 $ $296,629 
Pawn loan fees97,857 44,258  142,115 
Wholesale scrap jewelry sales15,478 10,893  26,371 
Consumer loan and credit services fees (1)
1,375   1,375 
Total revenue310,676 155,814  466,490 
Cost of revenue:    
Cost of retail merchandise sold119,529 65,166  184,695 
Cost of wholesale scrap jewelry sold14,006 8,841  22,847 
Consumer loan and credit services loss provision (1)
(361)  (361)
Total cost of revenue