Company: FCFS
Filing Date: 2025-02-03
Form Type: 10-K
Source: 0000840489-25-000032
Chunk: 24

Company: FirstCash Holdings, Inc.
Filing Date: 2025-02-03
Form: 10-K
Item: Item 7
Chunk 24
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 income676,422 625,125 8 %Corporate expenses and other income:  Administrative expenses173,199 176,315 (2)%Depreciation and amortization52,809 59,196 (11)%Interest expense105,226 93,243 13 %Interest income(1,935)(1,469)32 %Loss (gain) on foreign exchange2,641 (1,529)(273)%Merger and acquisition expenses2,228 7,922 (72)%Other expenses (income), net(522)(1,402)(63)%Total corporate expenses and other income333,646 332,276 — %Income before income taxes342,776 292,849 17 %Provision for income taxes83,961 73,548 14 %  Net income$258,815 $219,301 18 %

(1)Represents the elimination of intersegment transactions related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores. For further detail, see Note 17 of Notes to Consolidated Financial Statements.

57

Corporate Expenses and Taxes

Administrative expenses decreased 2% to $173.2 million during 2024 compared to $176.3 million during 2023. As a percentage of revenue, administrative expenses decreased to 5% during 2024 compared to 6% during 2023.

Depreciation and amortization decreased 11% to $52.8 million during 2024 compared to $59.2 million during 2023, primarily due to a scheduled $6.9 million decrease in amortization of acquired AFF intangible assets.

Interest expense increased 13% to $105.2 million during 2024 compared to $93.2 million for 2023, primarily due to higher average total long-term debt balances outstanding. See Note 11 of Notes to Consolidated Financial Statements and “Liquidity and Capital Resources.”

Merger and acquisition expenses decreased 72% to $2.2 million during 2024 compared to $7.9 million during 2023, reflecting a decreased level of acquisition activity in 2024 compared to 2023.   

Consolidated effective income tax rates for 2024 and 2023 were 24.5% and 25.1%, respectively. The decrease in the effective tax rate was primarily due to