Cash America 2015 Annual Report Download - page 107

Indefinite-Lived Intangible Assets
AsofbothDecember31,2015and2014,$9.7millionand$5.3millionoflicensesandtrademarks,
respectively, obtained in conjunction with acquisitions were not subject to amortization. Costs to renew licenses
with indefinite lives are expensed as incurred and recorded in “Operations and administration expenses” in the
consolidated statements of income.
9. Investment in Enova
Upon completion of the Enova Spin-off, the Company retained approximately 20 percent, or 6,596,927
shares of Enova common stock, and the Company agreed, pursuant to a private letter ruling it obtained in
connection with the Enova Spin-off, to dispose of its retained shares of Enova common stock (other than the shares
retained for delivery under the Company’s long-term incentive plans (the “LTIPs”) as described below) no later than
two years after the date of the Enova Spin-off. At the time of the private letter ruling, Company management
believed that the Company’s shares of Enova common stock would be registered with the Securities and Exchange
Commission (“SEC”) as close to the Enova Spin-off date as possible in order to efficiently dispose of the shares in
open market dispositions over a two-year period. Due to delays in the registration process, the Company’s shares of
Enova common stock were not registered until September 15, 2015, thereby only allowing the Company slightly
over a year to dispose of its shares of Enova stock. In November 2015, the Company sent a supplemental request to
the Internal Revenue Service requesting that the Company be allowed to extend the original two-year period to
dispose of its retained shares of Enova common stock by an additional year. The Company anticipates that it will
receive a response from the Internal Revenue Service in the first half of 2016.
As of December 31, 2015, the Company owned 6,475,611 shares and had allocated 511,505 of these
retained shares for delivery under the LTIPs that existed prior to the Enova Spin-off (as described below), resulting
in the Company’s implied residual ownership in Enova equal to approximately 18 percent of the outstanding Enova
common stock as of December 31, 2015. See table below for additional information.
All of the retained shares of Enova common stock (including shares retained for delivery under the
Company’s LTIPs as described below) are classified as “available-for-sale securities” in accordance with ASC 320,
Investments-Debt and Equity Securities (“ASC 320”). The Company does not account for its investment in Enova
common stock under the equity method for the following reasons: The Company does not have the ability to
significantlyinfluencethestrategyortheoperatingorfinancialpoliciesofEnova.TheCompanydoesnotshare
employeesormanagementwithEnovaanddoesnotparticipateinanypolicy-makingprocessofEnova.The
Company does not have the right to vote on matters put before Enova stockholders because it has granted Enova a
proxy to vote its shares in the same proportion as the other stockholders of Enova on all such matters. In addition,
the Company has agreed to divest its ownership in Enova within two years following the Enova Spin-off, subject to
any potential extension permitted by the Internal Revenue Service, if any, as discussed above. While Daniel R.
Feehan, the Company’s Executive Chairman of the Board, serves as one of eight members of Enova’s Board of
Directors, he does not serve on any committees of Enova’s Board of Directors, and the Company is not able to
influence his future election to Enova’s Board of Directors because it does not have voting power with respect to the
shares of Enova that it owns. The Company also does not have any material business relationships with Enova.
The retained shares of Enova common stock include a portion of shares of Enova common stock that may
be delivered by the Company to holders of certain outstanding unvested RSUs, vested deferred RSUs, and unvested
deferred RSUs that were granted by the Company under the LTIPs to certain of its officers, directors and
employees, as well as Director Deferred Shares, if such equity awards and Director Deferred Shares were
outstanding under the LTIPs on the date of the Enova Spin-off.
Such RSU awards and Director Deferred Shares will be payable by the Company in both shares of
Company common stock and Enova common stock, subject to the terms of the LTIPs and/or the applicable award
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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