Cash America 2015 Annual Report Download - page 116

with the Company’s accounting policy, the release of the $1.0 million was recorded in the tax provision. The release
of the $1.9 million of reserves related to interest and penalties was recorded through a reduction of interest and
administrative expenses.
AsofDecember31,2015,theCompany’s2011 through 2014 tax years were open to examination by the
Internal Revenue Service and major state taxing jurisdictions, and the 2010 through 2014 tax years of the
Company’s former Mexican subsidiaries were open to examination by the Mexican taxing authorities.
13. Commitments and Contingencies
Leases
The Company leases certain of its facilities under operating leases with terms generally from one to 10
years and certain rights to extend for additional periods. Future minimum rentals due under non-cancelable leases
areasfollowsforeachoftheyearsendingDecember31(dollarsinthousands):
2016 2017 2018 2019 2020 Thereafter Total
Future minimum rentals due
under non-cancelable leases 55,807 45,553 37,084 29,282 18,965 33,250 $219,941
Rentexpensewas$60.7million,$61.8millionand$58.1millionfortheyearsendedDecember31,2015,
2014 and 2013, respectively.
Guarantees
In connection with its CSO programs, the Company guarantees consumer loan payment obligations to
unrelated third-party lenders for short-term loans, unsecured installment loans and the remaining outstanding
installment loans that are secured by a customer’s vehicle, which the Company ceased offering in the latter half of
2015. The guarantee represents an obligation to purchase specific loans that go into default. Short-term loans that
the Company guarantees generally have terms of 45 days or less. Unsecured installment loans that the Company
guarantees generally have terms of up to 12 months. Secured installment loans that the Company guarantees, which
the Company ceased offering in the latter half of 2015, have remaining terms of up to 30 months. As of
December31,2015and2014,theamountofconsumerloansguaranteedbytheCompanywas$11.1 million and
$9.8 million, respectively, representing amounts due under consumer loans originated by third-party lenders under
the CSO programs. The liability for estimated losses on consumer loans guaranteed by the Company of $2.0 million
and$1.1millionasofDecember31,2015and2014,respectively, is included in “Accounts payable and accrued
expenses” in the consolidated balance sheets.
Litigation
On August6,2004,JamesE.StrongfiledapurportedclassactionlawsuitintheStateCourtofCobb
County, Georgia against Georgia Cash America, Inc., Cash America International, Inc. (together with Georgia Cash
America, Inc., “Cash America”), Daniel R. Feehan (the Company’s chief executive officer at that time), and several
unnamed officers, directors, owners and “stakeholders” of Cash America. In August 2006, James H. Greene and
Mennie Johnson were permitted to join the lawsuit as named plaintiffs, and in June 2009, the court agreed to the
removal of James E. Strong as a named plaintiff. The lawsuit alleged many different causes of action, among the
most significant of which is that Cash America made illegal short-term loans in Georgia in violation of Georgia’s
usury law, the Georgia Industrial Loan Act and Georgia’s Racketeer Influenced and Corrupt Organizations Act. First
National Bank of Brookings, South Dakota and Community State Bank of Milbank, South Dakota for some time
made loans to Georgia residents through Cash America’s Georgia operating locations. The complaint in this lawsuit
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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