Cash America 2015 Annual Report Download - page 118

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Voluntary Reimbursements to Ohio Customers
OnDecember4,2012,theCompanyannouncedtheOhioReimbursementProgram.AsofDecember31,
2012, based on Company information and third-party conclusions, the Company estimated the cost of the Ohio
Reimbursement Program and related expenses to be approximately $13.4 million before taxes and recorded this
amount in “Accounts payable and accrued expenses” in the consolidated balance sheets and in “Operations and
administrationexpense”intheconsolidatedstatementsofincomefortheyearendedDecember31,2012.During
theyearendedDecember31,2013,theCompanyreimbursedapproximately$6.4milliontocustomersandincurred
$1.7 million of related expenses in connection with this program. In addition, the Company decreased its liability
relatedtotheOhioReimbursementProgramduringtheyearsendedDecember31,2013and2014by$5.0million
and $0.3 million, respectively, after the assessment of claims made to date and related matters. As of December 31,
2014, the Company’s remaining liability associated with the Ohio Reimbursement Program was approximately $30
thousand.
14. Equity
Share Repurchases
On January 24, 2013, the Company’s Board of Directors authorized a share repurchase program for the
repurchase of up to 2.5 million shares of the Company’s common stock (the “2013 Authorization”).OnJanuary28,
2015, the Company’s Board of Directors authorized a share repurchase program for the repurchase of up to 4.0
million shares of the Company’s common stock (the “January 2015 Authorization”) and canceled the 2013
Authorization, under which the Company purchased 1,029,609 shares from January 2013 to December 2014. On
October 28, 2015, the Company’s Board of Directors authorized the most recent share repurchase program for the
repurchase of up to 3.0 million shares of the Company’s common stock (the “October 2015 Authorization”) to
become effective after the completion of the January 2015 Authorization. The October 2015 authorization became
effective in December 2015 after all shares under the January 2015 Authorization had been purchased. During the
year ended December 31, 2015, the Company purchased 4,015,866 shares under the January 2015 Authorization
and the October 2015 Authorization for a total investment of $103.9 million, including commissions. This included
the purchase of 829,666 shares under an accelerated share repurchase (“ASR”) agreement. The following table
summarizes the aggregate shares purchased under the board authorizations during each of the three years ended
December31:
YearEndedDecember31,
2015 2014 2013
Shares purchased under October 2015 Authorization, January 2015
Authorization and 2013 Authorization 4,015,866 62,909 966,700
Aggregate amount (in thousands) $ 103,874 $ 1,343 $ 46,052
Average price paid per share $ 25.87 $ 21.35 $ 47.64
In May 2015, the Company entered into an ASR agreement with a financial institution. Under the ASR
agreement, the Company paid $22.0 million in cash to the financial institution on May 14, 2015 and received an
initial delivery of 684,230 shares that were valued at $18.7 million, based on the then-current market price of the
Company’s stock. The payment to the financial institution was recorded as two separate transactions: an initial
treasury stock transaction and a forward contract indexed to the Company’s common stock. The initial treasury
stock transaction was recorded as an $18.7 million increase in treasury shares. The ASR forward contract was
recorded as a $3.3 million decrease to additional paid-in capital and reflected the value of stock to be delivered upon
final settlement. The initial delivery of shares resulted in an immediate reduction of the outstanding shares used to
calculate the weighted average common shares outstanding for basic and diluted earnings per share.
Following the final settlement of the ASR agreement on August 5, 2015, the Company received from the
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
114