Cash America 2015 Annual Report Download - page 55

Interest Expense and Interest Income
The following table shows the Company’s interest income and expense for the years ended December 31,
2015 and 2014 (dollars in thousands):
Year Ended December 31,
2015 2014 $ Change % Change
Interest expense accrued on debt $11,509 $ 22,511 $ (11,002) (48.9)%
Debt related fees, issuance costs and discount amortization 2,948 4,009 (1,061) (26.5)%
Total interest expense 14,457 26,520 (12,063) (45.5)%
Less: interest income (100)(7,647) (7,547) (98.7)%
Interest expense, net $14,357 $ 18,873 $ (4,516) (23.9)%
Interestexpense,netofinterestincome,decreased$4.5million,or23.9%,in2015comparedto2014.
During 2015, interest expense decreased $11.0million,primarilyduetoloweraveragedebtlevelsduring2015
compared to 2014 as a result of the payoff of several of the Company’s debt instruments in 2014 and a reduced
average balance outstanding on the Company’s $280.0 million line of credit (the “Line of Credit”). Interest income
in 2014 primarily related to the Company’s outstanding note receivable from Enova (the “Enova Note Receivable”).
The Enova Note Receivable was repaid in full and was terminated in May 2014, resulting in a decrease in interest
incomeof$7.5millionin2015comparedto2014.
Following the Enova Spin-off and the reclassification of the financial results of Enova to discontinued
operations, interest expense from continuing operations for 2014 excludes interest expense related to the Enova
Note Receivable, as it is included in net income from discontinued operations. Interest income earned by the
Company related to the Enova Note Receivable is included as interest income in 2014.
Loss on Early Extinguishment of Debt
TheCompanyincurredalossonearlyextinguishmentofdebtof$0.6millionin2015comparedto
$22.6millionin2014.In2015,theCompanyrepurchased$12.0millioninprincipalamountofthe$300.0million
in aggregate principal amount of 5.75% Senior Notes due 2018 (the “2018 Senior Notes”) for cash consideration of
$12.4million.This repurchase resulted in a loss on early extinguishment of debt of $0.6 million, which consisted of
a$0.4millionpremiumpaidanda$0.2millionexpenseresultingfromthewrite-off of deferred loan costs.
In2014,theCompanyincurredalossonearlyextinguishmentofdebtof$22.6million,primarilyduetoa
$14.9 million loss on early extinguishment of debt that resulted from the prepayment of $106.2 million in principal
amount of the Company’s 6.09% Series A senior unsecured notes due 2016, 7.26% senior unsecured notes due
2017, 6.00% Series A senior unsecured notes due 2019, 6.21% Series B senior unsecured notes due 2021 and 6.58%
Series B senior unsecured notes due 2022 (collectively, the “Private Placement Notes”). In 2014, the Company also
incurred a $6.0 million loss on early extinguishment of debt due to the repurchase of $103.5 million in principal
amount of the 2018 Senior Notes, as well as a $1.5 million loss upon the repurchase of $58.6 million in principal
amount of the Company’s $115.0 million aggregate principal amount of 5.25% convertible senior notes due May
15, 2029 (the “2029 Convertible Notes”). Collectively, this activity is referred to as the “2014 Debt Reduction.”
Gain on Disposition of Equity Securities
TheCompanyincurredagainonthedispositionofequitysecuritiesof$1.7millionduring2015in
connection with the delivery of Enova common stock to holders of vested restricted stock unit awards that are
payable in shares of the Company and in Enova common stock, as well as the sale of shares of Enova common
stock that were withheld to pay taxes for issued awards. See “Item 8. Financial Statements and Supplementary
Information—Note 9” for additional information.
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