Cash America 2015 Annual Report Download - page 63

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Depreciation and Amortization Expenses
The following table shows the Company’s depreciation and amortization expense for the years ended
December 31, 2014 and 2013 (dollars in thousands):
Year Ended December 31,
2014 2013 $ Change % Change
Depreciation $54,358 $50,580 $3,778 7.5%
Amortization 6,584 5,548 1,036 18.7%
Total $60,942 $56,128 $4,814 8.6%
Depreciation and amortization expenses increased $4.8 million, or 8.6%, in 2014 compared to 2013,
primarily due to an increase in depreciation expense as a result of an increase in capitalized amounts from
acquisitions completed during 2013 and the Company’s remodeling activities in its existing and newly acquired
stores. In addition, amortization expenses increased due to acquisitions completed in 2013, which increased the
Company’s intangible assets and the related amortization expenses.
Divestitures
TheCompanyincurredalossondivestitureofnon-strategicoperationsof$5.2millionin2014.The loss in
2014 included $4.9 million in aggregate losses related to the sale of the Company’s Mexico-based pawn operations,
whichwascomposedofa$2.8millionlossonsaleanda$2.1millionexpenseforthewrite-off of an uncollectible
tax receivable. Thelossin2014alsoincludeda$0.3millionlossonthesaleofallfiveoftheCompany’sColorado
pawn lending locations.
Interest Expense and Interest Income
Following the Enova Spin-off and the reclassification of the financial results of Enova to discontinued
operations, interest expense from continuing operations for 2014 and 2013 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 and 2013.
The following table shows the Company’s interest income and expense for the years ended December 31,
2014 and 2013 (dollars in thousands):
Interest expense, net of interest income, increased $2.4 million, or 14.7%, to $18.9 million in 2014 as
compared to $16.5 million in 2013. The Company’s interest income in 2014 and 2013 related primarily to the
Enova Note Receivable. The Enova Note Receivable was repaid in full and terminated in May 2014 and was
outstanding for the full year in 2013, resulting in a decrease in interest income of $12.2 million in 2014 compared to
2013. In addition, interest expense decreased in 2014 as compared to 2013, primarily due to the 2014 Debt
Reduction, which was completed primarily with the proceeds received from the repayment of the Enova Note
Receivable. See “Item 8. Financial Statements and Supplementary Information—Note 11” for additional
59
Year Ended December 31,
2014 2013 Change % Change
$22,511 $ 29,428 $ (6,917) (23.5)%Interest expense accrued on debt
Debt related fees, issuance costs and discount amortization 4,009 6,891 (2,882) (41.8)%
26,520 36,319 (9,799) (27.0)%Total interest expense
Less: interest income (7,647)(19,862) (12,215) (61.5)%
Interest expense, net $18,873 $ 16,457 $ 2,416 14.7 %