Cash America 2015 Annual Report Download - page 89

Download and view the complete annual report

Please find page 89 of the 2015 Cash America annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

and liabilities associated with these operations were translated into U.S. dollars at the exchange rates in effect at
each applicable balance sheet date, and the resulting adjustments were recorded in “Accumulated other
comprehensive income (loss)” (“AOCI”) as a separate component of equity. Revenue and expenses were translated
at the monthly average exchange rates occurring during each period. The Company no longer has operations outside
of the United States and is no longer involved in foreign currency transactions and translations.
Cash and Cash Equivalents
The Company considers cash on hand in operating locations, deposits in banks and short-term investments
with original maturities of 90 days or less as cash and cash equivalents.
Restricted Cash
Restricted cash represents the amount mandated by the Consumer Financial Protection Bureau (“CFPB”)
throughitsNovember20,2013ConsentOrdertobesetasideforpaymentstocustomersinconnectionwiththe
Company’s voluntary program initiated in 2012 to reimburse Ohio customers in connection with certain legal
collections proceedings initiated by the Company in Ohio (“the Ohio Reimbursement Program”). See Note 13 for
further discussion of the reimbursements to Ohio customers in connection with the Ohio Reimbursement Program.
As of December 31, 2015 and 2014, the remaining balance of restricted cash was $27 thousand and $60 thousand,
respectively, and was included in “Prepaid expenses and other assets” in the consolidated balance sheets. Changes
in restricted cash are reflected in “Cash flows from operating activities” in the consolidated statement of cash flows.
Pawn Loans, Pawn Loan Fees and Service Charges
Revenue Recognition—Pawn Lending
Pawn loan fees and service charges revenue includes interest, service charges and extension fees and are
typically calculated as a percentage of the pawn loan amount based on the size and duration of the transaction, as
permitted by applicable laws. Other fees, such as origination fees, storage fees and lost ticket fees are generally a
fixed amount per pawn loan. Pawn loan fees and service charges revenue and the related pawn loan fees and service
charges receivable are accrued ratably over the term of the loan for the portion of those pawn loans estimated to be
collectible.
Pawn Loans and Pawn Loan Fees and Service Charges Receivable
Pawn loans are short-term loans made on the pledge of tangible personal property. The pawn loan amount is
generally assessed as a percentage of the personal property’s estimated disposition value. The typical loan term is 30
to 90 days and, in many cases, an additional grace period (typically 10 to 60 days) may be available to the borrower.
A pawn loan is considered delinquent if the customer does not repay or, where allowed by law, renew or extend the
loan on or prior to its contractual maturity date plus any applicable grace period. Pawn loan fees and service charges
do not accrue on delinquent pawn loans. When a pawn loan is considered delinquent, any accrued pawn loan fees
and service charges are reversed, and no additional pawn loan fees and service charges are accrued. Pawn loans
written during each calendar month are aggregated and tracked for performance. This empirical data allows the
Company to analyze the characteristics of its outstanding pawn loan portfolio and estimate the collectability of the
pawn loan fees and service charges.
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
85