Cash America 2008 Annual Report Download - page 43

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20
review indicate impairment, a write-down of the carrying value of the intangible asset would occur,
resulting in a non-cash charge, which could adversely affect our results of operations.
x The Company’s foreign operations subject the Company to foreign exchange risk. The Company is
subject to the risk of unexpected changes in foreign currency exchange rates by virtue of its loans to
residents of the United Kingdom and its operations in Mexico. Our results of operations and certain of
our intercompany balances associated with the Company’s United Kingdom and Mexico loans are
denominated in their respective currencies and are, as a result, exposed to foreign exchange rate
fluctuations. Upon consolidation, as exchange rates vary, net sales and other operating results may differ
materially from expectations, and the Company may record significant gains or losses on the
remeasurement of intercompany balances.
x The Company’s operations in Mexico are subject to political or regulatory changes or significant
changes in the economic environment. Significant regulatory or political changes in Mexico or
changes in Mexico’s economic environment could restrict the ability of the Company to sustain or
expand its operations in Mexico, which could materially adversely affect the Company’s business,
prospects, results of operations and financial condition. The Company also maintains business
relationships with significant third party service providers of labor and technology services. The failure
of these or other key service providers to fulfill their obligations as a result of regulatory, political,
economic or other factors could disrupt the Company’s operations in Mexico.
x The failure to successfully integrate newly acquired businesses into the Company’s operations
could negatively impact the Company’s performance. The Company made significant acquisitions
in 2008 involving a new product line and business model as well as a significant entry into a foreign
market. The Company has historically grown through strategic acquisitions and a key component of the
Company’s future strategy is to continue to pursue attractive acquisition opportunities. The success of
recent and future acquisitions is, and will be, dependent upon the Company effectively integrating the
management, operations and technology of acquired businesses into the Company’s existing
management, operations and technology platforms. The failure to successfully integrate acquired
businesses into the Company’s organization could materially adversely affect the Company’s business,
prospects, results of operations and financial condition.
x Adverse real estate market fluctuations could affect the Company’s profits. The Company leases
most of its locations. A significant rise in real estate prices or real property taxes could result in an
increase in store lease costs as the Company opens new locations and renews leases for existing
locations.
x Other risk factors are discussed under Quantitative and Qualitative Disclosures about Market
Risk.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.