Cash America 2009 Annual Report Download - page 112

Download and view the complete annual report

Please find page 112 of the 2009 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 178

  • 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
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
84
Property and Equipment
Property and equipment is recorded at cost. The cost of property retired or sold and the related
accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in the
consolidated statements of income. Depreciation expense is generally provided on a straight-line basis, using
the following estimated useful lives:
Buildings and building improvements(1) 7 to 40 years
Leasehold improvements(2) 2 to 10 years
Furniture, fixtures and equipment 3 to 7 years
Computer software 3 to 5 years
(1)Structural components are depreciated over 30 to 40 years and the remaining building systems and
features are depreciated over 7 to 20 years.
a
a
(2)Leasehold improvements are depreciated over the terms of the lease agreements with a maximum of
10 years.
Software Development Costs
The Company develops computer software for internal use. Eligible internal and external costs
incurred for the development of computer applications, as well as for upgrades and enhancements that result
in additional functionality of the applications, are capitalized. Internal and external training and maintenance
costs are charged to expense as incurred. When an application is placed in service, the Company begins
amortizing the related capitalized software costs using the straight-line method based on its estimated useful
life, which currently ranges from three to five years.
Goodwill and Other Intangible Assets
In accordance with ASC 350-20-35, Goodwill – Subsequent Measurement and ASC 350-30-35,
Intangibles ─ Goodwill and Other ─ Subsequent Measurement, the Company performs an impairment review
of goodwill and intangible assets with an indefinite life at least annually. This review is performed for each
reporting unit as of June 30. The Company completed its June 2009 test and determined that there was no
evidence of impairment of goodwill or other indefinite lived intangible assets.
The Company amortizes intangible assets with an estimable life on the basis of their expected periods
of benefit, generally three to ten years. The costs of start-up activities and organization costs are charged to
expense as incurred.
Impairment of Long-Lived Assets Other Than Goodwill
An evaluation of the recoverability of property and equipment and amortized intangible assets is
performed whenever the facts and circumstances indicate that the carrying value may be impaired. An
impairment loss is then recognized if the future undiscounted cash flows associated with the asset are less
than the asset’s corresponding carrying value. The amount of the impairment loss, if any, is the excess of the
asset’s carrying value over its estimated fair value.