Cash America 2009 Annual Report Download - page 34

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See “Item 8. Financial Statements and Supplementary Data—Note 4” for further discussion related to
allowance for losses.
Check Cashing Segment
The Company provides check cashing and other financial services through its pawn lending locations,
cash advance storefront locations and through its Mr. Payroll subsidiary. Other financial services include the
sale of stored-value cards, money orders and money transfers, among others.
When the Company provides a check cashing service to its customers, it charges check cashing fees
based on the type and face amount of the check being cashed. The Company receives check cashing fees
from both check cashing locations it owns and many of its pawn lending and cash advance storefront
locations. In addition, each Mr. Payroll franchisee pays royalties to Mr. Payroll based on the gross revenues
of check cashing services provided within the franchisee’s facility. Aggregate check cashing fees, royalties
and other income were 1.3% of the Company’s total revenue in 2009, 1.5% in 2008 and 1.8% in 2007.
Financial Information on Segments and Areas
Additional financial information regarding the Company’s revenues and assets by each of its three
operating segments is provided in “Item 8. Financial Statements and Supplementary Data—Note 16.”
Operations
A leadership management team comprised of the Chief Executive Officer, the President of the Retail
Services Division, the President of the Internet Services Division, the Chief Financial Officer and the General
Counsel of the Company is responsible for establishing and maintaining the strategic direction of the
Company, including assessment of activities related to corporate goals and objectives. The Company’s
Mexico operations are managed by an advisory board of six directors.
The Company’s domestic pawn lending and cash advance storefront locations have store managers
who are responsible for supervising its personnel and assuring that it is managed in accordance with Company
guidelines, policies and procedures. Each store manager is overseen by a Market Manager who reports to a
Regional Operations Director. Each region is overseen by a Region Vice President. The Region Vice
Presidents coordinate operations and strategy in the Company’s pawn lending and cash advance storefront
locations and report to the President of the Retail Services Division.
Each manager of the Company’s foreign pawn lending locations reports to a Market Manager who
then reports to a regional Operations Manager. Two senior executive officers of Prenda Fácil who
collectively own 20% of Creazione that was not acquired in the Prenda Fácil acquisition oversee the
Operations Managers. These two senior executive officers of Prenda Fácil then report to a six member
advisory board in which they participate along with the Company’s Chief Executive Officer, the President of
the Retail Services Division, the Chief Financial Officer and one of the Company’s Region Vice Presidents.
The operations and strategy of the Company’s internet channel, which offers the Company’s cash
advance product, is coordinated by the officers at CashNetUSA, including Vice Presidents and Senior Vice
Presidents, who report to the President of the Internet Services Division. The President of the Internet
Services Division is also responsible for overseeing and managing the business of the Company’s card
services business, Primary Innovations, LLC (“Primary Innovations”).
Trade Names. The Company operates its locations under the trade names “Cash America Pawn,”
“Cash America Payday Advance,” “Cashland,” “Mr. Payroll,” “SuperPawn,” “CashNetUSA,” “QuickQuid,”
“DollarsDirect” and “Prenda Fácil.” The Company has a number of marks that are registered with the United