Cash America 2010 Annual Report Download - page 121

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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
92
The aggregate change in the balance of the unrecognized tax benefits for the years ended December 31, 2010,
2009 and 2008 is summarized below (in thousands):
2010 2009 2008
Balance at January 1, $ 1,021 $ 1,456 $ -
Increases (decreases) related to prior years’ tax positions - (490) 1,523
Effect of change in foreign currency rates 61 55 (67)
Balance at December 31, $1,082 $1,021 $ 1,456
The balance in unrecognized tax benefits relate to pre-acquisition tax matters of Prenda Fácil. The sellers have
agreed to reimburse the Company for taxes, penalties and interest that the Company is required to pay to taxing
authorities upon challenge of pre-acquisition tax positions of Prenda Fácil. Accordingly, the Company has recognized
a receivable from the sellers for unrecognized tax benefits, including related interest and penalties. The receivable
from the sellers is included in “Other receivables and prepaid expenses” on the consolidated balance sheets.
If recognized, $1.1 million of the unrecognized tax benefits would affect the effective tax rate. The Company
does not expect the total amount of unrecognized tax benefits to significantly increase or decrease within the next 12
months. The liability for unrecognized tax benefits, including related interest and penalties, is classified as a non-
current liability in the accompanying consolidated balance sheets. The Company has accrued $1.3 million and $1.0
million of interest and penalties as of December 31, 2010 and 2009, respectively.
As of December 31, 2010, the Company’s 2007 through 2010 tax years were open to examination by the
Internal Revenue Service and major state taxing jurisdictions. The 2005 through 2010 tax years of the Company’s
Mexican subsidiaries were open to examination by the Mexican taxing authorities.
12. Commitments and Contingencies
Leases
The Company leases certain of its facilities under operating leases with terms ranging from one to 20 or more
years and certain rights to extend for additional periods. Future minimum rentals due under non-cancelable leases are as
follows for each of the years ending December 31 (in thousands):
Year Amount
2011 $47,223
2012 37,868
2013 31,256
2014 24,271
2015 14,746
Thereafter 31,262
Total $186,626
Rent expense was $46.6 million, $43.4 million and $41.2 million for the years ended December 31, 2010,
2009 and 2008, respectively.