Cash America 2010 Annual Report Download - page 130

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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
101
17. Supplemental Disclosures of Cash Flow Information
The following table sets forth certain cash and non-cash activities for the years ended December 31 (in
thousands):
Year Ended December 31,
2010 2009 2008
Cash paid during the year for:
Interest $ 17,648 $ 16,822 $ 19,491
Income taxes 65,974 33,302 48,363
N
on-cash investing and financing activities:
Pawn loans forfeited and transferred to merchandise held for disposition $ 245,872 $ 243,871 $ 234,605
Pawn loans renewed 134,539 112,654 99,178
Consumer loans renewed 416,168 334,566 355,148
Liabilities assumed in acquisitions 1,602 43 -
Fair value of shares paid for acquisition 10,854 - 7,890
Capitalized interest on software development 730 797 1,185
18. Operating Segment Information
During the second quarter of 2010, the Company renamed its Internet Services Division as the E-Commerce
Division and realigned its operating segments into two reportable segments: retail services and e-commerce. The retail
services segment includes all of the operations of the Company’s Retail Services Division, which is composed of both
domestic and foreign storefront locations that offer some or all of the following services: pawn lending, consumer
loans, check cashing and other ancillary services such as money orders, wire transfers and pre-paid debit cards. (Most
of these ancillary services are provided through third-party vendors.) The e-commerce segment includes the
operations of the Company’s E-Commerce Division, which is composed of the Company’s domestic and foreign
online channel (and includes the Company’s internet lending activities, as well as online gold buying activities and
other ancillary services) and the Company’s MLOC services channel. The segment realignment was in response to a
number of changing factors within the Company’s business. First, the Company’s business strategy now emphasizes
the offering of a broad array of products such as pawn loans, gold buying, and consumer loans in most retail services
locations, such that the previously reported delineation of pawn and consumer loan-centric locations became obsolete.
Second, the Company’s management performance assessment, allocation of resources, and operating decisions
migrated to a two segment structure with one Division President overseeing retail services activities and another
Division President overseeing e-commerce activities. Third, the Company’s e-commerce products have expanded and
now include activities such as MLOC services and online gold buying.
The Company allocates corporate administrative expenses to each operating segment based on personnel
expenses at each segment. In the e-commerce segment, certain administrative expenses are allocated between the
domestic and foreign components based on the amount of loans written for each geographic location. For comparison
purposes, all prior periods in the tables below reflect the current classification of administrative and operating
expenses.