Cash America 2010 Annual Report Download - page 51

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gold jewelry. Any such change in the value of gold could materially adversely affect the Company’s business,
prospects, results of operations and financial condition.
Changes in the Company’s financial condition or a potential disruption in the capital markets could reduce
available capital.
In the past, the Company has accessed the debt capital markets to refinance existing debt obligations and to
obtain capital to finance growth. Efficient access to these markets is critical to the Company’s ongoing financial
success; however, the Company’s future access to the debt capital markets could become restricted due to a variety of
factors, including a deterioration of the Company’s earnings, cash flows, balance sheet quality, or overall business or
industry prospects, a disruption or deterioration in the state of the capital markets or a negative bias toward the
Company’s industry by market participants. Disruptions and volatility in the capital markets may cause banks and
other credit providers to restrict availability of new credit facilities and require higher pricing upon renewal of existing
credit facilities. The Company’s ability to obtain additional financing in the future will depend in part upon prevailing
capital market conditions, and a potential disruption in the capital markets may adversely affect the Company’s efforts
to arrange additional financing on terms that are satisfactory to the Company. If adequate funds are not available, or
are not available on acceptable terms, the Company may not be able to make future investments, take advantage of
acquisitions or other opportunities, or respond to competitive challenges and this, in turn, could adversely affect the
Company’s ability to advance its strategic plans. Additionally, if the capital and credit markets experience volatility
and the availability of funds is limited, third parties with whom the Company does business may incur increased costs
or business disruption and this could adversely affect the Company’s business relationships with such third parties.
Failure to satisfy the Company’s debt obligations could have a material adverse effect on the Company’s business.
As of December 31, 2010, the Company had $456.7 million total debt outstanding, including the Company’s
credit facilities, senior unsecured notes and 2009 Convertible Notes as more fully described under “Item 8. Financial
Statements and Supplementary Data — Note 10.” If the Company is unable to generate sufficient cash flow or
otherwise obtain funds necessary to make required payments on these debt obligations or if it is in breach of the
covenants contained in the debt agreements it would default under the terms of the applicable agreement or indenture.
Any such default could result in an acceleration of the repayment obligations to such lenders as well as the lenders
under any of its other debt agreements under applicable cross default provisions. Any such default could materially
adversely affect the Company’s business, prospects, results of operations and financial condition and could impair the
Company’s ability to continue current operations.
The Company’s reported results could be adversely affected by the implementation of new, or changes in the
interpretation of existing, accounting principles or financial reporting requirements.
The Company prepares its financial statements in accordance with generally accepted accounting principles in
the United States (“GAAP”), and GAAP and its interpretations are subject to change over time. If new rules or
interpretations of existing rules require the Company to change its financial reporting (including the proposed lease
accounting changes and the adoption of International Financial Reporting Standards in the United States), the
Company’s results of operations and financial condition could be materially adversely affected, and the Company
could be required to restate historical financial reporting.
The Company may incur property, casualty or other losses not covered by insurance.
The Company maintains a program of insurance coverage for various types of property, casualty and other
risks. The types and amounts of insurance that the Company obtains vary from time to time, depending on availability,
cost and management’s decisions with respect to risk retention. The policies are subject to deductibles and exclusions
that result in the Company’s retention of a level of risk on a self-insurance basis. Losses not covered by insurance
could be substantial and may increase the Company’s expenses, which could harm the Company’s results of operations
and financial condition.