Cash America 2011 Annual Report Download - page 124

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
93
adopted ASU 2010-29 for the year ended December 31, 2011, and the adoption did not have a material effect on its
financial position or results of operations.
Recently Issued Accounting Pronouncements
In September 2011, the FASB issued ASU No. 2011-08, Testing Goodwill for Impairment (“ASU 2011-08”).
This update is intended to simplify goodwill impairment testing by adding an optional qualitative review step to assess
whether the required quantitative impairment analysis that exists under generally accepted accounting principles
(“GAAP”), is necessary. Under the amended rule, a company will not be required to calculate the fair value of a
reporting unit that contains recorded goodwill unless it concludes, based on the qualitative assessment, that it is more
likely than not (a likelihood of more than 50 percent) that the fair value of that reporting unit is less than its book
value. If such a decline in fair value is deemed more likely than not to have occurred, then the quantitative goodwill
impairment test that exists under current GAAP must be completed. If not, goodwill is deemed not impaired and no
further testing is required until the next annual test date, unless conditions or events before that date raise concerns of
potential impairment. The amended goodwill impairment guidance does not affect the manner in which a company
estimates fair value. ASU 2011-08 is effective for the Company for interim and annual goodwill impairment tests
performed for fiscal years beginning after December 15, 2011. The Company does not anticipate that the adoption of
ASU 2011-08 will have a material effect on its financial position or results of operations.
In June 2011, the FASB issued ASU No. 2011-05, Presentation of Comprehensive Income (“ASU 2011-05”),
which will enhance comparability between entities that report under GAAP and those that report under International
Financial Reporting Standards (“IFRS”). ASU 2011-05 requires companies to present the components of net income
and other comprehensive income either as one continuous statement or as two consecutive statements. It eliminates
the option to present components of other comprehensive income as part of the statement of equity. ASU 2011-05 is
effective for the Company’s interim and annual periods beginning after December 15, 2011 and must be applied
retrospectively. Early adoption is permitted. In December 2011, the FASB issued ASU No. 2011í12, Comprehensive
Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items
Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011í05 ("ASU 2011í12").
ASU 2011í12 effectively defers only those changes in ASU 2011-05 that relate to the presentation of reclassification
adjustments out of accumulated other comprehensive income. The Company does not anticipate that the adoption of
ASU 2011-05 or ASU 2011-12 will have a material effect on its financial position or results of operations.
In May 2011, the FASB issued ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement
and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (“ASU 2011-04”),
which amends ASC 820, Fair Value Measurement (“ASC 820”). ASU 2011-04 provides a consistent definition and
measurement of fair value, as well as similar disclosure requirements between GAAP and IFRS. ASU 2011í04
changes certain fair value measurement principles, clarifies the application of existing fair value measurement and
expands the ASC 820 disclosure requirements, particularly for Level 3 fair value measurements. ASU 2011-04 is
effective for the Company prospectively for interim and annual periods beginning after December 15, 2011. The
Company does not anticipate that the adoption of ASU 2011-04 will have a material effect on its financial position or
results of operations.
3. Acquisitions
Pawn Partners, Inc.
Pursuant to its business strategy of expanding storefront operations in the United States, the Company’s
wholly-owned subsidiary, Cash America, Inc. of Nevada, entered into an agreement to acquire substantially all of the
assets of Pawn Partners, Inc., Pawn Partners -Tucson, Inc., Pawn Partners - Tucson II, Inc., Pawn Partners - Tucson 3,
Inc., Pawn Partners - Tucson 4, Inc. and Pawn Partners - Yuma, Inc. (collectively, "Pawn Partners") on November 22,
2011 (the "Pawn Partners acquisition"), the final closing for which will occur following receipt of all applicable