Cash America 2011 Annual Report Download - page 128
Download and view the complete annual report
Please find page 128 of the 2011 Cash America annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118 -
119 -
120 -
121 -
122 -
123 -
124 -
125 -
126 -
127 -
128 -
129 -
130 -
131 -
132 -
133 -
134 -
135 -
136 -
137 -
138 -
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
 |
 |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
97
CashNetUSA
Pursuant to its business strategy of providing innovative solutions to customers and with a desire to develop a
fully electronic product platform, the Company, through its wholly-owned subsidiary Cash America Net Holdings,
LLC, purchased substantially all of the assets of The Check Giant LLC (“TCG”) on September 15, 2006. TCG offered
short-term consumer loans exclusively over the Internet under the name “CashNetUSA.” The Company paid an initial
purchase price of approximately $35.9 million in cash and transaction costs of approximately $2.9 million.
The Company also agreed to pay up to five supplemental earn-out payments during the two-year period after
the closing. The amount of each supplemental payment was based on a multiple of earnings attributable to
CashNetUSA’s business as defined in the purchase agreement for the twelve months preceding the date of determining
each scheduled supplemental payment less amounts previously paid. All of these supplemental payments were
accounted for as goodwill, which reflects the expected future benefits to be realized through leveraging the
CashNetUSA technology platform to expand the customer base and product offerings. The Company paid an
aggregate of $216.4 million in supplemental payments, which resulted in a final purchase price of $255.2 million. The
final supplemental payment was made in April 2009. As further described in Note 19, the activities of CashNetUSA
and its related companies, which are now known as Enova International, Inc., are included in the results of the
Company’s e-commerce segment.
The purchase price was allocated as follows (dollars in thousands):
Year ended December 31,
2006 2007 2008 2009 Total
Initial goodwill $ 9,381 $ - $ - $ - $ 9,381
Acquisition costs 2,608 - - - 2,608
Earn-out payments - 78,749 97,965 39,746 216,460
Goodwill $ 11,989 $ 78,749 $ 97,965 $ 39,746 $ 228,449
Consumer loans 18,677 - - - 18,677
Property and equipment 1,562 - - - 1,562
Intangible assets, net 6,264 - - - 6,264
Other assets 9 - - - 9
Other acquisition costs expensed 276 - - - 276
Total cash paid for acquisition, net of cash acquired $ 38,777 $ 78,749 $ 97,965 $ 39,746 $ 255,237