Cash America 2011 Annual Report Download - page 141

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
110
The aggregate change in the balance of the unrecognized tax benefits for the years ended December 31, 2011,
2010 and 2009 is summarized below (dollars in thousands):
2011 2010 2009
Balance at January 1, $ 1,082 $ 1,021 $ 1,456
Increases (decreases) related to prior years’ tax positions - - (490)
Effect of change in foreign currency rates (127) 61 55
Balance at December 31, $955 $1,082 $ 1,021
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 “Prepaid expenses and other assets” on the consolidated balance sheets.
If recognized, $1.0 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, $1.3
million and $1.0 million of interest and penalties as of December 31, 2011, 2010 and 2009, respectively.
As of December 31, 2011, the Company’s 2008 through 2011 tax years were open to examination by the
Internal Revenue Service and major state taxing jurisdictions. The 2006 through 2011 tax years of the Company’s
Mexican subsidiaries were open to examination by the Mexican taxing authorities.
13. 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 (dollars in thousands):
Year Amount
2012 $49,467
2013 41,108
2014 33,297
2015 23,418
2016 17,134
Thereafter 30,512
Total $194,936
Rent expense was $52.2 million, $46.6 million and $43.4 million for the years ended December 31, 2011,
2010 and 2009, respectively.
Guarantees
The Company guarantees consumer loan payment obligations to unrelated third-party lenders and is required
to purchase the loan should a consumer not make payments as required by the contract. The guarantee represents an
obligation to purchase specific loans that go into default, which generally have terms of less than 90 days. At