Cash America 2012 Annual Report Download - page 139

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
114
The Company intends to adopt ASU 2012-02 beginning with its annual indefinite-lived intangible asset impairment
test during the second quarter of 2013. The Company does not expect the adoption to have a material effect on its
financial position or results of operations.
In December 2011, the FASB issued ASU 2011-11, Disclosures about Offsetting Assets and Liabilities (Topic
210) (“ASU 2011-11”). ASU 2011-11 requires a company to provide enhanced disclosures about financial instruments
and derivative instruments that are either presented net in the statement of financial position or are subject to an
enforceable master netting or similar arrangement. ASU 2011-11 is effective for annual and interim reporting periods
beginning on or after January 1, 2013. The Company does not expect the adoption of ASU 2011-11 to have a material
effect on its financial position or results of operations.
3. Acquisitions
The Company’s acquisitions for the years ended December 31, 2012, 2011 and 2010 are described below. The
Company has made all acquisitions pursuant to its business strategy of expanding storefront operations for its pawn
business in the United States and Latin America and expanding its product offerings in its e-commerce segment.
Goodwill arising from these acquisitions consists largely of the synergies and economies of scale expected from
combining the operations of the Company and these acquisitions in the retail services and e-commerce segments.

Acquisition of Nine-Store Chain of Pawn Lending Locations in Arizona
On October 8, 2012, the Company’s wholly-owned subsidiary, Cash America, Inc. of Nevada, entered into an
agreement to acquire substantially all of the assets of a nine-store chain of pawn lending locations in Arizona owned
by Ca$h Corporation, Pawn Corp #1, Inc., Pawncorp #2, Inc. and Pawncorp #4, Inc. The aggregate cash consideration
paid in 2012 for this transaction, which was funded with borrowings under the Company’s line of credit, was
approximately $15.4 million. The closing for the transaction occurred on October 25, 2012. The Company incurred an
immaterial amount of acquisition costs related to the acquisition. The activities and goodwill related to this acquisition
are included in the results of the Company’s retail services segment, which is further described in Note 21.
The allocation of the purchase price for this acquisition is as follows (dollars in thousands):
Pawn loans  $ 3,887
Merchandise held for disposition 712
Pawn loan fees and service charges receivable 509
Property and equipment 200
Goodwill  7,662
Intangible assets 2,500
Other assets  103
Customer deposits (14)
N
et assets acquire
d
 $ 15,559
Cash consideration payable as of acquisition date (128)
Total cash paid for acquisition as of acquisition date $ 15,431