Cash America 2013 Annual Report Download - page 138

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
113
beneficiary of Huminal in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards
Codification (“ASC”) 810, Consolidation (“ASC 810”). Therefore, the results and balances of Huminal were
consolidated and allocated to net income attributable to noncontrolling interests. In May 2013, the Company acquired
the remaining outstanding common stock of Huminal to increase its ownership to 100% of Huminal and, as a result,
Huminal became a wholly-owned subsidiary of the Company as of that date. The Company accounted for this
transaction as a change in ownership interests that does not result in a change in control.
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Use of Estimates
The preparation of these financial statements requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the dates of
the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods.
On an on-going basis, management evaluates its estimates and judgments, including those related to revenue
recognition on pawn loan fees and service charges, allowance for losses on consumer loans, goodwill, long-lived and
intangible assets, income taxes, contingencies and litigation. Management bases its estimates on historical experience,
empirical data and on various other assumptions that are believed to be reasonable under the circumstances, the results
of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may
differ from these estimates.
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Foreign Currency Translations
The functional currencies for the Company’s subsidiaries that serve residents of the United Kingdom,
Australia, Canada and Mexico are the British pound, the Australian dollar, the Canadian dollar and the Mexican peso,
respectively. The assets and liabilities of these subsidiaries are translated into U.S. dollars at the exchange rates in
effect at each balance sheet date, and the resulting adjustments are recorded in “Accumulated other comprehensive
income (loss)” (“AOCI”) as a separate component of equity. Revenue and expenses are translated at the monthly
average exchange rates occurring during each period.
Cash and Cash Equivalents
The Company considers cash on hand in operating locations, deposits in banks and short-term investments
with original maturities of 90 days or less as cash and cash equivalents.
Restricted Cash
Restricted cash represents the amount mandated by the Consumer Financial Protection Bureau (“CFPB”)
through its November 20, 2013 Consent Order to be set aside for payments to customers in connection with the Ohio
reimbursement program. See Note 13 for further discussion of the reimbursements to Ohio customers in connection
with the Ohio reimbursement program. Changes in restricted cash are reflected in “Cash flows from operating
activities” in the consolidated statement of cash flows.
Pawn Loans, Pawn Loan Fees and Service Charges
Revenue Recognition
Pawn loan fees and service charges revenue are accrued ratably over the term of the loan for the portion of
those pawn loans deemed collectible.