Cash America 2013 Annual Report Download - page 146

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
121
and the adoption did not have a material effect on its financial position or results of operations.
In December 2011, the FASB issued ASU No. 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 on a net basis on the balance sheet or are subject to an
enforceable master netting or similar arrangement. In January 2013, the FASB issued ASU No. 2013-01, Clarifying the
Scope of Disclosures about Offsetting Assets and Liabilities (“ASU 2013-01”), which limits the scope of ASU 2011-11
by requiring additional disclosure about financial instruments and derivative instruments that are either offset in the
statement of financial position or subject to an enforceable master netting arrangement. ASU 2013-01 requires
retrospective disclosure for all comparative periods. ASU 2011-11 and ASU 2013-01 are effective for annual and
interim reporting periods beginning January 1, 2013. The Company adopted ASU 2011-11 and ASU 2013-01 on
January 1, 2013, and the adoption of these standards did not have a material effect on its financial position or results of
operations. See Note 17 for further discussion.
Accounting Standards to be Adopted in Future Periods
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net
Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”), which
provides guidance on the presentation of unrecognized tax benefits when net operating loss carryforwards, similar tax
losses, or tax credit carryforwards exist. The amendments in this update are effective for fiscal years (and interim
periods within those years) beginning after December 15, 2013. Early adoption is permitted. The amendments should
be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is
permitted. The Company does not expect ASU 2013-11 to have a material effect on the Company's financial condition
or results of operations.
In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830): Parent’s
Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of
Assets within a Foreign Entity or of an Investment in a Foreign Entity (a consensus of the FASB Emerging Issues Task
Force) (“ASU 2013-05”), which applies to the release of the cumulative translation adjustment into net income when a
parent either sells all or a part of its investment in a foreign entity or no longer holds a controlling financial interest in a
subsidiary or group of assets that is a business (other than a sale of in substance real estate or conveyance of oil and
gas mineral rights) within a foreign entity. ASU 2013-05 is effective prospectively for fiscal years (and interim
reporting periods within those years) beginning after December 15, 2013. The Company does not expect ASU 2013-05
to have a material effect on the Company's financial condition or results of operations.
In February 2013, the FASB issued ASU No. 2013-04, Obligations Resulting from Joint and Several Liability
Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (“ASU 2013-04”). ASU
2013-04 requires an entity to measure obligations resulting from joint and several liability arrangements for which the
total amount of the obligation is fixed at the reporting date as the amount the reporting entity agreed to pay plus
additional amounts the reporting entity expects to pay on behalf of its co-obligors. The guidance further provides for
disclosure of the nature and amount of the obligation. ASU 2013-04 is effective for interim and annual reporting
periods beginning after December 15, 2013. The Company does not expect ASU 2013-04 to have a material effect on
the Company's financial condition or results of operations.
3. Acquisitions
Recent Acquisitions
For the acquisitions described below, the Company has made these acquisitions pursuant to its business
strategy of expanding storefront operations for its pawn business in the United States. Goodwill arising from these
acquisitions consists largely of the synergies and economies of scale expected from combining the operations of the