Cash America 2013 Annual Report Download - page 180

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
155
The following table summarizes the charges recognized for the year ended December 31, 2012 related to the
Mexico Reorganization (dollars in thousands):
Type of expense Description Amount
Depreciation and amortization expenses Impairment and losses on property and equipment $ 7,478
Provision for income taxes Deferred tax asset valuation allowance 7,161
Depreciation and amortization expenses Impairment of intangible assets 5,086
Operations and administration expenses Employee termination costs 2,424
Operations and administration expenses Inventory shrinkage and loss on sale of assets 2,395
Operations and administration expenses Lease termination costs 1,628
Operations and administration expenses Impairment of other assets 1,211
Operations and administration expenses Other restructuring charges 798
Revenue Uncollectible receivables 692
Total charges related to the Mexico Reorganization $ 28,873

The following table summarizes the balance of accrued reorganization charges related to the Mexico Reorganization
and the changes in the accrued expenses as of and for the years ended December 31, 2013 and 2012 (dollars in thousands):
For the Year Ended December 31, 2013
Accrued
Balance at
Beginning of
Year Charges
Cash
Payments
Foreign
Currency
Changes
Non-Cash
Charges
Accrued
Balance at
End of Year
Lease termination costs $ 109 $ - $ (106) $ (3) $ - $ -
Total $ 109 $ - $ (106) $ (3) $ - $ -
For the Year Ended December 31, 2012
Accrued
Balance at
Beginning of
Year Charges
Cash
Payments
Foreign
Currency
Changes
Non-Cash
Charges
Accrued
Balance at
End of Year
Employee termination costs $
—
$ 2,424 $ (2,427) $ 3 $ - $ -
Lease termination costs
—
1,628 (597) 7 (929) 109
Total $
—
$ 4,052 $ (3,024) $ 10 $ (929) $ 109

The accrued reorganization charges are included in “Accounts payable and accrued liabilities” in the consolidated
balance sheets and in “Operations and administration expenses” in the consolidated statements of income.

Prior to September 26, 2012, the Company owned 80% of the outstanding stock of Creazione, which owned the
Company's Mexico-based pawn operations. On September 26, 2012, the Company acquired all outstanding shares of
Creazione that were held by minority shareholders (approximately 20% of the outstanding shares), and, as a result,
Creazione became a wholly-owned subsidiary of the Company as of that date. The Company paid approximately $5.6
million in cash and released the minority shareholders from certain contingent obligations estimated at approximately $2.8
million. The Company accounted for this transaction as an acquisition of the remaining interest of a majority-owned
subsidiary. The purchase resulted in a reduction to additional paid in capital of $7.7 million, representing the excess of the
cash amount paid and the released contingent obligations (totaling $8.4 million) less the carrying amount of the
noncontrolling interest of $0.7 million. In January 2013, the Company’s remaining Mexico-based pawn operations were
sold by Creazione to another wholly-owned subsidiary, CA Empeños Mexico, S. de R.L. de C.V., and began operating