Cash America 2014 Annual Report Download - page 109

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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Accounting Standards to be Adopted in Future Periods
In February 2015, the FASB issued ASU 2015-02, which provides guidance for reporting entities that are
required to evaluate whether they should consolidate certain legal entities. In accordance with ASU 2015-02, all
legal entities are subject to reevaluation under the revised consolidation model. ASU 2015-02 is effective for public
business entities for annual periods, and interim periods within those annual periods, beginning after December 15,
2015. Early adoption is permitted. The Company is still assessing the potential impact of ASU 2015-02 on its
consolidated financial statements.
In January 2015, the FASB issued ASU 2015-01, which eliminates from GAAP the concept of extraordinary
items. If an event or transaction meets the criteria for extraordinary classification, it is segregated from the results of
ordinary operations and is shown as a separate item in the income statement, net of tax. ASU 2015-01 is effective
for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early
adoption is permitted. The Company does not expect adoption of this guidance will have a material effect on its
consolidated financial statements.
In August 2014, the FASB issued ASU 2014-15, which requires management to evaluate, in connection
with financial statement preparation for each annual and interim reporting period, whether there are conditions or
events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the
date the financial statements are issued, and to provide related disclosures. ASU 2014-15 applies to all entities and
is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption
permitted. The Company does not expect adoption of this guidance will have a material effect on its consolidated
financial statements.
In May 2014, the FASB issued ASU 2014-09, which supersedes the revenue recognition requirements in
ASC 605. ASU 2014-09 requires entities to recognize revenue in a way that depicts the transfer of goods or services
to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for
those goods or services. ASU 2014-09 requires additional disclosure about the nature, amount, timing and
uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes
in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective
retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early
adoption is not permitted. The Company is still assessing the potential impact of ASU 2014-09 on its consolidated
financial statements.
3. Discontinued Operations
On November 13, 2014, the Company completed the separation of its online lending business that
comprised its e-commerce division, Enova, through the distribution of approximately 80 percent of the outstanding
shares of Enova common stock to the Company’s shareholders, which was structured with the intent that it would be
a tax-free distribution. The Company distributed to its shareholders 0.915 shares of Enova common stock for every
one share of the Company’s common stock held as of the close of business on November 3, 2014, which was the
record date for the Enova Spin-off. The Company received a private letter ruling from the IRS, an opinion from the
Company's tax counsel and a solvency opinion from an independent financial advisor prior to approval of the Enova
Spin-off by the Company's Board of Directors. As a result of the Enova Spin-off, Enova is now an independent
public company, and its common stock is listed on the New York Stock Exchange under the ticker symbol “ENVA.”
Upon completion of the Enova Spin-off, the Company retained approximately 20 percent, or 6.6 million
shares of Enova common stock, and the Company has agreed, pursuant to the private letter ruling, to dispose of its
retained shares of Enova common stock (other than the shares retained for delivery under the Company’s long-term
incentive plans as described below) no later than two years after the distribution. The retained shares of Enova
common stock include a portion of shares of Enova common stock that may be delivered by the Company to
holders of certain outstanding unvested RSUs, vested deferred RSUs, and unvested deferred RSUs that were granted