Cash America 2014 Annual Report Download - page 139

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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
124
The Company measures the fair value of long-term debt instruments using Level 2 inputs. The fair values of
the Company’s long-term debt instruments are estimated based on market values for debt issues with similar
characteristics or rates currently available for debt with similar terms. As of December 31, 2014, the Company’s
senior unsecured notes had a higher fair market value than the carrying value due to the difference in yield when
compared to recent issuances of similar senior unsecured notes.
21. Closure of Short-term Consumer Loan Retail Services Locations in Texas
Since 2011, restrictive City ordinances that have been passed in various Texas cities have had the effect of
reducing the profitability and the volume of short-term consumer loans the Company offers to customers in Texas,
and the Company had experienced a related decline in consumer loans in many of the Company’s Texas retail
services locations that offer this product as their primary source of revenue. As a result, the Company closed a total
of 36 of these retail services locations during 2013. The Texas Consumer Loan Store Closures were completed as of
December 31, 2013. The Company incurred charges of approximately $1.4 million for the year ended December 31,
2013 in connection with these closures.
22. 2014 Reorganization
In the third quarter of 2014, the Company initiated a reorganization to better align the corporate and
operating cost structure with its remaining storefront operations after the Enova Spin-off, which is referred to as the
2014 Reorganization. In connection with the 2014 Reorganization, the Company incurred $7.5 million of charges
for severance and other employee-related costs, which are included in “Operations and administration” in the
consolidated statements of income. As of December 31, 2014, the Company had made payments of approximately
$4.4 million for the 2014 Reorganization and had accrued approximately $3.1 million for future payments. Accrued
amounts for the 2014 Reorganization are included in “Accounts payable and accrued expenses” in the consolidated
balance sheets.