Cash America 2014 Annual Report Download - page 41

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resources to address problems caused by breaches. Security breaches, including any breach of the Company or of
persons with whom it has commercial relationships that result in the unauthorized release of its customers’ personal
information, could damage the Company’s reputation and expose it to a risk of loss or litigation and possible
liability. In addition, many of the third parties who provide products, services or support to the Company could also
experience any of the above cyber risks or security breaches, which could impact the Company’s customers and the
Company’s business and could result in a loss of customers, suppliers or revenue.
Any of these events could result in a loss of revenue and could have a Material Adverse Effect.
The failure of third parties who provide products, services or support to the Company to maintain their products,
services or support could disrupt Company operations or result in a loss of revenue.
The Company’s consumer loan revenue depends in part on the willingness and ability of unaffiliated third-
party lenders, through the CSO programs, to make loans to customers and other third parties to provide services to
facilitate lending, loan underwriting and payment processing. The loss of the relationship with any of these third
parties, and an inability to replace them or the failure of these third parties to maintain quality and consistency in
their programs or services or to have the ability to provide their products and services, could cause the Company to
lose customers and substantially decrease the revenue and earnings of its consumer loan business. The Company’s
revenue and earnings from its consumer loan business could also be adversely affected if any of those third-party
providers make material changes to products or services that the Company relies on. The Company offers other
services provided by various third parties to its customers. If a third-party provider fails to provide its products or
services, makes material changes to such products and services or does not maintain its quality and consistency or
fails to have the ability to provide its products and services, the Company could lose customers and related revenue
from those products or services. The Company also uses third parties to support and maintain certain of its
communication systems and computerized point-of-sale and information systems. The failure of such third parties to
fulfill their support and maintenance obligations could disrupt the Company’s operations. Any of these events could
result in a loss of revenue and could have a Material Adverse Effect.
The Company’s reported results require the judgment of management, and the Company could be subject to risks
associated with these judgments or could be adversely affected by the implementation of new, or the
interpretation of existing, accounting principles or financial reporting requirements.
The preparation of the Company’s 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. In addition, the Company prepares its financial statements in accordance with GAAP,
and GAAP and its interpretations are subject to change over time. The Company may also encounter conflicting
rules or guidance under GAAP, which could affect its accounting for certain matters or its ability to timely file
reports with the Securities and Exchange Commission. For example, on March 2, 2014, the Company filed a Form
12b-25 Notice of Late Filing with the SEC for its Annual Report because the Company's audited consolidated
financial statements for the fiscal year ended December 31, 2014 were not finalized. The delay in completing the
financial statements was attributable to the Company’s accounting treatment for the derecognition of goodwill in
connection with the Enova Spin-off. The Company may encounter conflicting guidance in the future. If new rules
or interpretations of existing rules require the Company to change its financial reporting or cause a delay in the
Company’s filings with the SEC, it could have a Material Adverse Effect, and the Company could be required to
restate historical financial reporting.