Cash America 2014 Annual Report Download - page 53

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pawn operations in August 2014, the Company re-assessed its segment structure and determined that the retail
services segment is the only reportable segment and includes all of the Company's operations. Information
previously reported separately in corporate operations, which represents corporate expenses and other
miscellaneous income, has been combined with the information previously included in the retail services segment
because all of the Company's corporate expenses and other miscellaneous income support the Company's sole
operating segment. Prior year financial amounts shown for the Company have been reclassified to reflect the
Company’s current segment structure. Additional financial information regarding the Company’s operating segment
and each of the geographic areas in which the Company conducted business during 2014, 2013 and 2012 is
provided in “Item 8. Financial Statements and Supplementary Data—Note 19.”
Locations
See “Item 1. Business—Overview—General” for details of the Company's owned and franchised locations
offering pawn lending, consumer lending and other services as of December 31, 2014, 2013 and 2012.
Recent Developments
Enova Spin-off
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 by the Company to certain of its officers, directors and employees and certain Director Deferred Shares
payable to the Company’s directors relating to the Company’s common stock awards that were outstanding under
the Company's long-term incentive plans as of the date of the Enova Spin-off. Such RSU awards and Director
Deferred Shares will be payable by the Company in both shares of Company common stock and Enova common
stock, subject to the terms of the Company’s long-term incentive plans and the applicable award agreement. The
delivery of the Enova shares of common stock will occur periodically based on the vesting terms of the award
agreements. In the event the award does not vest, the shares will be retained by the Company and sold. The total
number of Enova shares of common stock subject to award agreements was 685,087 as of December 31, 2014,
representing approximately 2.1% of the then-outstanding shares of Enova common stock. All of the retained shares
of Enova common stock (including shares retained for delivery under the Company’s long-term incentive plans) are
classified as “available-for-sale securities” in accordance with ASC 320.
Upon completion of the Enova Spin-off, the Company reclassified Enova’s financial results to
discontinued operations in the Company’s consolidated financial statements for all periods presented. For
information regarding discontinued operations, see “Item 8. Financial Statements and Supplementary Data—Note
3.”
Unless stated otherwise, the discussion of the Company's business and financial information throughout
this Annual Report refers to the Companyʼs continuing operations and results from continuing operations.