Cash America 2014 Annual Report Download - page 90

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Contractual Obligations and Commitments
The table below summarizes the Company’s contractual obligations at December 31, 2014, and the effect
such obligations are expected to have on its liquidity and cash flow in future periods (dollars in thousands).
2015 2016 2017 2018 2019 Thereafter Total
Long-term debt
—
—
—
196,470
—
—
196,470
Interest on long-term debt
11,297
11,297 11,297
5,649
—
—
39,540
Non-cancelable operating leases
55,881
47,605 37,407
29,533
22,172 40,811 233,409
Tot al $67,178 $58,902 $48,704 $231,652 $22,172 $40,811 $469,419
Share Repurchases
On January 28, 2015, the Board of Directors of the Company authorized a new share repurchase program
for the repurchase of up to 4.0 million shares of the Company’s common stock, or the 2015 Authorization, and
canceled the Company’s previous share repurchase authorization from January 2013, or the 2013 Authorization.
During 2014, the Company purchased 62,909 shares in open market transactions under the 2013 Authorization for a
total investment of $1.3 million, including commissions. Management anticipates that it will periodically purchase
shares under the 2015 Authorization based on its assessment of market characteristics, the liquidity position of the
Company and alternative prospects for the investment of capital to expand the business and pursue strategic
objectives.
At December 31, 2014, there were 1,470,391 shares remaining under the 2013 Authorization to repurchase
shares. Generally, the Company retains the shares upon repurchase in treasury, which are not considered outstanding
for earnings per common share computation purposes. For additional information regarding the Company’s share
repurchases during the year ended December 31, 2014, see “Item 5(c)—Issuer Purchases of Equity Securities” in
Part II.
Off-Balance Sheet Arrangements
In certain markets, the Company arranges for consumers to obtain consumer loan products from one of its
independent third-party lenders through the CSO programs. For consumer loan products originated by third-party
lenders under the CSO programs, each lender is responsible for providing the criteria by which the consumer’s
application is underwritten and, if approved, determining the amount of the consumer loan. The Company in turn is
responsible for assessing whether or not the Company will guarantee such loans. When a consumer executes an
agreement with the Company under the CSO programs, the Company agrees, for a fee payable to the Company by
the consumer, to provide certain services to the consumer, one of which is to guarantee the consumer’s obligation to
repay the loan received by the consumer from the third-party lender if the consumer fails to do so. The guarantee
represents an obligation to purchase specific loans that go into default. Short-term loans that are guaranteed
generally have terms of less than 90 days. Unsecured installment loans that are guaranteed generally have terms of
two to 12 months. Installment loans secured by the customer’s vehicle that are guaranteed typically have terms of
up to 60 months. As of December 31, 2014 and 2013, the outstanding amount of active consumer loans originated
by third-party lenders under the CSO programs was $9.8 million and $17.5 million, respectively, which were
guaranteed by the Company. The estimated fair value of the liability for estimated losses on consumer loans
guaranteed by the Company of $1.1 million and $1.0 million as of December 31, 2014 and 2013, respectively, is
included in “Accounts payable and accrued expenses” in the consolidated balance sheets.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market risks relating to the Company’s operations historically result primarily from changes in interest
rates, gold prices and foreign currency exchange rates. The Company does not engage in speculative or leveraged
transactions, nor does it hold or issue financial instruments for trading purposes. As of December 31, 2014, the
Company did not have significant foreign operations to cause significant foreign currency risk. Additionally, as of
December 31, 2014, the Company did not have any outstanding variable rate debt borrowings.