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Commitments and Contingencies | 12 Months Ended
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Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Leases The Company leases certain of its facilities and equipment under operating leases with terms generally ranging from three to five years. Most facility leases contain renewal options. Remaining future minimum rentals due under non-cancelable operating leases are as follows:
Fiscal |
2017 | $ | 102,541 |
2018 | 86,036 |
2019 | 68,953 |
2020 | 49,112 |
2021 | 31,591 |
Thereafter | 41,168 |
| $ | 379,401 |
Rent expense from continuing operations under such leases was $74,312, $49,959 and $46,220 for the years ended December 31, 2016, 2015 and 2014, respectively. As a result of the Merger, the Company recognized a favorable lease intangible asset in the amount of $64,701 and an unfavorable lease intangible liability in the amount of $38,102 related to assumed Cash America leases to the extent such leases contained favorable or unfavorable terms relative to market (see Note 3) (together the “Lease Intangibles”). The current portion of favorable lease intangibles is included in prepaid expenses and other current assets and the non-current portion is included in other assets in the accompanying consolidated balance sheets. The current portion of unfavorable lease intangibles is included in accounts payable and accrued liabilities and the non-current portion is included in other liabilities in the accompanying consolidated balance sheets. The Lease Intangibles are amortized to rent expense, which is a component of store operating expenses, on a straight-line basis over the lives of the respective leases. The net amortization of the Lease Intangibles reduced store operating expense by $232 for the year ended December 31, 2016. The remaining weighted-average amortization period for favorable and unfavorable lease intangibles is 5.3 and 2.6 years, respectively. Estimated future net amortization of the Lease Intangibles is as follows:
Fiscal |
2017 | $ | (1,061 | )
2018 | (159 | )
2019 | 872 |
2020 | 1,895 |
2021 | 2,392 |
Thereafter | 22,892 |
| $ | 26,831 |
Litigation The Company, in the ordinary course of business, is a defendant (actual or threatened) in certain lawsuits, arbitration claims and other general claims. In management’s opinion, any potential adverse result should not have a material adverse effect on the Company’s financial position, results of operations, or cash flows. On June 26, 2015, Wilmington Savings Fund Society, FSB, as trustee (the “Trustee”) under Cash America’s 2018 Senior Notes Indenture that governed the Cash America 2018 Senior Notes (the “2018 Senior Notes Indenture”), filed a lawsuit against Cash America in the United States District Court for the Southern District of New York (the “Senior Notes Lawsuit”). The Senior Notes Lawsuit alleged that the spin-off of Enova (the “Enova Spin-off”) completed by Cash America in November 2014 was not permitted by the 2018 Senior Notes Indenture, and the Trustee requested a remedy equal to principal and accrued and unpaid interest, plus default interest and a make-whole premium, to be paid to the holders of the 2018 Senior Notes. In August 2016, Cash America notified the Trustee that under the optional redemption provisions of the 2018 Senior Notes Indenture, it intended to redeem all of the outstanding 2018 Senior Notes at the end of August at the then make-whole premium called for by the 2018 Senior Notes Indenture. On September 1, 2016, the Merger was completed and immediately before the close of the Merger, the 2018 Senior Notes were redeemed and extinguished by Cash America. On September 19, 2016, with cross-motions for summary judgment before the court, the judge denied Cash America’s motion and granted the Trustee’s motion for summary judgment in all respects, granting all requested relief, including accrued and unpaid interest, default interest and a make-whole premium. The Company filed a notice of appeal on October 3, 2016, but rather than pursue the appeal, in December 2016, the Trustee, related parties and the Company entered into a confidential settlement agreement and release disposing of all claims and issues. An assumed liability in the amount of the settlement including legal fees is included in other liabilities in the allocation of aggregate Merger consideration. See Note 3. Guarantees The Company offers a fee-based CSO Program to assist consumers in obtaining extensions of credit from Independent Lenders. The Company’s CSO Program complies with the respective jurisdiction’s credit services organization act, credit access business law or a similar statute. Under the CSO Program, the Company assists customers in applying for a short-term extension of credit from the Independent Lenders and issues the Independent Lenders a guarantee for the repayment of the extension of credit. The extensions of credit made by the Independent Lenders to credit services customers of the Company range in amount from $50 to $1,500 (in ones) and have terms of 7 to 365 days. The Independent Lenders are considered variable interest entities of the Company. The net loans outstanding represent less than 50% of the Independent Lenders’ total assets. In addition, the Company does not have any ownership interest in the Independent Lenders, does not exercise control over them and is not the primary beneficiary and, therefore, does not consolidate the Independent Lenders’ results with its results. The Company is required to recognize, at the inception of the guarantee, a liability for the fair value of the obligation undertaken by issuing the guarantees. According to the guarantee, if the borrower defaults on the extension of credit, the Company will pay the Independent Lenders the principal, accrued interest, insufficient funds fee and late fees, if applicable, all of which the Company records as a component of its credit loss provision. The Company is entitled to seek recovery, directly from its customers, of the amounts it pays the Independent Lenders in performing under the guarantees. The Company records the estimated fair value of the liability in accrued liabilities. The loss provision associated with the CSO Program is based primarily upon historical loss experience, with consideration given to recent loss trends, delinquency rates, economic conditions and management’s expectations of future credit losses. The Company’s maximum loss exposure under all of the outstanding guarantees issued on behalf of its customers to the Independent Lenders as of December 31, 2016 was $13,172 compared to $8,192 at December 31, 2015. Gold Forward Sales Contracts In connection with the Merger, the Company assumed forward gold sales contracts entered into by Cash America. As of December 31, 2016, the Company has gold commitments of 30,700 gold ounces deliverable through December 31, 2017.

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