Sally Beauty Supply 2011 Annual Report Download - page 116

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Sally Beauty Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
Fiscal Years ended September 30, 2011, 2010 and 2009
Level 3—Unobservable inputs for the asset or liability.
Consistent with this hierarchy, the Company categorized certain of its financial assets and liabilities as
follows at September 30, 2011 and 2010 (in thousands):
As of September 30, 2011
Total Level 1 Level 2 Level 3
Assets
Foreign currency forwards(a) ...... $ 424 — $ 424 —
Foreign currency collars(a) ........ 680 — 680 —
Total assets ..................... $ 1,104 $ 1,104
Liabilities
Long-term debt(b) .............. $1,420,337 $725,288 $695,049 —
Hedged interest rate swaps(a) ...... 6,450 — 6,450 —
Foreign currency forwards(a) ...... 528 — 528 —
Total liabilities ................... $1,427,315 $725,288 $702,027
As of September 30, 2010
Total Level 1 Level 2 Level 3
Assets
Foreign currency forwards(a) ...... $ 20 — $ 20 —
Foreign currency options(a) ....... 99 — 99 —
Total assets ..................... $ 119 $ 119
Liabilities
Long-term debt(b) .............. $1,596,228 $751,250 $844,978 —
Hedged interest rate swaps(a) ...... 15,530 — 15,530 —
Foreign currency forwards(a) ...... 328 — 328 —
Total liabilities ................... $1,612,086 $751,250 $860,836
(a) Foreign currency options, collars and forwards, and interest rate swaps are valued for
purposes of this disclosure using widely accepted valuation techniques, such as discounted
cash flow analyses, and reasonable estimates, such as projected market interest rates and
projected foreign currency exchange rates, as appropriate. Please see Note 16 for more
information about the Company’s foreign currency options, collars and forwards, and
interest rate swaps.
(b) Long-term debt, which is carried at amortized cost in the Company’s consolidated financial
statements, is generally valued for purposes of this disclosure using widely accepted
valuation techniques, such as discounted cash flow analyses, and observable inputs, such as
market interest rates, except for the senior and senior subordinated notes. The senior and
senior subordinated notes are valued using unadjusted quoted market prices for such debt
securities.
F-16