Thrifty Car Rental 2011 Annual Report Download - page 73

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The amount of gain (loss), net of tax and reclassification, recognized on the derivative in other
comprehensive income (loss) (“OCI”) and the amount of the gain (loss) reclassified from
Accumulated OCI (“AOCI”) into income (loss) for the years ended December 31, 2011 and
2010 are as follows (in thousands):
2011 2010 2011 2010
Years Ended
December 31,
Interest rate contracts 10,259$ 5,543$ (14,229)$ (14,069)$
Total 10,259$ 5,543$ (14,229)$ (14,069)$
Interest expense, net of
interest income
Derivatives in Cash
Flow Hedging
Relationships
Amount of Gain or (Loss)
Recognized in OCI on
Derivative (Effective Portion)
Amount of Gain or (Loss)
Reclassified from AOCI into
Income (Effective Portion)
Location of (Gain) or Loss
Reclassified from AOCI in
Income (Effective Portion)
At December 31, 2011, the Company no longer has an interest rate contract related to the 2007
Swap due to its early termination on December 28, 2011, and no ineffectiveness was recorded
in income during 2011. Additionally, $0.4 million, net of tax, was reclassified from AOCI related
to the discontinuance of a cash flow hedge during 2011.
10. FAIR VALUE MEASUREMENTS
Financial instruments are presented at fair value in the Company’s balance sheets. Fair value
is defined as the price which would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. Assets and
liabilities recorded at fair value in the balance sheets are categorized based upon the level of
judgment associated with the inputs used to measure their fair values. These categories
include (in descending order of priority): Level 1, defined as observable inputs such as quoted
prices in active markets; Level 2, defined as inputs other than quoted prices in active markets
that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in
which little or no market data exists, therefore requiring an entity to develop its own
assumptions.
The following tables show assets and liabilities measured at fair value on a recurring basis as
of December 31, 2011 and 2010 on the Company’s balance sheet, and the input categories
associated with those assets and liabilities:
Total Fair Quoted Prices in Significant Other Significant
(in thousands) Value Assets Active Markets for Observable Unobservable
(Liabilities) Identical Assets Inputs Inputs
Description at 12/31/11 (Level 1) (Level 2) (Level 3)
Derivative Assets 548$ -$ 548$ -$
Deferred Compensation
Plan Assets (a) 5,752 5,752 - -
Total 6,300$ 5,752$ 548$ -$
Fair Value Measurements at Reporting Date Using