Cash America 2009 Annual Report Download - page 137

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
109
equivalent value of $8.8 million. Any gain or loss resulting from these forward contracts is recorded as
income or loss and is included in “Foreign currency transaction gain (loss)” in the Company’s consolidated
statement of income. For the year ended December 31, 2009, the Company recorded losses of $0.5 million
related to these forward contracts. The Company does not currently manage its exposure to risk from foreign
currency exchange rate fluctuations through the use of foreign exchange forward contracts in the currencies of
the United Kingdom, Australia or Canada. As the Company’s foreign operations continue to grow,
management will continue to evaluate and implement foreign exchange rate risk management strategies.
Derivatives designated as hedges under ASC 815
Amount of Gain or (Loss)
N
et of Tax, Recognized in
Other Comprehensive
Income on Derivative
(Effective Portion)
Amount of Gain or
(Loss) Net of Tax,
Recognized in Income
on Derivative
(Ineffective Portion)
Cash Flow Hedging
Relationships
Balance Sheet Location 2009 2008 2009 2008
Interest rate cap
Other receivables and prepaid
expenses $ 54 $(68) $ - $ -
Total $ 54 $(68) $ - $ -
14. Stock-Based Compensation
Under the equity compensation plan (the “Plan”) that the Company sponsors, it is authorized to issue
2,700,000 shares of Common Stock pursuant to “Awards” granted as incentive stock options (intended to
qualify under Section 422 of the Internal Revenue Code of 1986, as amended), nonqualified stock options,
restricted stock units, restricted stock, performance shares, stock appreciation rights or other stock-based
awards. Since 2004 only restricted stock unit awards have been granted under the Plan. At December 31,
2009, 2,184,569 shares were available for future grants under the Plan.
Historically, the Company has purchased its shares on the open market from time to time pursuant to
an authorization from the Board of Directors of the Company and reissued those shares upon stock option
exercises and stock unit conversions under its stock-based compensation plans. During 2009, 394,476 shares
were purchased on the open market with an average purchase price of $27.24 per share.
During 2009, 2008 and 2007, the Company received net proceeds totaling $1.6 million, $0.7 million
$0.8 million from the exercise of stock options for 161,700, 56,805, and 69,854 shares, respectively.
The Company received 25,582 shares, 23,901 shares and 9,794 shares during 2009, 2008 and 2007,
respectively, of its common stock valued at approximately $0.5 million, $0.8 million and $0.4 million,
respectively, as partial payment of taxes for shares issued under stock-based compensation plans. During 2009,
the Company received 1,196 shares valued at approximately $39,000 as partial payment for the exercise of stock
options.
Stock Options • While no stock options have been granted since April 2003, stock options currently
outstanding under the Plans had original contractual terms of up to ten years with an exercise price equal to or
greater than the fair market value of the stock at grant date. On their respective grant dates, these stock
options had vesting periods ranging from one to seven years. However, the terms of options with the seven-
year vesting periods and certain of the four-year and five-year vesting periods included provisions that