Cash America 2010 Annual Report Download - page 136

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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
107
20. Fair Value Measurements
Recurring Fair Value Measurements
In accordance with ASC 820-10, Fair Value Measurements and Disclosures, the Company’s assets and
liabilities, which are carried at fair value, are classified in one of the following three categories:
Level 1: Quoted market prices in active markets for identical assets or liabilities.
Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.
Level 3: Unobservable inputs that are not corroborated by market data.
The Company’s financial assets that are measured at fair value on a recurring basis as of December 31, 2010
and 2009 are as follows (in thousands):
December 31, Fair Value Measurements Using
2010 Level 1 Level 2 Level 3
Financial assets:
Interest rate contracts $ 7 $ - $ 7 $ -
Forward currency exchange contracts (577) - (577) -
Nonqualified savings plan assets 7,073 7,073 - -
Marketable equity securities 3,650 3,650 - -
Total $ 10,153 $ 10,723 $ (570) $ -
December 31, Fair Value Measurements Using
2009 Level 1 Level 2 Level 3
Financial assets:
Interest rate contracts $ 143 $ - $ 143 $ -
Forward currency exchange contracts (88) - (88) -
Nonqualified savings plan assets 5,159 5,159 - -
Total $ 5,214 $ 5,159 $ 55 $ -
The Company measures the value of its interest rate contracts and forward currency exchange contracts under
Level 2 inputs as defined by ASC 820-10. For its interest rate contracts the Company relies on a mark-to-market
valuation based on yield curves using observable market interest rates for the interest rate contracts. For its forward
currency exchange contracts, standard valuation models are used to determine fair value. The significant inputs used
in these models are derived from observable market transactions. The fair value of the nonqualified savings plan assets
and marketable equity securities are measured under a Level 1 input. These assets are publicly traded equity securities
for which market prices are readily observable. During the years ended December 31, 2010 and 2009, there were no
transfers of assets in or out of Level 1 or Level 2 fair value measurements.