Cash America 2011 Annual Report Download - page 155

Download and view the complete annual report

Please find page 155 of the 2011 Cash America annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 189

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
124
Other Fair Value Disclosures
The carrying amounts and estimated fair values of financial instruments at December 31, 2011 and 2010 were
as follows (dollars in thousands):
Balance at December 31,
2011 2010
Carrying
Value
Estimated
Fair Value
Carrying
Value
Estimated
Fair Value
Financial assets:
Cash and cash equivalents $62,542 $62,542 $38,324 $38,324
Pawn loans 253,519 253,519 218,408 218,408
Consumer loans, net 222,778 222,778 139,377 139,377
Financial liabilities:
Bank lines of credit $280,839 $291,983 $215,025 $211,576
Senior unsecured notes 149,394 147,721 137,507 134,125
2009 Convertible Notes 107,058 220,642 104,172 185,725
Cash and cash equivalents bear interest at market rates and have maturities of less than 90 days. Pawn loans
and consumer loans also have relatively short maturity periods. Since cash and cash equivalents, pawn loans and
consumer loans generally have relatively short maturity periods, their fair value approximates their carrying value.
Pawn loan fee and service charge rates are determined by regulations and bear no valuation relationship to the capital
markets’ interest rate movements. Generally, pawn loans may only be resold to a licensed pawnbroker.
The fair values of the Company’s long-term debt instruments are estimated based on market values for debt
issues with similar characteristics or rates currently available for debt with similar terms. The Company’s senior
unsecured notes have a lower fair market value than the carrying value due to the difference in yield when compared to
recent issuances of similar senior unsecured notes. The 2009 Convertible notes have a higher fair value than carrying
value due to the Company’s stock price as of December 31, 2011 exceeding the applicable conversion price for the
2009 Convertible Notes, thereby increasing the value of the instrument for bondholders.