Cash America 2012 Annual Report Download - page 167

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
142
22. Fair Value Measurements
Recurring Fair Value Measurements
In accordance with ASC 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”), certain of 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, 2012
and 2011 are as follows (dollars in thousands):
December 31, Fair Value Measurements Using
2012 Level 1 Level 2 Level 3
Financial assets (liabilities):
Interest rate contracts1 $ - $ - $ - $ -
Forward currency exchange contracts 1 (406) - (406) -
Nonqualified savings plan assets (a) 11,347 11,347 - -
Marketable securities(b) 6,042 6,042 - -
Total $ 16,983 $ 17,389 $ (406) $ -
December 31, Fair Value Measurements Using
2011 Level 1 Level 2 Level 3
Financial assets (liabilities):
Forward currency exchange contracts 260 - 260 -
Nonqualified savings plan assets (a) 8,264 8,264 - -
Marketable securities(b) 4,412 4,412 - -
Total $ 12,936 $ 12,676 $ 260 $ -
(a)a
a
The nonqualified savings plan assets have an offsetting liability of equal amount, which is included in "Accounts payable and
accrued expenses" in the Company's consolidated balance sheets.
(b)a
a
a
Cumulative unrealized total gains/(losses), net of tax, on these equity securities of $0.3 million and ($0.8) million as of
December 31, 2012 and 2011, respectively, are recorded in "Accumulated other comprehensive income (loss)" in the
Company's consolidated statements of equity.
The Company measures the fair value of its forward currency exchange contracts under Level 2 inputs as
defined by ASC 820-10. For these 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.
During the year ended December 31, 2012 and 2011, there were no transfers of assets in or out of Level 1 or Level 2
fair value measurements.
Fair Value Measurements on a Non-Recurring Basis
The Company measures non-financial assets and liabilities such as property and equipment and intangible
assets at fair value on a nonrecurring basis or when events or circumstances indicate that the carrying amount of the
assets may be impaired. During the third quarter of 2012, the Company announced the Mexico Reorganization. See
Note 4 for further information related to this reorganization. The Mexico Reorganization was considered a triggering
event for purposes of impairment testing of the retail services segment. The Company tested property and equipment
and intangible assets for impairment following the approval of the reorganization plan by the Company’s Board of