Sally Beauty Supply 2013 Annual Report Download - page 117

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Sally Beauty Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
Fiscal Years ended September 30, 2013, 2012 and 2011
Consistent with this hierarchy, the Company categorized certain of its financial assets and liabilities as
follows at September 30, 2013 and 2012 (in thousands):
As of September 30, 2013
Total Level 1 Level 2 Level 3
Assets
Cash equivalents(a) ............. $ — $ — $ — —
Foreign exchange contracts(b) ..... 152 — 152 —
Total assets ..................... $ 152 $ — $ 152 —
Liabilities
Long-term debt(c) .............. $1,753,822 $1,671,500 $82,322 —
Foreign exchange contracts(b) ..... 36 — 36 —
Total liabilities .................. $1,753,858 $1,671,500 $82,358 —
As of September 30, 2012
Total Level 1 Level 2 Level 3
Assets
Cash equivalents(a) ............. $ 155,000 $ 155,000 $ — —
Foreign exchange contracts(b) ..... 4 — 4 —
Total assets ..................... $ 155,004 $ 155,000 $ 4 —
Liabilities
Long-term debt(c) .............. $1,739,547 $1,731,625 $7,922 —
Foreign exchange contracts(b) ..... 132 — 132 —
Total liabilities .................. $1,739,679 $1,731,625 $8,054 —
(a) Cash equivalents, at September 30, 2012, consist of highly liquid investments which have no
maturity and are valued using unadjusted quoted market prices for such securities. The
Company may from time to time invest in securities with maturities of three months or less
(consisting primarily of investment-grade corporate or government bonds), with the primary
investment objective of minimizing the potential risk of loss of principal.
(b) Foreign exchange contracts (including foreign currency forwards and options) are valued for
purposes of this disclosure using widely accepted valuation techniques, such as discounted
cash flow analyses, and reasonable estimates, such as market foreign currency exchange
rates. Please see Note 14 for more information about the Company’s foreign exchange
contracts.
(c) Long-term debt (including current maturities and borrowings under the ABL facility) is
carried in the Company’s consolidated financial statements at amortized cost of
$1,690.7 million at September 30, 2013 and $1,617.2 million at September 30, 2012. The
senior notes due 2019 and senior notes due 2022 are valued for purposes of this disclosure
using unadjusted quoted market prices for such debt securities. Other long-term debt
(consisting primarily of borrowings under the ABL facility and capital lease obligations), is
generally valued for purposes of this disclosure using widely accepted valuation techniques,
such as discounted cash flow analyses, and observable inputs such as market interest rates.
Please see Note 13 for more information about the Company’s debt.
F-15