Fair Value Of Financial Instruments

12 Months Ended

Dec. 31, 2011

Fair Value Of Financial Instruments [Abstract]

Fair Value Of Financial Instruments

9.     Fair Value of Financial Instruments

The Company's financial instruments consist primarily of cash and cash equivalents, marketable securities, trade receivables, finance receivables, net, trade payables, debt, foreign currency contracts and interest rate swaps (derivative instruments are discussed further in Note 11). Under U.S. GAAP certain of these items are required to be recorded in the financial statements at fair value, while others are required to be recorded at historical cost.

The following table summarizes the fair value and carrying value of the Company's financial instruments at December 31 (in thousands):

	2011				2010
	Fair Value		Carrying Value		Fair Value		Carrying Value
Assets:
Cash and cash equivalents	$	1,526,950	$	1,526,950	$	1,021,933	$	1,021,933
Marketable securities	$	153,380	$	153,380	$	140,118	$	140,118
Accounts receivable, net	$	219,039	$	219,039	$	262,382	$	262,382
Derivatives	$	16,443	$	16,443	$	37	$	37
Finance receivables, net	$	5,888,040	$	5,786,681	$	6,120,682	$	6,017,569
Restricted cash held by variable interest entities	$	229,655	$	229,655	$	288,887	$	288,887
Liabilities:
Accounts payable	$	255,713	$	255,713	$	225,346	$	225,346
Derivatives	$	5,136	$	5,136	$	20,083	$	20,083
Unsecured commercial paper	$	874,286	$	874,286	$	582,572	$	582,572
Credit facilities	$	159,794	$	159,794	$	213,772	$	213,772
Medium-term notes	$	2,561,458	$	2,298,193	$	2,018,429	$	1,897,778
Senior unsecured notes	$	376,513	$	303,000	$	395,384	$	303,000
Term asset-backed securitization debt	$	2,099,060	$	2,087,346	$	2,805,954	$	2,755,234

Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, Net and Accounts Payable – With the exception of certain money-market investments, these items are recorded in the financial statements at historical cost. The historical cost basis for these amounts is estimated to approximate their respective fair values due to the short maturity of these instruments.

Marketable Securities – Marketable securities are recorded in the financial statements at fair value. The fair value of marketable securities is based primarily on quoted market prices. Changes in fair value are recorded, net of tax, as other comprehensive income and included as a component of shareholders' equity.

Finance Receivables, Net – Finance receivables, net includes finance receivables, net and restricted finance receivables held by VIEs, net. Retail and wholesale finance receivables are recorded in the financial statements at historical cost less an allowance for finance credit losses. The fair value of retail finance receivables is generally calculated by discounting future cash flows using an estimated discount rate that reflects current credit, interest rate and prepayment risks associated with similar types of instruments. The historical cost basis of wholesale finance receivables approximates fair value because they either are short-term or have interest rates that adjust with changes in market interest rates.

Derivatives – Interest rate swaps and foreign currency exchange contracts are derivative financial instruments and are carried at fair value on the balance sheet. The fair value of interest rate swaps is determined using pricing models that incorporate quoted prices for similar assets and observable inputs such as interest rates and yield curves. The fair value of foreign currency exchange contracts is determined using publicly quoted spot and forward prices.

Debt – Debt is generally recorded in the financial statements at historical cost. The carrying value of debt provided under credit facilities approximates fair value since the interest rates charged under the facilities are tied directly to market rates and fluctuate as market rates change. The carrying value of unsecured commercial paper approximates fair value due to its short maturity.

The fair values of the medium-term notes are estimated based upon rates currently available for debt with similar terms and maturities.

The fair value of the senior unsecured notes is estimated based upon rates currently available for debt with similar terms and remaining maturities.

The fair value of the debt related to term asset-backed securitization transactions is estimated based on pricing currently available for transactions with similar terms and maturities.