FAIR VALUE

6 Months Ended

Sep. 30, 2011

FAIR VALUE [Abstract]

FAIR VALUE

NOTE 3 – FAIR VALUE

Fair Value Disclosures

The Company carries certain financial instruments (derivative assets and liabilities) at fair value on a recurring basis. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company determines the fair values of its financial instruments based on the fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Financial assets and liabilities measured at fair value are grouped in three levels. The levels prioritize the inputs used to measure the fair value of the assets or liabilities.  These levels are:

● Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.

● Level 2 – Inputs other than quoted prices that are observable for assets and liabilities, either directly or indirectly. These inputs include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are less active.

● Level 3 – Unobservable inputs for assets or liabilities reflecting the reporting entity's own assumptions.

The following financial liabilities were measured at fair value on a recurring basis at September 30, 2011 and March 31, 2011:

	Fair Value Measurements Using
			Quoted Prices in Active Markets for IdenticalAssets		Significant Other Observable Inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)
Interest rate swap September 30, 2011	$	108,975	$	-	$	108,975	$	-
Interest rate swap March 31, 2011	$	319,235	$	-	$	319,235	$	-

The Company's interest rate swap was valued using the “income approach” valuation technique. This method used valuation techniques to convert future amounts to a single present amount. The measurement was based on the value indicated by current market expectations about those future amounts.

Fair Value of Long-Term Debt

The book value and estimated fair value of our long-term debt was as follows (in thousands):

	September 30,		March 31,
	2011		2011
Book value:
Senior Note Payable	$	232,600		82,250
Junior Subordinated Note Payable		50,000		30,000
Convertible Notes		77,000		75,180
	$	359,600		187,430
Estimated fair value:
Senior Note Payable	$	232,600		82,250
Junior Subordinated Note Payable		50,000		30,000
Convertible Notes		77,000		85,616
	$	359,600		197,866

The difference between the estimated fair value of long-term debt compared with its historical cost reported in our Condensed Consolidated Balance Sheets at March 31, 2011 relates primarily to market quotations for the Company's 3% Convertible Senior Subordinated Notes due October 1, 2011.  Since the Convertible Senior Subordinated Notes matured October 1, 2011, the book value approximated the estimated fair value at September 30, 2011.

The carrying value of the senior note payable and the junior subordinated note payable approximated the fair value as the notes payable are at a variable interest rate.

There were no assets or liabilities measured at fair value on a non-recurring basis during the first six months of fiscal 2012 or fiscal 2011.