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Fair Value Measurements
9 Months Ended
Feb. 29, 2012
Fair Value Measurements [Abstract]  
Fair Value Measurements

14. Fair Value Measurements

We determine the fair market values of our derivative contracts and certain other assets and liabilities based on the fair value hierarchy, described below, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels within the fair value hierarchy that may be used to measure fair value:

Level 1: Values based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities.

Level 2: Values based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, or model-based valuation techniques for which all significant assumptions are observable in the market.

Level 3: Values generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents assets and liabilities included in our Condensed Consolidated Balance Sheets that are recognized at fair value on a recurring basis, and indicates the fair value hierarchy utilized to determine such fair value.

    February 29, 2012
     Total  Level 1  Level 2  Level 3
 Assets            
 Foreign currency derivatives $ 21.3 $ 1.3 $ 20.0 $ -
 Commodity derivatives   5.2   0.1   5.1   -
 Freight derivatives   2.0   -   -   2.0
  Total assets at fair value $ 28.5 $ 1.4 $ 25.1 $ 2.0
               
 Liabilities            
 Foreign currency derivatives $ 8.5 $ 3.2 $ 5.3 $ -
 Commodity derivatives   32.9   -   32.9   -
 Freight derivatives   2.2   -   -   2.2
  Total liabilities at fair value $ 43.6 $ 3.2 $ 38.2 $ 2.2

We did not significantly change our valuation techniques from prior periods.

 

Financial Instruments

The carrying amounts and estimated fair values of our financial instruments are as follows:

   February 29, 2012  May 31, 2011
   Carrying  Fair  Carrying  Fair
   Amount  Value  Amount  Value
Cash and cash equivalents $ 3,201.9 $ 3,201.9 $ 3,906.4 $ 3,906.4
Receivables, net   656.3   656.3   926.0   926.0
Short-term debt   81.6   81.6   23.6   23.6
Accounts payable    800.5   800.5   941.1   941.1
Long-term debt, including current maturities   1,011.7   1,099.5   809.3   881.5

For cash and cash equivalents, receivables, net, accounts payable and short-term debt, the carrying amount approximates fair value because of the short-term maturity of those instruments. The fair value of long-term debt is estimated using a present value method based on current interest rates for similar instruments with equivalent credit quality, as well as market prices for our publicly traded debt instruments.