Fair Value

12 Months Ended

Aug. 31, 2012

Fair Value Disclosures [Abstract]

Fair value

NOTE 12. FAIR VALUE

The Company has established a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three levels. These levels are determined based on the lowest level input that is significant to the fair value measurement. When available, the Company uses unadjusted quoted market prices in active markets to measure the fair value and classifies such items within Level 1. If quoted market prices are not available, fair value is based upon internally developed models that use current market-based or independently sourced market parameters. Items valued using internally generated models are classified according to the lowest level input or value driver that is significant to the valuation. Fair value of nonqualified benefit plan liabilities in Level 2 is measured based on investments selections from plan participants. The following table summarizes information regarding the Company’s financial assets and financial liabilities that were measured at fair value on a recurring basis:

			Fair Value Measurements at Reporting Date Using
(in thousands)	August 31, 2012		Quoted Prices in Active Markets  for Identical Assets (Level 1)		Significant  Other Observable Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
Money market investments	$	172,462	$	172,462	$	—	$	—
Derivative assets	1,875		407		1,468		—
Nonqualified benefit plan assets *	52,929		52,929		—		—
Derivative liabilities	3,547		993		2,554		—
Nonqualified benefit plan liabilities *	76,952		—		76,952		—

			Fair Value Measurements at Reporting Date Using
(in thousands)	August 31, 2011		Quoted Prices in Active Markets  for Identical Assets (Level 1)		Significant  Other Observable  Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
Money market investments	$	153,839	$	153,839	$	—	$	—
Derivative assets	52,858		2,329		50,529		—
Nonqualified benefit plan assets *	49,357		49,357		—		—
Derivative liabilities	5,688		2,625		3,063		—
Nonqualified benefit plan liabilities *	81,167		—		81,167		—

 _________________ 

* The Company provides a nonqualified benefit restoration plan to certain eligible executives equal to amounts that would have been available under tax qualified ERISA plans but for limitations of ERISA, tax laws and regulations. Though under no obligation to fund this plan, the Company has segregated assets in a trust. The plan assets and liabilities consist of securities included in various mutual funds.

Fair value of property, plant and equipment held for sale (Level 3) were $9.0 million based on appraised values less costs to sell at August 31, 2012. CMC does not have other assets or intangible assets measured at fair value on a non-recurring basis at August 31, 2012. Impairment charges for property, plant and equipment were $3.3 million for the year ended August 31, 2012. The following table summarizes information regarding the Company's nonfinancial assets measured at fair value on a non-recurring basis at August 31, 2011:

			Fair Value Measurements Using
	Year Ended August 31,		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Recognized
(in thousands)	2011		(Level 1)		(Level 2)		(Level 3)		Loss
Plant, property and equipment	$	56,795	$	—	$	—	$	56,795	$	89,448
Other assets	2,472		—		—		2,472		18,557
Intangible assets	3,271		—		—		3,271		12,140

The Company’s long-term debt is predominantly publicly held. The fair value was approximately $1.22 billion at August 31, 2012 and $1.24 billion at 2011. Fair value was determined by indicated market values.