Fair Value Measurements

9 Months Ended

Feb. 29, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 3: Fair Value Measurements

We measure certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents, supplemental executive retirement plan assets and liabilities, and foreign currency derivatives. The fair value of financial assets and liabilities can be determined based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, as follows:

Level 1 – Observable inputs, such as quoted prices in active markets for identical assets or liabilities;

Level 2 – Inputs, other than the quoted prices in active markets, that are observable either directly or through corroboration with observable market data; and

Level 3 – Unobservable inputs, for which there is little or no market data for the assets or liabilities, such as internally-developed valuation models.

Our assets and liabilities measured at fair value on a recurring basis were determined as follows:

		00000000		00000000		00000000		00000000
	At February 29, 2012
	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Balance
Assets
Money market funds	$	7	$	—	$	—	$	7
Supplemental executive retirement plan		2,566		—		—		2,566
Total assets measured at fair value	$	2,573	$	—	$	—	$	2,573
Liabilities
Supplemental executive retirement plan	$	2,566	$	—	$	—	$	2,566
Foreign exchange forward contracts		—		51		—		51
Total liabilities measured at fair value	$	2,566	$	51	$	—	$	2,617

		00000000		00000000		00000000		00000000
	At May 31, 2011
	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Balance
Assets
Money market funds	$	32,868	$	—	$	—	$	32,868
Supplemental executive retirement plan		2,671		—		—		2,671
Foreign exchange forward contracts		—		15		—		15
Total assets measured at fair value	$	35,539	$	15	$	—	$	35,554
Liabilities
Supplemental executive retirement plan	$	2,671	$	—	$	—	$	2,671
Total liabilities measured at fair value	$	2,671	$	—	$	—	$	2,671

The fair value measures for our money market funds and supplemental executive retirement plan asset and liability were derived from quoted market prices in active markets and are included in Level 1 inputs. Foreign currency forward contracts were valued based on observable market spot and forward rates as of our reporting date and are included in Level 2 inputs.

The following table presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis, excluding accrued interest components, using significant unobservable inputs (Level 3):

	Nine Months Ended February 28, 2011
	Put Option			Auction Rate Securities
Fair value at beginning of period	$	952		$	13,323
Settlements (at par)		—			(14,275	)
Realized gains (losses) included in interest income, net		(952	)		952
Fair value at end of period	$	—		$	—

During the first quarter of fiscal 2011, we sold our remaining Auction Rate Securities (“ARS”) to UBS AG (“UBS”) at par plus accrued interest, for $14,275 in cash when we exercised our put right (the “Put Option”) under a November 2008 settlement agreement (“Agreement”) with UBS. As a result, we included in earnings a realized gain of $952 attributable to the sale and a realized loss of $952 attributable to the Put Option. The ARS were long-term debt instruments backed by student loans, a substantial portion of which were guaranteed by the United States government. The ARS and Put Option were valued from quotes received from our broker, UBS, which were derived from UBS’s internally developed model. In accordance with accounting guidance, which permits an entity to elect the fair value option for financial assets and liabilities, we elected to measure the Put Option at fair value in order to match the changes in the fair value of the ARS. There was no Level 3 activity during the nine months ended February 29, 2012.