Financial Instruments

9 Months Ended

Aug. 31, 2011

Financial Instruments

7. Financial Instruments

Various inputs are considered when determining the carrying values of cash and cash equivalents, accounts receivable, short-term investments, accounts payable, and accrued liabilities which approximate fair value due to the short-term maturities of these assets and liabilities. These inputs are summarized in the three broad levels listed below:

• Level 1—observable market inputs that are unadjusted quoted prices for identical assets or liabilities in active markets

• Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, credit risk, etc.)

• Level 3—significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments)

At August 31, 2011, the Company had money market funds totaling approximately $69.4 million which are included in cash and cash equivalents in its consolidated balance sheets. All inputs used to determine fair value are considered level 1 inputs.

Fair values of long-term debt are based on quoted market prices at the date of measurement. The Company’s credit facilities approximate fair value as they bear interest rates that approximate market. These inputs used to determine fair value are considered level 2 inputs. The fair value of the remaining long-term debt, as determined by quotes from financial institutions, was approximately $203.6 million compared to the carrying amount of approximately $204.3 million and approximately $266.9 million compared to the carrying amount of approximately $267.7 million at November 30, 2010 and August 31, 2011, respectively.

The Company had no level 3 inputs as of August 31, 2011.