14. Condensed Consolidating Financial Statements

In connection with the 5.4 percent Senior Notes, the Company is required to provide condensed consolidating financial information for its subsidiary guarantors. Certain of the Company’s wholly-owned domestic subsidiaries have, jointly and severally, fully and unconditionally guaranteed, to each holder of 5.4 percent Senior Notes and the trustee under the Indenture for the 5.4 percent Senior Notes, the full and prompt performance of the Company’s obligations under the indenture and the 5.4 percent Senior Notes, including the payment of principal (or premium, if any) and interest on the 5.4 percent Senior Notes, on an equal and ratable basis.

The subsidiary guarantees are unsecured obligations of each subsidiary guarantor and rank equally in right of payment with all senior indebtedness of that subsidiary guarantor and senior in right of payment to all subordinated indebtedness of that subsidiary guarantor. The subsidiary guarantees are effectively subordinated to any secured indebtedness of the subsidiary guarantor with respect to the assets securing the indebtedness.

In the absence of both default and notice, there are no restrictions imposed by the Company’s 2010 Credit Facility, 5.4 percent Senior Notes, or guarantees on the Company’s ability to obtain funds from its subsidiaries by dividend or loan. The Company has not presented separate financial statements for each of the guarantors, because it has deemed that such financial statements would not provide the investors with any material additional information.

Included in the tables below, are condensed consolidating balance sheets as of November 30, 2010 and August 31, 2011, condensed consolidating statements of operations for the three and nine months ended August 31, 2010 and 2011, and condensed consolidating statements of cash flows for the nine months ended August 31, 2010 and 2011, of: (a) the Parent; (b) the guarantor subsidiaries; (c) the non-guarantor subsidiaries; (d) elimination entries necessary to consolidate Parent with guarantor and non-guarantor subsidiaries; and (e) the Company on a consolidated basis (in thousands).


	Condensed Consolidating Balance Sheet at November 30, 2010
	Parent Company			Combined Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated


Current assets	$	68,252		$	72,696	$	19,309		$	(10,251	)	$	150,006
Property and equipment, net		33,728			1,032,695		310,328			—			1,376,751
Advances to and investments in subsidiaries		2,095,234			660,368		43,722			(2,799,324	)		—
Other assets		4,702			301,223		46,067			—			351,992

Total Assets	$	2,201,916		$	2,066,982	$	419,426		$	(2,809,575	)	$	1,878,749


Current liabilities	$	(10,058	)	$	71,278	$	17,211		$	13,308		$	91,739
Long-term debt		893,108			271,002		213,911			(1,074,947	)		303,074
Deferred income taxes		27,018			234,742		17,881			—			279,641
Other liabilities		2,131			12,825		2,162			—			17,118
Total shareholders’ equity		1,289,717			1,477,135		168,261			(1,747,936	)		1,187,177

Total Liabilities and Shareholders’ Equity	$	2,201,916		$	2,066,982	$	419,426		$	(2,809,575	)	$	1,878,749


	Condensed Consolidating Balance Sheet at August 31, 2011
	Parent Company			Combined Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated


Current assets	$	57,039		$	110,128	$	28,889		$	(18,327	)	$	177,729
Property and equipment, net		31,326			1,034,549		309,921			—			1,375,796
Advances to and investments in subsidiaries		2,041,769			714,619		64,742			(2,821,130	)		—
Other assets		5,319			301,115		80,095			—			386,529

Total Assets	$	2,135,453		$	2,160,411	$	483,647		$	(2,839,457	)	$	1,940,054


Current liabilities	$	(4,631	)	$	126,817	$	34,253		$	(18,469	)	$	137,970
Long-term debt		887,890			175,335		244,181			(1,021,726	)		285,680
Deferred income taxes		47,278			234,742		17,895			—			299,915
Other liabilities		1,143			11,601		2,162			—			14,906
Total shareholders’ equity		1,203,773			1,611,916		185,156			(1,799,262	)		1,201,583

Total Liabilities and Shareholders’ Equity	$	2,135,453		$	2,160,411	$	483,647		$	(2,839,457	)	$	1,940,054


	Condensed Consolidating Statement of Operations For The Three Months Ended August 31, 2010
	Parent Company			Combined Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated


Total revenues	$	644		$	139,298	$	39,359		$	(19,107	)	$	160,194
Total expenses		8,342			109,780		39,606			(19,107	)		138,621
Operating (loss) income		(7,698	)		29,518		(247	)		—			21,573
Interest and other (expense) income, net		(13,741	)		2,291		(1,774	)		(4,444	)		(17,668	)
Net (loss) income		(18,732	)		28,758		(1,973	)		(4,444	)		3,609


	Condensed Consolidating Statement of Operations For The Three Months Ended August 31, 2011
	Parent Company			Combined Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated


Total revenues	$	776		$	76,856		$	37,830		$	34,835		$	150,297
Total expenses		6,652			54,011			34,279			34,835			129,777
Operating (loss) income		(5,876	)		22,845			3,551			—			20,520
Interest and other (expense) income, net		(17,416	)		4,435			(3,565	)		10,991			(5,555	)
Net (loss) income		(34,870	)		33,543			(14	)		10,991			9,650

	Condensed Consolidating Statement of Operations For The Nine Months Ended August 31, 2010
	Parent Company			Combined Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated


Total revenues	$	2,014		$	462,282		$	74,841		$	(84,751	)	$	454,386
Total expenses		23,956			352,813			79,740			(84,751	)		371,758
Operating (loss) income		(21,942	)		109,469			(4,899	)		—			82,628
Interest and other (expense) income, net		(11,510	)		6,436			(7,060	)		(17,738	)		(29,872	)
(Loss) income from continuing operations		(33,074	)		102,081			(11,911	)		(17,738	)		39,358
Net (loss) income		(33,074	)		102,081			(11,958	)		(17,738	)		39,311

	Condensed Consolidating Statement of Operations For The Nine Months Ended August 31, 2011
	Parent Company			Combined Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated


Total revenues	$	2,299		$	394,335		$	72,916		$	(31,807	)	$	437,743
Total expenses		19,440			292,936			73,231			(31,807	)		353,800
Operating (loss) income		(17,141	)		101,399			(315	)		—			83,943
Interest and other (expense) income, net		(19,288	)		13,138			(7,966	)		(25	)		(14,141	)
Net (loss) income		(57,381	)		108,623			(8,259	)		(25	)		42,958

	Condensed Consolidating Statement of Cash Flows For The Nine Months Ended August 31, 2010
	Parent Company			Combined Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated


Net cash (used in) provided by operating activities	$	(53,624	)	$	144,492		$	18,525		$	(184	)	$	109,209
Net cash provided by (used in) investing activities		128,105			(191,510	)		(23,534	)		184			(86,755	)
Net cash used in financing activities		(88,161	)		(3,640	)		—			—			(91,801	)

	Condensed Consolidating Statement of Cash Flows For The Nine Months Ended August 31, 2011
	Parent Company			Combined Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated


Net cash (used in) provided by operating activities	$	(5,441	)	$	167,393		$	14,371		$	(23,724	)	$	152,599
Net cash provided by (used in) investing activities		64,220			(169,324	)		(10,671	)		23,724			(92,051	)
Net cash used in financing activities		(47,226	)		(1,180	)		(429	)		—			(48,835	)