FAIR VALUE MEASUREMENTS

Fair value can be measured using valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). Accounting standards utilize a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:


•	Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.


•	Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.


•	Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.

Our population of financial assets and liabilities subject to fair value measurements on a recurring basis are as follows (in millions):



			August 31, 2014
	Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	93.8	$	93.8	$	—	$	—
Insurance contracts	103.3		—		103.3		—
Bonds and other long-term investments	8.2		8.2		—		—
Interest rate derivatives	7.3		—		7.3		—
Foreign currency derivatives	1.6		—		1.6		—
Total	$	214.2	$	102.0	$	112.2	$	—
Liabilities
Foreign currency derivatives	$	0.8	$	—	$	0.8	$	—



			August 31, 2013
	Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	146.8	$	146.8	$	—	$	—
Insurance contracts	84.3		—		84.3		—
Bonds and other long-term investments	13.0		13.0		—		—
Interest rate derivatives	11.5		—		11.5		—
Foreign currency derivatives	1.4		—		1.4		—
Total	$	257.0	$	159.8	$	97.2	$	—
Liabilities
Foreign currency derivatives	$	1.0	$	—	$	1.0	$	—



			November 30, 2013
	Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	63.0	$	63.0	$	—	$	—
Insurance contracts	90.1		—		90.1		—
Bonds and other long-term investments	13.3		13.3		—		—
Interest rate derivatives	12.2		—		12.2		—
Foreign currency derivatives	1.1		—		1.1		—
Total	$	179.7	$	76.3	$	103.4	$	—
Liabilities
Foreign currency derivatives	$	1.6	$	—	$	1.6	$	—

The fair values of insurance contracts are based upon the underlying values of the securities in which they are invested and are from quoted market prices from various stock and bond exchanges for similar type assets. The fair values of bonds and other long-term investments are based on quoted market prices from various stock and bond exchanges. The fair values for interest rate and foreign currency derivatives are based on values for similar instruments using models with market based inputs.