FAIR VALUE MEASUREMENTS

6 Months Ended

May 31, 2012

FAIR VALUE MEASUREMENTS

4. 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):

			Fair value measurements using fair value hierarchy As of May 31, 2012
	Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	61.4	$	61.4	$	—	$	—
Insurance contracts		63.3		—		63.3		—
Bonds & other long-term investments		12.3		12.3		—		—
Interest rate derivatives		17.9		—		17.9		—
Foreign currency derivatives		1.7		—		1.7		—
Total	$	156.6	$	73.7	$	82.9	$	—
Liabilities
Foreign currency derivatives	$	2.7	$	—	$	2.7	$	—

			Fair value measurements using fair value hierarchy As of May 31, 2011
	Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	47.9	$	47.9	$	—	$	—
Insurance contracts		61.9		—		61.9		—
Bonds & other long-term investments		12.9		12.9		—		—
Interest rate derivatives		17.7		—		17.7		—
Foreign currency derivatives		3.5		—		3.5		—
Total	$	143.9	$	60.8	$	83.1	$	—
Liabilities
Foreign currency derivatives	$	2.7		—	$	2.7		—
Interest rate derivatives		0.9		—		0.9		—
Total	$	3.6	$	—	$	3.6	$	—

			Fair value measurements using fair value hierarchy As of November 30, 2011
	Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	53.9	$	53.9	$	—	$	—
Insurance contracts		59.1		—		59.1		—
Bonds & other long-term investments		12.3		12.3		—		—
Interest rate derivatives		18.9		—		18.9		—
Foreign currency derivatives		2.7		—		2.7		—
Total	$	146.9	$	66.2	$	80.7	$	—
Liabilities
Foreign currency derivatives	$	0.4	$	—	$	0.4	$	—

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.