FAIR VALUE DISCLOSURES

6 Months Ended

Sep. 30, 2011

Fair Value Disclosures [Abstract]

FAIR VALUE DISCLOSURES

Note 5 — FAIR VALUE DISCLOSURES

Assets and liabilities subject to fair value measurement are categorized into one of three different levels depending on the observability of the inputs employed in the measurement, as follows:

• Level 1 –observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
• Level 2 – inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the asset or liability; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.
• Level 3 –unobservable inputs reflecting the Company's own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

Non-recurring Fair Value Measurements

The majority of our non-financial assets, which include inventories, property and equipment, goodwill and other intangible assets, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur such that a non-financial asset is required to be evaluated for impairment and deemed to be impaired, the impaired non-financial asset is recorded as its fair value. We had no impaired assets during the three and six months ended September 30, 2010.

The following table summarizes the assets as of September 30, 2011, which are valued at fair value on a non-recurring basis (in thousands):

		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of September 30, 2011		Total Gain (Loss) for the Three and Six Months Ended September 30, 2011
Inventories		$	0	$	48,801	$	0	$	48,801	$	(24,610)
Assets held for sale			649		0		0		649		(400)
	Total assets	$	649	$	48,801	$	0	$	49,450	$	(25,010)

The fair value of inventories using Level 2 inputs is determined by evaluating the current economic conditions for sale and disposal of spare parts, which includes estimates as to the recoverability of the carrying value of the parts based on historical experience with sales and disposal of similar spare parts, the expected timeframe of sales or disposals, the location of the spare parts to be sold and the condition of the spare parts to be sold or otherwise disposed of. See Note 1 for further discussion of the impairment of inventories. The fair value of the assets held for sale is the sales price of these aircraft which are Level 1.

Recurring Fair Value Measurements

The following table summarizes the financial instruments we had as of September 30,2011, which are valued at fair value on a recurring basis (in thousands):

		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of September 30, 2011		Balance Sheet Classification
Rabbi Trust investments			3,088		0		0		3,088	Other assets
	Total assets	$	3,088	$	0	$	0	$	3,088

The following table summarizes the financial instruments we had as of March 31, 2011, which are valued at fair value on a recurring basis (in thousands):

		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of March 31, 2011		Balance Sheet Classification
Derivative asset		$	0	$	3,306	$	0	$	3,306	Prepaid expenses and other current assets
Rabbi Trust investments			4,091		0		0		4,091	Other assets
	Total assets	$	4,091	$	3,306	$	0	$	7,397

The rabbi trust investments consist of money market and mutual funds whose fair value is based on quoted prices in active markets for identical assets, and are designated as Level 1 within the valuation hierarchy. The rabbi trust holds investments related to our non-qualified deferred compensation plan for our senior executives. The methods and assumptions used to estimate the fair values of the derivative assets in the table above include the mark-to-market statements from the counterparties, which can be validated using modeling techniques that include market inputs, such as publicly available forward market rates, and are designated as Level 2 within the valuation hierarchy.

Fair Value of Financial Instruments

The fair value of our financial instruments has been estimated in accordance with the accounting standard regarding fair value. The fair value of our fixed rate long-term debt is estimated based on quoted market prices. The carrying and fair value of our long-term debt, including the current portion, are as follows (in thousands):

	September 30, 2011				March 31, 2011
	Carrying Value		Fair Value		Carrying Value		Fair Value
7 ½% Senior Notes	$	350,378	$	357,000	$	350,410	$	367,500
Term Loan		200,000		200,000		200,000		200,000
Revolving Credit Facility		87,800		87,800		30,000		30,000
3% Convertible Senior Notes		100,885		113,419		99,219		114,929
Other		25,297		25,297		27,832		27,832
	$	764,360	$	783,516	$	707,461	$	740,261

Other

The fair values of our cash and cash equivalents, accounts receivable and accounts payable approximate their carrying value due to the short-term nature of these items.