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FAIR VALUE DISCLOSURES
 9 Months Ended
Dec. 31, 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 impaired no assets during the three and nine months ended December 31, 2010.

The following table summarizes the assets as of December 31, 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 December 31, 2011 Total Gain (Loss) for the Three Months Ended December 31, 2011 Total Gain (Loss) for the Nine Months Ended December 31, 2011 
Inventories $0 $48,801 $0 $48,801 $0 $(24,610) 
Assets held for sale  1,200  0  0  1,200  (2,290)  (2,690) 
 Total assets  $1,200 $48,801 $0 $50,001 $ (2,290) $ (27,300) 

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 expected sales price, less cost to sell, of these aircraft, which are Level 1 inputs.

Recurring Fair Value Measurements

The following table summarizes the financial instruments we had as of December 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 December 31, 2011 Balance Sheet Classification
Rabbi Trust investments  $3,260 $0 $0 $3,260 Other assets
 Total assets  $3,260 $0 $0 $3,260   

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 funds and equity and fixed income 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):

 

  December 31, 2011 March 31, 2011
  Carrying Value Fair Value Carrying Value Fair Value
7 ½% Senior Notes  $350,363 $363,125 $350,410 $367,500
Term Loan   247,500  247,500  200,000  200,000
Revolving Credit Facility   109,300  109,300  30,000  30,000
3% Convertible Senior Notes   101,726  117,084  99,219  114,929
Other   23,897  23,898  27,832  27,832
  $832,786 $860,907 $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.