FINANCIAL INSTRUMENTS

9 Months Ended

Oct. 31, 2011

FINANCIAL INSTRUMENTS

10. FINANCIAL INSTRUMENTS

The estimated fair values of the Company’s financial instruments at October 31, 2011 and January 31, 2011 were as follows:

	October 31, 2011				January 31, 2011
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	6,364	$	6,364	$	3,708	$	3,708
Debt		64,837		64,579		55,387		54,808
Commodity hedges		1,192		1,192		0		0

The following methods and assumptions were used to estimate the fair value of each class of financial instruments:

Cash and cash equivalents – the carrying amount approximates fair value because of the short term maturity of these instruments.

The fair value of accounts receivable, accounts payable and accrued liabilities consistently approximate the carrying value due to the short term maturity of these instruments and are excluded from the table above.

Debt – the fair value of the Notes was determined using available market prices at the balance sheet date. The carrying value of the Company’s remaining long-term debt, including the current portion, approximates fair value based on the incremental borrowing rates currently available to the Company for loans with similar terms and maturity.

Commodity hedges – the fair value was determined using available market prices at the balance sheet date of commodity hedge contracts with similar characteristics and maturity dates.