Fair Value

9 Months Ended

Jun. 30, 2011

Fair Value

Fair Value

10. FAIR VALUE

The Company determines the fair value of natural gas and raw sugar futures contracts and marketable securities using quoted market prices for the individual securities. The following table presents the Company's assets and liabilities measured and recognized at fair value on a recurring basis classified at the appropriate level of the fair value hierarchy as of June 30, 2011 and September 30, 2010 (in thousands of dollars):

	June 30, 2011
	Fair Value						Margin Requirements Settled in Cash			Balance Sheet Total
	Level 1		Level 2		Level 3
Current Assets:
No. 16 Domestic Sugar Futures Contracts	$	3,072		—		—	$	(3,072	)		—
Natural Gas		35		—		—		(35	)		—
Marketable Securities		194		—		—		—		$	194
Current Liabilities:
No. 16 Domestic Sugar Futures Contracts		1,337		—		—		(1,337	)		—
No. 11 World Sugar Futures Contracts		1		—		—		(1	)		—
Natural Gas		32		—		—		(32	)		—
Non-Current Assets:
No. 16 Domestic Sugar Futures Contracts		1,567		74		—		(1,641	)		—
Natural Gas		4		—		—		(4	)		—
Non-Current Liabilities:
No. 16 Domestic Sugar Futures Contracts		3		—		—		(3	)		—
Natural Gas		1		—		—		(1	)		—
	September 30, 2010
	Fair Value						Margin Requirements Settled in Cash			Balance Sheet Total
	Level 1		Level 2		Level 3
Current Assets:
No. 16 Domestic Sugar Futures Contracts	$	22,027		—		—	$	(22,027	)		—
No. 11 World Sugar Futures Contracts		333		—		—		(333	)
Marketable Securities		198		—		—		—		$	198
Current Liabilities:
No. 11 World Sugar Futures Contracts		194		—		—		(194	)		—
Natural Gas		333		—		—		(333	)		—
Non-Current Assets:
No. 16 Domestic Sugar Futures Contracts		25		—		—		(25	)		—
Non-Current Liabilities:
No. 16 Domestic Sugar Futures Contracts		276		—		—		(276	)		—

Fair value hierarchy levels are as follows:

• Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

• Level 2—Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly;

• Level 3—Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. These inputs may be used with internally developed methodologies that are used to generate management's best estimate of fair value.

The Company uses the market approach in determining the fair value of our Level 1 and Level 2 assets and liabilities. Valuation of Level 2 domestic sugar futures contracts is based on the pricing of the Intercontinental Exchange (ICE) Sugar No. 16 futures contract. The Company's policy for determining when transfers between levels are recognized is to do so at the end of each reporting period. Due to increased activity of trading in certain No. 16 domestic sugar futures contracts, the Company transferred contracts with a June 30, 2011 fair value of $4.6 million from Level 2 to Level 1 during the three months ended June 30, 2011. There were no significant transfers between Level 1 and Level 2 for the nine months ended June 30, 2011 or the three and nine months ended June 30, 2010.