Fair Value Of Financial Instruments

3 Months Ended

Nov. 30, 2012

Fair Values Of Financial Instruments [Abstract]

Fair Values Of Financial Instruments

7. Fair Value of Financial Instruments

     The fair value of financial instruments is the amount at which the instrument could be exchanged in a current transaction between willing parties. The Company has no financial liabilities that are required to be measured at fair value on a recurring basis.

     The Company categorizes its assets and liabilities recorded at fair value based upon the following fair value hierarchy established by the Financial Accounting Standards Board:

• Level 1 valuations use quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. An active market is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
• Level 2 valuations use inputs other than actively quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: (a) quoted prices for similar assets or liabilities in active markets, (b) quoted prices for identical or similar assets or liabilities in markets that are not active, (c) inputs other than quoted prices that are observable for the asset or liability such as interest rates and yield curves observable at commonly quoted intervals and (d) inputs that are derived principally from or corroborated by observable market data by correlation or other means.
• Level 3 valuations use unobservable inputs for the asset or liability. Unobservable inputs are used to the extent observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

     The table below sets forth our fair value hierarchy for financial assets measured at fair value on a recurring basis as of November 30, 2012 and August 31, 2012 (in thousands):

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
November 30, 2012
Assets:
Cash equivalents	$	13,180	$	—	$	—	$	13,180
Restricted cash (current)		8,092		—		—		8,092
Restricted cash (noncurrent)		7,855		—		—		7,855
Total	$	29,127	$	—	$	—	$	29,127
August 31, 2012
Assets:
Cash equivalents	$	7,784	$	—	$	—	$	7,784
Restricted cash (current)		10,200		—		—		10,200
Restricted cash (noncurrent)		7,903		—		—		7,903
Total	$	25,887	$	—	$	—	$	25,887

     At November 30, 2012, the fair value of the Company's Series 2011-1 Senior Secured Fixed Rate Notes, Class A-2 (the "2011 Fixed Rate Notes") was estimated at $509.3 million versus a carrying value of $478.2 million, including accrued interest. At August 31, 2012, the fair value of the 2011 Fixed Rate Notes was estimated at $510.8 million versus a carrying value of $482.0 million, including accrued interest. The fair value of the 2011 Fixed Rate Notes is estimated using Level 2 inputs from market information available for public debt transactions for companies with ratings that are similar to the Company's ratings and from information gathered from brokers who trade in the Company's notes.