Other Financial Instruments and Fair Value Measurements

6 Months Ended

Oct. 31, 2011

Other Financial Instruments and Fair Value Measurements [Abstract]

Other Financial Instruments and Fair Value Measurements

Note N – Other Financial Instruments and Fair Value Measurements

Financial instruments, other than derivatives, that potentially subject the Company to significant concentrations of credit risk consist principally of cash investments and trade receivables. Under the Company’s investment policy, it may invest in securities deemed to be investment grade at the time of purchase. The Company determines the appropriate categorization of debt securities at the time of purchase and reevaluates such designation at each balance sheet date.

The fair value of the Company’s financial instruments, other than its long-term debt, approximates their carrying amounts. The following table provides information on the carrying amount and fair value of the Company’s financial instruments.

	October 31, 2011						April 30, 2011
	Carrying Amount			Fair Value			Carrying Amount		Fair Value
Marketable securities	$	0		$	0		$	18,600	$	18,600
Other investments		40,136			40,136			41,560		41,560
Derivatives financial instruments, net		(2,564	)		(2,564	)		9,015		9,015
Long-term debt		2,071,852			2,550,850			1,304,039		1,648,614

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect the Company’s market assumptions.

The following table summarizes the fair values and the levels within the fair value hierarchy in which the fair value measurements fall for the Company’s financial assets (liabilities) measured at fair value on a recurring basis.

	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at October  31, 2011			Fair Value at April 30, 2011
Marketable securities (A)	$	0		$	0	$	0	$	0		$	18,600
Other investments: (B)
Equity mutual funds		11,876			0		0		11,876			14,011
Municipal obligations		0			20,681		0		20,681			20,042
Other investments		536			7,043		0		7,579			7,507
Derivatives: (C)
Commodity contracts, net		(2,537	)		0		0		(2,537	)		7,863
Foreign currency exchange contracts, net		(27	)		0		0		(27	)		(2,887	)
Interest rate contract, net		0			0		0		0			4,039
Total financial assets measured at fair value	$	9,848		$	27,724	$	0	$	37,572		$	69,175

^(A)  The Company’s marketable securities consisted entirely of commercial paper at April 30, 2011, and were broker-priced and valued by a third party using an evaluated pricing methodology. An evaluated pricing methodology is a valuation technique which uses inputs that are derived principally from or corroborated by observable market data. All securities had matured or were sold prior to October 31, 2011.

^(B)  The Company’s other investments consist of funds maintained for the payment of benefits associated with nonqualified retirement plans. The funds include equity securities listed in active markets and municipal obligations valued by a third party using an evaluated pricing methodology. As of October 31, 2011, the Company’s municipal obligations are scheduled to mature as follows: $647 in 2012, $3,371 in 2013, $742 in 2014, $2,766 in 2015, and $13,155 in 2016 and beyond.

^(C)  The Company’s commodity contract and foreign currency exchange contract derivatives are valued using quoted market prices. The Company’s interest rate contract derivative was valued using the income approach, observable Level 2 market expectations at the measurement date, and standard valuation techniques to convert future amounts to a single discounted present value. Level 2 inputs for the interest rate contract were limited to quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for the asset or liability. For additional information, see Note M – Derivative Financial Instruments.