Fair Value Measures

9 Months Ended

May 31, 2012

Fair Value Measures

Note 13 – Fair Value Measures

Certain assets and liabilities are reported at fair value on either a recurring or nonrecurring basis. Fair value, for this disclosure, is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:

Level 1	–	observable inputs such as unadjusted quoted prices in active markets for identical instruments;
Level 2	–	inputs, other than the quoted market prices in active markets for similar instruments, which are observable, either directly or indirectly; and
Level 3	–	unobservable inputs for which there is little or no market data available, which require the reporting entity to develop its own assumptions.

Assets and liabilities measured at fair value on a recurring basis as of May 31, 2012 are:

(In thousands)	Total		Level 1		Level 2 (1)		Level 3
Assets:
Derivative financial instruments	$	286	$	—	$	286	$	—
Nonqualified savings plan investments		6,700		6,700		—		—
Cash equivalents		2,001		2,001		—		—
	$	8,987	$	8,701	$	286	$	—
Liabilities:
Derivative financial instruments	$	5,521	$	—	$	5,521	$	—

(1) Level 2 assets include derivative financial instruments which are valued based on significant observable inputs. See note 10 Derivative Instruments for further discussion.

Assets and liabilities measured at fair value on a recurring basis as of August 31, 2011 are:

(In thousands)	Total		Level 1		Level 2		Level 3
Assets:
Derivative financial instruments	$	—	$	—	$	—	$	—
Nonqualified savings plan investments		6,326		6,326		—		—
Cash equivalents		4,561		4,561		—		—
	$	10,887	$	10,887	$	—	$	—
Liabilities:
Derivative financial instruments	$	7,759	$	—	$	7,759	$	—