Fair Value Measures

9 Months Ended

May 31, 2013

Fair Value Measures

Note 16 – 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, 2013 are:

(In thousands)	Total		Level 1		Level 2 (1)		Level 3
Assets:
Derivative financial instruments	$	1,242	$	—	$	1,242	$	—
Nonqualified savings plan investments		7,981		7,981		—		—
Cash equivalents		1,004		1,004		—		—
	$	10,227	$	8,985	$	1,242	$	—
Liabilities:
Derivative financial instruments	$	2,495	$	—	$	2,495	$	—

(1) Level 2 assets and liabilities include derivative financial instruments which are valued based on observable inputs. See note 13 Derivative Instruments for further discussion.

Assets or liabilities measured at fair value on a nonrecurring basis as of May 31, 2013 are:

(In thousands)	Total		Level 1		Level 2		Level 3  (2)
Assets:
Goodwill	$	57,416	$	—	$	—	$	57,416

(2) Level 3 assets and liabilities include goodwill which is valued based on unobservable inputs. See note 5 Goodwill for further discussion.

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

(In thousands)	Total		Level 1		Level 2		Level 3
Assets:
Derivative financial instruments	$	2,844	$	—	$	2,844	$	—
Nonqualified savings plan investments		6,667		6,667		—		—
Cash equivalents		1,002		1,002		—		—
	$	10,513	$	7,669	$	2,844	$	—
Liabilities:
Derivative financial instruments	$	3,145	$	—	$	3,145	$	—

Assets or liabilities measured at fair value on a nonrecurring basis as of August 31, 2012 are:

(In thousands)	Total		Level 1		Level 2		Level 3
Assets:
Goodwill	$	137,066	$	—	$	—	$	137,066