Fair Value Measurements

9 Months Ended

May 31, 2012

Notes to Condensed Consolidated Financial Statements [Abstract]

Fair Value Measurements

Fair Value Measurements

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

			Fair Value Measurements at Reporting Date Using
($ in thousands)	May 31, 2012		Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents (including restricted cash equivalents):
Money market funds	$	645,812	$	645,812	$	—	$	—
Marketable securities:
Auction-rate securities	5,946		—		—		5,946
Total assets at fair value on a recurring basis	$	651,758	$	645,812	$	—	$	5,946
Liabilities:
Other liabilities:
Interest rate swap	$	1,829	$	—	$	1,829	$	—
Total liabilities at fair value on a recurring basis	$	1,829	$	—	$	1,829	$	—

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

			Fair Value Measurements at Reporting Date Using
($ in thousands)	August 31, 2011		Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents (including restricted cash equivalents):
Money market funds	$	1,854,927	$	1,854,927	$	—	$	—
Marketable securities:
Auction-rate securities	5,946		—		—		5,946
Total assets at fair value on a recurring basis	$	1,860,873	$	1,854,927	$	—	$	5,946
Liabilities:
Other liabilities:
Interest rate swap	$	3,363	$	—	$	3,363	$	—
Total liabilities at fair value on a recurring basis	$	3,363	$	—	$	3,363	$	—

We measure the above items on a recurring basis at fair value as follows:

• Money market funds — Classified within Level 1 and were valued primarily using real-time quotes for transactions in active exchange markets involving identical assets. As of May 31, 2012 and August 31, 2011, our remaining cash and cash equivalents not disclosed in the above tables approximate fair value because of the short-term nature of the financial instruments.

• Auction-rate securities — Classified within Level 3 due to the illiquidity of the market and were valued using a discounted cash flow model encompassing significant unobservable inputs such as estimated interest rates, credit spreads, timing and amount of cash flows, credit quality of the underlying securities and illiquidity considerations.

• Interest rate swap — We have an interest rate swap with a notional amount of $36.0 million as of May 31, 2012 used to minimize the interest rate exposure on a portion of BPP’s variable rate debt. The interest rate swap is used to fix the variable interest rate on the associated debt. The swap is classified within Level 2 and is valued using readily available pricing sources which utilize market observable inputs including the current variable interest rate for similar types of instruments.

At May 31, 2012, the carrying value of our debt, excluding capital leases, was $70.1 million. The majority of our debt is variable interest rate debt and the carrying amount approximates fair value.

We did not change our valuation techniques associated with recurring fair value measurements from prior periods. Additionally, there were no changes in the assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)  during the nine months ended May 31, 2012.

Liabilities measured at fair value on a nonrecurring basis during the first nine months of fiscal year 2012 consist of the following:

			Fair Value Measurements at Measurement Date Using
($ in thousands)	Fair Value at Measurement Dates		Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Losses for Nine Months Ended May 31, 2012
Liabilities:
Other liabilities:
Restructuring obligations	$	22,692	$	—	$	—	$	22,692	$	(22,692	)
Total liabilities at fair value on a nonrecurring basis	$	22,692	$	—	$	—	$	22,692	$	(22,692	)

During the first nine months of fiscal year 2012, we recorded aggregate initial restructuring obligations at fair value of $22.7 million associated with abandoning certain leased facilities as part of a real estate rationalization plan. We recorded the restructuring obligation liabilities on the dates we ceased use of the respective facilities, and we measured the liabilities at fair value using Level 3 inputs included in the valuation method. Refer to Note 4, Restructuring and Other Charges.