Fair Value Measurements

6 Months Ended

Feb. 29, 2012

Notes to Financial Statements [Abstract]

Fair Value

Note 11.  Fair Value Measurements

The Company measures its assets and liabilities in accordance with ASC Topic 820, Fair Value Measurements and Disclosures.  ASC Topic 820 defines fair value as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date.  In addition, it establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels:

Level 1 -	Quoted prices in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.
Level 2 -	Observable inputs other than quoted prices in active markets.
Level 3 -	Unobservable inputs for which there is little or no market data available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

Assets measured at fair value on a recurring basis were as follows (In millions):

	February 29, 2012		Level 1		Level 2		Level 3
Assets:
Money market funds	$	764	$	764	$	-	$	-
Interest rate swaps		55		-		55		-
	August 31, 2011		Level 1		Level 2		Level 3
Assets:
Money market funds	$	1,239	$	1,239	$	-	$	-
Interest rate swaps		63		-		63		-
	February 28, 2011		Level 1		Level 2		Level 3
Assets:
Money market funds	$	1,138	$	1,138	$	-	$	-
Interest rate swaps		38		-		38		-

Interest rate swaps are valued using six-month LIBOR in arrears rates.  See Note 10 for additional disclosure regarding financial instruments.