Fair Value

12 Months Ended

Jul. 31, 2011

Fair Value

Fair Value

NOTE F Fair Value

          The following summarizes the Company's fair value of outstanding derivatives at July 31, 2011, and 2010, on the Consolidated Balance Sheets (thousands of dollars):

	At July 31,
	2011		2010
Asset derivatives recorded under the caption Prepaids and other current assets Foreign exchange contracts	$	945	$	807
Asset derivatives recorded under the caption Other assets Interest rate swap asset	$	—	$	4,590
Liability derivatives recorded under the caption Other current liabilities Foreign exchange contracts	$	1,470	$	2,127

          The Company's derivative financial instruments present certain market and counterparty risks, however, concentration of counterparty risk is mitigated as the Company deals with a variety of major banks worldwide. In addition, only conventional derivative financial instruments are utilized. The Company would not be materially impacted if any of the counterparties to the derivative financial instruments outstanding at July 31, 2011, failed to perform according to the terms of its agreement. At this time, the Company does not require collateral or any other form of securitization to be furnished by the counterparties to its derivative instruments.

          The fair values of the Company's financial assets and financial liabilities listed below reflect the amounts that would be received to sell the assets or paid to transfer the liabilities in an orderly transaction between market participants at the measurement date (exit price). The fair values are based on inputs other than quoted prices that are observable for the asset or liability. These inputs include foreign currency exchange rates and interest rates. The financial assets and financial liabilities are primarily valued using standard calculations and models that use as their basis readily observable market parameters. Industry standard data providers are the primary source for forward and spot rate information for both interest rates and currency rates.

	Significant Other Observable Inputs (Level 2)*
	At July 31,
	2011			2010
Forward exchange contracts – net liability position	$	(525	)	$	(1,320	)
Interest rate swaps – net asset position		—			4,590

          *Inputs to the valuation methodology of level 2 assets include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means.