Fair Value Measurements

9 Months Ended

Apr. 30, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

NOTE I — Fair Value Measurements

In accordance with fair value accounting guidance, the Company’s assets and liabilities measured at fair market value are classified in one of the following categories:

Level 1 — Assets or liabilities for which fair value is based on quoted market prices in active markets for identical instruments as of the reporting date.

Level 2 — Assets or liabilities for which fair value is based on valuation models for which pricing inputs were either directly or indirectly observable.

Level 3 — Assets or liabilities for which fair value is based on valuation models with significant unobservable pricing inputs and which result in the use of management estimates.

The following tables set forth by level within the fair value hierarchy, the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis at April 30, 2012, and July 31, 2011, according to the valuation techniques the Company used to determine their fair values:

	Fair Value Measurements Using Inputs Considered As
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Values		Balance Sheet Classifications
April 30, 2012:
Trading Securities	$	12,759	$	—	$	—	$	12,759	Other assets
Foreign exchange contracts — cash flow hedges		—		181		—		181	Prepaid expenses and other current assets
Foreign exchange contracts — non-designated		—		23		—		23	Prepaid expenses and other current assets
Foreign exchange contracts — net investment hedges		—		—		—		—	Prepaid expenses and other current assets
Total Assets	$	12,759	$	204	$	—	$	12,963
Foreign exchange contracts — cash flow hedges	$	—	$	144	$	—	$	144	Other current liabilities
Foreign exchange contracts — net investment hedges		—		23		—		23	Other current liabilities
Foreign exchange contracts — non-designated		—		—		—		—	Other current liabilities
Foreign currency denominated debt — net investment hedge		—		99,398		—		99,398	Long term obligations, less current maturities
Total Liabilities	$	—	$	99,565	$	—	$	99,565
July 31, 2011:
Trading Securities	$	10,897	$	—	$	—	$	10,897	Other assets
Foreign exchange contracts — cash flow hedges		—		16		—		16	Prepaid expenses and other current assets
Foreign exchange contracts — non-designated		—		3		—		3	Prepaid expenses and other current assets
Total Assets	$	10,897	$	19	$	—	$	10,916
Foreign exchange contracts — cash flow hedges	$	—	$	830	$	—	$	830	Other current liabilities
Foreign exchange contracts — net investment hedges		—		5,295		—		5,295	Other current liabilities
Foreign exchange contracts — non-designated		—		2		—		2	Other current liabilities
Foreign currency denominated debt — net investment hedge		—		107,985		—		107,985	Long term obligations less current maturities
Total Liabilities	$	—	$	114,112	$	—	$	114,112

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Trading Securities: The Company’s deferred compensation investments consist of investments in mutual funds. These investments were classified as Level 1 as the shares of these investments trade with sufficient frequency and volume to enable the Company to obtain pricing information on an ongoing basis.

Foreign currency exchange contracts: The Company’s foreign currency exchange contracts were classified as Level 2, as the fair value was based on the present value of the future cash flows using external models that use observable inputs, such as interest rates, yield curves and foreign currency exchange rates. See Note K, “Derivatives and Hedging Activities” for additional information.

Foreign currency denominated debt — net investment hedge: The Company’s foreign currency denominated debt designated as a net investment hedge was classified as Level 2, as the fair value was based on the present value of the future cash flows using external models that use observable inputs, such as interest rates, yield curves and foreign currency exchange rates. See Note K, “Derivatives and Hedging Activities” for additional information.

There were no transfers of assets or liabilities between the fair value hierarchy levels, outlined above, during the nine months ended April 30, 2012.

The Company’s financial instruments, other than those presented in the disclosures above, include cash, accounts receivable, accounts payable, accrued liabilities and short-term and long-term debt. The fair values of cash, accounts receivable, accounts payable, and accrued liabilities approximated carrying values because of the short-term nature of these instruments.

The estimated fair value of the Company’s long-term obligations including current maturities, based on the quoted market prices for similar issues and on the current rates offered for debt of similar maturities, was $363,616 and $416,694 at April 30, 2012 and July 31, 2011, respectively, as compared to the carrying value of $342,076 and $393,178 at April 30, 2012 and July 31, 2011, respectively.

During the nine months ended April 30, 2012, goodwill with a carrying amount of $163,702 in the former North/South Asia reporting unit was written down to its estimated implied fair value of $48,014, resulting in a non-cash impairment charge of $115,688. The implied fair value of goodwill of $48,014 represents a Level 3 asset measured at fair value on a nonrecurring basis subsequent to its original recognition. Refer to Note B, “Goodwill and Intangible Assets” for further information regarding the valuation inputs.

During the nine months ended April 30, 2011, the Company had no significant measurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition other than for the acquisition of ID Warehouse, and the divestiture of the Teklynx business. Refer to Note L, “Acquisitions and Divestitures” for further information.