Cash, Cash Equivalents and Restricted Cash

3 Months Ended

May 31, 2013

Cash, Cash Equivalents and Restricted Cash

(7)	Cash, Cash Equivalents and Restricted Cash. The Company maintains its cash balances in interest-bearing bank accounts and highly liquid investments with maturities of three months or less. At May 31, 2013, MSC had $27 million of U.S. Treasury bills and $8.1 million of cash.

We have issued two letters of credit in connection with our Midco environmental liability and a workers compensation insurance obligation. The Midco letter of credit is $1.0 million and the insurance letter of credit is $0.1 million. Previously, these letters of credit were secured by a credit line with JPMorgan Chase Bank, N.A. The credit line expired in May 2013, so we established a restricted cash account with the Bank to secure the two letters of credit. At May 31, 2013, we had restricted cash of $1.1 million.

- Definition

The entire disclosure for cash and cash equivalent footnotes, which may include the types of deposits and money market instruments, applicable carrying amounts, restricted amounts and compensating balance arrangements. Cash and equivalents include: (1) currency on hand (2) demand deposits with banks or financial institutions (3) other kinds of accounts that have the general characteristics of demand deposits (4) short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments maturing within three months from the date of acquisition qualify.

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