Fair Value Measurements

3 Months Ended

Nov. 30, 2011

(9) Fair Value Measurements

The Company applies the provisions of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. As defined in ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

ASC 820 establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Inputs refers broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. The categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:

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Level 1 - inputs to the valuation techniques are quoted prices in active markets for identical assets or liabilities

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Level 2 - inputs to the valuation techniques are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly

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Level 3 - inputs to the valuation techniques are unobservable for the assets or liabilities

The following table presents the Company's financial assets and liabilities measured at fair value based upon the level within the fair value hierarchy in which the fair value measurements fall, as of November 30, 2011:

		September 30,		September 30,			September 30,		September 30,
$ in thousands	Level 1		Level 2			Level 3		Total
Cash and cash equivalents	$	108,731	$	—		$	—	$	108,731
Derivative assets		—		282			—		282
Derivative liabilities		—		(311	)		—		(311	)

		September 30,		September 30,			September 30,		September 30,
$ in thousands	Level 1		Level 2			Level 3		Total
Cash and cash equivalents	$	80,535	$	—		$	—	$	80,535
Derivative assets		—		7			—		7
Derivative liabilities		—		(803	)		—		(803	)

		September 30,		September 30,			September 30,		September 30,
$ in thousands	Level 1		Level 2			Level 3		Total
Cash and cash equivalents	$	108,167	$	—		$	—	$	108,167
Derivative assets		—		—			—		—
Derivative liabilities		—		(634	)		—		(634	)

The carrying amount of long-term debt (including current portion) was $7.5 million, $11.8 million and $8.6 million as of November 30, 2011 and 2010 and August 31, 2011, respectively. The fair value of this debt was estimated at $7.4 million, $11.5 million, and $8.5 million as of November 30, 2011 and 2010 and August 31, 2011, respectively. Fair value of long-term debt (including current portion) is estimated by discounting the future estimated cash flows of each instrument at current market interest rates for similar debt instruments of comparable maturities and credit quality

The Company also measures the fair value of certain assets on a non-recurring basis, generally quarterly, annually, or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include fixed assets, goodwill, and other intangible assets. There were no required fair value adjustments for assets and liabilities measured at fair value on a non-recurring basis for the three months ended November 30, 2011 or 2010.

- Definition

This item represents the complete disclosure regarding the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the Company is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risk is are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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