Fair Value Of Financial Instruments

3 Months Ended

Nov. 30, 2011

Fair Value Of Financial Instruments [Abstract]

Fair Value Of Financial Instruments

7. Fair Value of Financial Instruments

     The fair value of financial instruments is the amount at which the instrument could be exchanged in a current transaction between willing parties. The Company has no financial liabilities that are required to be measured at fair value on a recurring basis.

     The Company categorizes its assets and liabilities recorded at fair value based upon the following fair value hierarchy established by the Financial Accounting Standards Board:

• Level 1 valuations use quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. An active market is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
• Level 2 valuations use inputs other than actively quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: (a) quoted prices for similar assets or liabilities in active markets, (b) quoted prices for identical or similar assets or liabilities in markets that are not active, (c) inputs other than quoted prices that are observable for the asset or liability such as interest rates and yield curves observable at commonly quoted intervals and (d) inputs that are derived principally from or corroborated by observable market data by correlation or other means.
• Level 3 valuations use unobservable inputs for the asset or liability. Unobservable inputs are used to the extent observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

     The table below sets forth our fair value hierarchy for financial assets measured at fair value on a recurring basis as of November 30, 2011 (in thousands):

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
							Total
Assets:
Cash equivalents	$	7,103	$	—	$	—	$	7,103
Restricted cash (current)		10,566		—		—		10,566
Restricted cash (noncurrent)		8,059		—		—		8,059
Total	$	25,728	$	—	$	—	$	25,728

     The table below sets forth our fair value hierarchy for financial assets measured at fair value on a recurring basis as of August 31, 2011 (in thousands):

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
							Total
Assets:
Cash equivalents	$	11,338	$	—	$	—	$	11,338
Restricted cash (current)		12,850		—		—		12,850
Restricted cash (noncurrent)		8,108		—		—		8,108
Total	$	32,296	$	—	$	—	$	32,296

     At November 30, 2011 and August 31, 2011, the fair value of the Company's Series 2011-1 Senior Secured Fixed Rate Notes, Class A-2 approximated the carrying value, including accrued interest, of $493.2 million and $497.0 million, respectively.