Fair Value Measurement

12 Months Ended

Aug. 31, 2012

FAIR VALUE MEASUREMENT [Abstract]

Fair Value Disclosures [Text Block]

FAIR VALUE MEASUREMENT

The following table presents information about the Company’s assets and liabilities measured at fair value as of August 31, 2012 and 2011: 

	2012								2011
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
	(In thousands)
Assets recorded at fair value:
Foreign exchange forward contracts	$	92	$	—	$	92	$	—	$	82	$	—	$	82	$	—
Liabilities recorded at fair value:
Foreign exchange forward contracts	$	69	$	—	$	69	$	—	$	50	$	—	$	50	$	—
Liabilities not recorded at fair value:
Long-term fixed-rate debt	$	65,210	$	—	$	65,210	$	—	$	76,093	$	—	$	76,093	$	—

Cash and cash equivalents are recorded at cost, which approximates fair value. Additionally, the carrying value of the Company's variable-rate debt approximates fair value.

Long-term fixed-rate debt issued in Euros is not recorded at fair value on a recurring basis; however, is presented at fair value for disclosure purposes as shown in the table above. The Level 2 fair value of the Company's long-term fixed-rate debt was estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities. As of August 31, 2012 and 2011, the carrying value of the Company's long-term fixed-rate debt recorded on the consolidated balance sheets was $60.3 million and $72.7 million, respectively.

The Company measures the fair value of its foreign exchange forward contracts using an internal model. The model maximizes the use of Level 2 market observable inputs including interest rate curves, currency forward and spot prices, and credit spreads. The total contract value of foreign exchange forward contracts outstanding was $43.0 million and $18.4 million as of August 31, 2012 and 2011, respectively. The amount of foreign exchange forward contracts outstanding as of the end of the period is indicative of the level of the activity during the period. Any gains or losses associated with these contracts as well as the offsetting gains or losses from the underlying assets or liabilities are included in the foreign currency transaction (gains) losses line in the Company’s consolidated statements of operations. The fair value of the Company’s foreign exchange forward contracts is recognized in other current assets or other accrued liabilities in the consolidated balance sheets based on the net settlement value. The foreign exchange forward contracts are entered into with credit-worthy multinational banks, generally have a term of three months or less, and the Company does not hold or issue foreign exchange forward contracts for trading purposes. There were no foreign exchange forward contracts designated as hedging instruments as of August 31, 2012 and 2011.

The Company has not changed its valuation techniques for measuring the fair value of any financial assets or liabilities during fiscal 2012, and transfers between levels within the fair value hierarchy, if any, are recognized at the end of each quarter. There were no transfers between levels during the years presented.

Additionally, the Company remeasures assets to fair value as a result of the occurrence of certain events. During fiscal 2012, the Company remeasured the carrying value of certain facilities, machinery and equipment to fair value in conjunction with restructuring initiatives. For further discussion on asset impairments, refer to Note 16.

There were no additional significant assets or liabilities that were remeasured at fair value on a non-recurring basis during the periods presented.