Other Financial Instruments and Fair Value Measurements

12 Months Ended

Apr. 30, 2011

Other Financial Instruments and Fair Value Measurements [Abstract]

Other Financial Instruments and Fair Value Measurements

NOTE N: OTHER FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

Financial instruments, other than derivatives, that potentially subject the Company to significant concentrations of credit risk consist principally of cash investments and trade receivables. With respect to trade receivables, the Company believes there is no concentration of risk with any single customer whose failure or nonperformance would materially affect the Company’s results other than as discussed in Major Customer of Note A: Accounting Policies. The Company does not require collateral from its customers. The fair value of the Company’s financial instruments, other than its long-term debt, approximates their carrying amounts.

The following table provides information on the carrying amount and fair value of the Company’s financial instruments.

	April 30, 2011				April 30, 2010
	Carrying				Carrying
	Amount		Fair Value		Amount		Fair Value
Marketable securities	$	18,600	$	18,600	$	—	$	—
Other investments		41,560		41,560		34,895		34,895
Derivative financial instruments, net		9,015		9,015		2,850		2,850
Long-term debt		1,304,039		1,648,614		910,000		1,172,467

Fair value is defined as 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. Valuation techniques are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect the Company’s market assumptions.

The following table summarizes the fair values and the levels within the fair value hierarchy in which the fair value measurements fall for the Company’s financial assets (liabilities).

	Quoted Prices in			Significant		Significant
	Active Markets			Observable		Unobservable
	for Identical			Inputs		Inputs		Fair Value at			Fair Value at
	Assets (Level 1)			(Level 2)		(Level 3)		April 30, 2011			April 30, 2010
Marketable securities: (A)
Mortgage-backed securities	$	—		$	18,600	$	—	$	18,600		$	—
Other investments: (B)
Equity mutual funds		14,011			—		—		14,011			11,626
Municipal obligations		—			20,042		—		20,042			16,753
Other investments		464			7,043		—		7,507			6,516
Derivatives: (C)
Commodity contracts, net		7,863			—		—		7,863			3,680
Foreign currency exchange contracts, net		(2,887	)		—		—		(2,887	)		(830	)
Interest rate contract, net		—			4,039		—		4,039			—
Total financial assets measured at fair value	$	19,451		$	49,724	$	—	$	69,175		$	37,745

(A)	The Company’s marketable securities, consisting entirely of mortgage-backed securities, are broker-priced and valued by a third party using an evaluated pricing methodology. An evaluated pricing methodology is a valuation technique which uses inputs that are derived principally from or corroborated by observable market data. For additional information, see Marketable Securities and Other Investments of Note A: Accounting Policies.
(B)	The Company’s other investments consist of funds maintained for the payment of benefits associated with nonqualified retirement plans. The funds include equity securities listed in active markets and municipal bonds valued by a third party using an evaluated pricing methodology. For additional information, see Marketable Securities and Other Investments of Note A: Accounting Policies.
(C)	The Company’s commodity contract and foreign currency exchange contract derivatives are valued using quoted market prices. The Company’s interest rate contract derivative is valued using the income approach, observable Level 2 market expectations at the measurement date, and standard valuation techniques to convert future amounts to a single discounted present value. Level 2 inputs for the interest rate contract are limited to quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for the asset or liability. For additional information, see Note M: Derivative Financial Instruments.

The following tables present the Company’s nonfinancial assets adjusted to fair value during the years ended April 30, 2011 and 2010, respectively.

	Carrying								Carrying
	Amount at		Fair Value			Other			Amount at
	May 1, 2010		Adjustment			Adjustments			April 30, 2011
Indefinite-lived trademarks (D)	$	11,896	$	(4,065	)	$	510		$	8,341
Finite-lived customer relationship (D)		18,964		(13,534	)		(222	)		5,208
Total nonfinancial assets adjusted to fair value	$	30,860	$	(17,599	)	$	288		$	13,549

	Carrying								Carrying
	Amount at		Fair Value			Other			Amount at
	May 1, 2009		Adjustment			Adjustments			April 30, 2010
Indefinite-lived trademarks (D)	$	21,370	$	(9,133	)	$	2,315		$	14,552
Finite-lived trademarks (D)		3,012		(2,525	)		(487	)		—
Total nonfinancial assets adjusted to fair value	$	24,382	$	(11,658	)	$	1,828		$	14,552

(D) The Company utilized Level 3 inputs to estimate the fair value of the nonfinancial assets. For additional information, see Note G: Goodwill and Other Intangible Assets.

During 2011 and 2010, the Company recognized fair value adjustments related to the impairment of certain indefinite-lived and finite-lived intangible assets. Other adjustments related to foreign currency exchange and amortization were recognized during the years ended April 30, 2011 and 2010.