Fair Value Measurements

3 Months Ended

Nov. 30, 2012

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Assets and liabilities measured at fair value on a recurring basis consist of the following as of November 30, 2012:

			Fair Value Measurements at Reporting Date Using
	November 30, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
($ in thousands)
Assets:
Cash equivalents (including restricted cash equivalents):
Money market funds	$	900,056	$	900,056	$	—	$	—
Other assets:
Auction-rate securities	5,946		—		—		5,946
Total assets at fair value on a recurring basis	$	906,002	$	900,056	$	—	$	5,946
Liabilities:
Other long-term liabilities:
Contingent payment	$	6,000	$	—	$	—	$	6,000
Total liabilities at fair value on a recurring basis	$	6,000	$	—	$	—	$	6,000

Assets measured at fair value on a recurring basis consist of the following as of August 31, 2012:

			Fair Value Measurements at Reporting Date Using
	August 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
($ in thousands)
Cash equivalents (including restricted cash equivalents):
Money market funds	$	629,166	$	629,166	$	—	$	—
Other assets:
Auction-rate securities	5,946		—		—		5,946
Total assets at fair value on a recurring basis	$	635,112	$	629,166	$	—	$	5,946

We measure the above items on a recurring basis at fair value as follows:

• Money market funds – Classified within Level 1 and valued primarily using real-time quotes for transactions in active exchange markets involving identical assets. As of November 30, 2012 and August 31, 2012, our remaining cash and cash equivalents not disclosed in the above tables approximate fair value because of the short-term nature of the financial instruments.

• Auction-rate securities – Classified within Level 3 due to the illiquidity of the market and valued using a discounted cash flow model encompassing significant unobservable inputs such as estimated interest rates, credit spreads, timing and amount of cash flows, credit quality of the underlying securities and illiquidity considerations. We include auction-rate securities in other assets on our Condensed Consolidated Balance Sheets for all periods presented.

• Contingent payment – As a result of our purchase of the noncontrolling interest in Apollo Global, we have a contingent payment based on a portion of Apollo Global’s operating results through the fiscal years ending August 31, 2017. This contingent payment is classified within Level 3 and valued using a discounted cash flow valuation method encompassing significant unobservable inputs. The inputs include estimated operating results for the applicable performance period, probability weightings assigned to operating results scenarios and the discount rate applied.

We did not change our valuation techniques associated with recurring fair value measurements from prior periods. Additionally, the only significant change in the assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended November 30, 2012 was the new contingent payment noted above.

Liabilities measured at fair value on a nonrecurring basis during the first quarter of fiscal year 2013 consist of the following:

			Fair Value Measurements at Measurement Date Using
($ in thousands)	Fair Value at Measurement Date		Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Losses for Three Months Ended November 30, 2012
Other liabilities:
Initial lease obligation included in restructuring	$	422	$	—	$	—	$	422	$	422
Total liabilities at fair value on a nonrecurring basis	$	422	$	—	$	—	$	422	$	422

During the first quarter of fiscal year 2013, we recorded an initial lease obligation at fair value of $0.4 million associated with abandoning a leased facility as part of our restructuring activities. We recorded the lease obligation liability on the date we ceased use of the facility, and we measured the liability at fair value using Level 3 inputs included in the valuation method. Refer to Note 3, Restructuring and Other Charges.