Fair Value Measures and Disclosures

3 Months Ended

Jun. 30, 2011

Fair Value Measures and Disclosures

Fair Value Disclosures [Text Block]

17.  FAIR VALUE MEASUREMENTS

The Company follows the current accounting guidance for fair value measurements for financial and non-financial assets and liabilities.  The financial assets and liabilities measured at fair value include derivative instruments, securitized beneficial interests and guarantees.  The non-financial assets and liabilities measured at fair value primarily include assessments of investments in subsidiaries, goodwill and other intangible assets and long-lived assets for potential impairment.  The carrying value and estimated fair value of the Company’s long-term debt are shown in the table below.

	September 30, 2011	September 30, 2010	March 31, 2011
Long-term debt
Carrying value	$ 878,835	$ 742,909	$ 885,155
Estimated fair value	767,865	808,662	905,330

          A three-level valuation hierarchy is used to determine fair value as follows:

·Level 1 – Quoted prices for identical assets or liabilities in active markets.

·Level 2 – Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

·Level 3 – Significant inputs to the valuation model are unobservable.

          The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis:

	Derivative financial instruments	Securitized beneficial interests	Total Assets	Derivative financial instruments	Guarantees	Total Liabilities
Level 1	$         -	$           -	$           -	$      -	$          -	$         -
Level 2	367	-	367	655	-	655
Level 3	-	28,426	28,426	-	5,005	5,005
Totals for September 30, 2011	$ 367	$ 28,426	$ 28,793	$ 655	$  5,005	$  5,660
Level 1	$         -	$           -	$           -	$      -	$          -	$         -
Level 2	1,299	-	1,299	-	-	-
Level 3	-	25,528	25,528	-	4,830	4,830
Totals for September 30, 2010	$ 1,299	$ 25,528	$ 26,827	$      -	$  4,830	$ 4,830
Level 1	$         -	$           -	$           -	$      -	$          -	$         -
Level 2	2,543	-	2,543	-	-	-
Level 3	-	15,797	15,797	-	4,575	4,575
Totals for March 31, 2011	$ 2,543	$ 15,797	$ 18,340	$      -	$  4,575	$  4,575

The following tables present the changes in Level 3 instruments measured on a recurring basis:

	Three Months Ended September 30, 2011		Six Months Ended September 30, 2011
	Beneficial Interest in Securitized Receivables	Guarantees	Beneficial Interest in Securitized Receivables	Guarantees
Beginning Balance	$ 13,972	$ 2,950	$ 15,797	$ 4,575
Issuance of guarantees/sales of receivables	66,867	3,306	101,960	4,599
Settlements	(50,799)	(1,420)	(87,073)	(3,818)
Changes in anticipated loss rate	-	169	-	(351)
Losses recognized in earnings	(1,614)	-	(2,258)	-
Ending Balance September 30, 2011	$ 28,426	$ 5,005	$ 28,426	$ 5,005

	Three Months Ended September 30, 2010		Six Months Ended September 30, 2010
	Beneficial Interest in Securitized Receivables	Guarantees	Beneficial Interest in Securitized Receivables	Guarantees
Beginning Balance	$ 13,188	$ 8,933	$ 25,125	$ 13,478
Issuance of guarantees/sales of receivables	83,650	2,924	91,286	5,279
Settlements	(70,593)	(7,027)	(89,936)	(13,927)
Changes in anticipated loss rate	-	-	-	-
Losses recognized in earnings	(717)	-	(947)	-
Ending Balance September 30, 2010	$ 25,528	$ 4,830	$ 25,528	$  4,830

          The amount of unrealized losses relating to assets still held September 30, 2011 and  2010, and  March 31, 2011 was $861, $363 and $288, respectively, all relating to securitized beneficial interests.  Gains and losses included in earnings are reported in Other Income in the Condensed Consolidated Statements of Operations. 

Valuation methodologies

The fair value of derivative financial instruments is based on third-party market maker valuation models including amounts related to the Company’s own credit risk and counterparty credit risk.  The fair value of securitized beneficial interests is based upon a valuation model that calculates the present value of future expected cash flows using key assumptions based on the Company’s historical experience, market trends and anticipated performance relative to the particular assets securitized.  The fair value of guarantees is based upon the premium the Company would require to issue the same guarantee in a stand-alone arm’s-length transaction with an unrelated party based upon internally developed models. Internally developed models utilize historical loss data for similar guarantees to develop an estimate of future losses under the guarantees outstanding at the measurement date.