Fair Value Measures and Disclosures

3 Months Ended

Dec. 31, 2011

Fair Value Measures and Disclosures

Fair Value Disclosures [Text Block]

17.  FAIR VALUE MEASUREMENTS

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.

	December 31, 2011	December 31, 2010	March 31, 2011
Long-term debt
Carrying value	$ 874,603	$ 763,052	$ 885,155
Estimated fair value	785,090	796,213	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	51	-	51	80	-	80
Level 3	-	34,405	34,405	-	4,342	4,342
Totals for December 31, 2011	$      51	$ 34,405	$    34,456	$      80	$       4,342	$   4,422
Level 1	$         -	$           -	$            -	$        -	$               -	$          -
Level 2	218	-	218	-	-	-
Level 3	-	23,350	23,350	-	4,866	4,866
Totals for December 31, 2010	$    218	$ 23,350	$   23,568	$        -	$        4,866	$   4,866
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 December 31, 2011		Nine Months Ended December 31, 2011
	Beneficial Interest in Securitized Receivables	Guarantees	Beneficial Interest in Securitized Receivables	Guarantees
Beginning Balance	$ 28,426	$ 5,005	$ 15,797	$ 4,575
Issuance of guarantees/sales of receivables	39,920	326	141,880	4,925
Settlements	(32,974)	(989)	(120,047)	(4,807)
Changes in anticipated loss rate	-	-	-	(351)
Losses recognized in earnings	(967)	-	(3,225)	-
Ending Balance December 31, 2011	$ 34,405	$ 4,342	$ 34,405	$ 4,342

	Three Months Ended December 31, 2010		Nine Months Ended December 31, 2010
	Beneficial Interest in Securitized Receivables	Guarantees	Beneficial Interest in Securitized Receivables	Guarantees
Beginning Balance	$ 25,528	$ 4,830	$ 25,125	$ 13,478
Issuance of guarantees/sales of receivables	51,892	512	143,178	5,791
Settlements	(53,355)	(476)	(143,291)	(14,403)
Changes in anticipated loss rate	-	-	-	-
Losses recognized in earnings	(715)	-	(1,662)	-
Ending Balance December 31, 2010	$ 23,350	$ 4,866	$ 23,350	$   4,866

          The amount of unrealized losses relating to assets still held December 31, 2011 and  2010, and  March 31, 2011 was $493, $366 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.

Fair Value of Nonfinancial Assets and Nonfinancial Liabilities

The Company measures certain nonfinancial assets and nonfinancial liabilities at fair value on a nonrecurring basis.  These assets and liabilities include assets acquired and liabilities assumed in an acquisition or in a nonmonetary exchange and property, plant and equipment and intangible assets that are written down to fair value when they are held for sale or determined to be impaired.  During the quarter ended December 31, 2011, the Company recorded property that was received in a nonmonetary exchange at fair value of $26,250.  The fair value was determined utilizing independent third party real estate appraisals.