Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurement

v2.4.0.8
Fair Value Measurement
 3 Months Ended
Nov. 30, 2013
Fair Value Disclosures [Abstract]  
Fair Value Measurement
Fair Value Measurement
The Company assesses the inputs used to measure the fair value of financial assets and liabilities using a three-tier hierarchy. Level 1 inputs include quoted prices for identical instruments and are the most observable. Level 2 inputs include quoted prices for similar assets and observable inputs such as interest rates, foreign currency exchange rates, commodity rates and yield curves. Level 3 inputs are not observable in the market and include management’s own judgments about the assumptions market participants would use in pricing the asset or liability. The following financial assets (liabilities), measured at fair value, are included in the condensed consolidated balance sheet (in thousands):
 
 
November 30,
2013
 
August 31,
2013
Level 1 Valuation:
 
 
 
 
Cash equivalents
 
$
123

 
$
1,092

Investments
 
1,962

 
1,793

Level 2 Valuation:
 

 

Foreign currency derivatives
 
$
(626
)
 
$
143


The fair value of the Company’s cash, accounts receivable, accounts payable, short-term borrowings and its variable rate long-term debt approximated book value at both November 30, 2013 and August 31, 2013 due to their short-term nature and the fact that the interest rates approximated market rates. The fair value of the Company’s outstanding $300 million of 5.625% Senior Notes was $303.0 million and $300.8 million November 30, 2013 and August 31, 2013, respectively. The fair value of the Senior Notes was based on quoted inactive market prices and are therefore classified as Level 2 within the valuation hierarchy.