Note 2: Fair Value Measurements
We measure certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents, supplemental executive retirement plan assets and liabilities, and foreign currency derivatives. The fair value of financial assets and liabilities can be determined based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, as follows:
Level 1 – Observable inputs, such as quoted prices in active markets for identical assets or liabilities;
Level 2 – Inputs, other than the quoted prices in active markets, that are observable either directly or through corroboration with observable market data; and
Level 3 – Unobservable inputs, for which there is little or no market data for the assets or liabilities, such as internally-developed valuation models.
Our assets and liabilities measured at fair value on a recurring basis were determined as follows:
| At May 31, 2013 | ||||||||||||||||
| Quoted Prices in Active Markets for Identical Instruments (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Total Balance |
|||||||||||||
|
Assets |
||||||||||||||||
|
Money market funds |
$ | 14 | $ | — | $ | — | $ | 14 | ||||||||
|
Supplemental executive retirement plan |
||||||||||||||||
|
Money market fund |
113 | — | — | 113 | ||||||||||||
|
Mutual funds |
2,834 | — | — | 2,834 | ||||||||||||
|
Foreign exchange forward contracts |
— | 114 | — | 114 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Total assets measured at fair value |
$ | 2,961 | $ | 114 | $ | — | $ | 3,075 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| At May 31, 2012 | ||||||||||||||||
| Quoted Prices in Active Markets for Identical Instruments (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Total Balance |
|||||||||||||
|
Assets |
||||||||||||||||
|
Money market funds |
$ | 2,507 | $ | — | $ | — | $ | 2,507 | ||||||||
|
Supplemental executive retirement plan |
||||||||||||||||
|
Money market fund |
80 | — | — | 80 | ||||||||||||
|
Mutual funds |
2,290 | — | — | 2,290 | ||||||||||||
|
Foreign exchange forward contracts |
— | 179 | — | 179 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Total assets measured at fair value |
$ | 4,877 | $ | 179 | $ | — | $ | 5,056 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
The fair value measures for our money market funds and supplemental executive retirement plan asset (see Note 9 for further discussion our our supplemental executive retirement plan asset) were derived from quoted market prices in active markets and are included in Level 1 inputs. Foreign currency forward contracts were valued based on observable market spot and forward rates as of our reporting date and are included in Level 2 inputs.