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Fair Value of Financial Instruments
 12 Months Ended
Apr. 30, 2013
Fair Value of Financial Instruments

13.       FAIR VALUE OF FINANCIAL INSTRUMENTS

We use a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. These tiers include: Level 1, defined as quoted market prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, and Level 3, defined as unobservable inputs that are not corroborated by market data.

We use valuation techniques that maximize the use of market prices and observable inputs and minimize the use of unobservable inputs. In measuring the fair value of our financial assets and liabilities, we rely on market data or assumptions which we believe market participants would use in pricing an asset or a liability.

Our financial instruments include cash and cash equivalents, trade receivables, restricted trust and escrow accounts, interest rate derivatives, trade payables and long-term debt. The carrying values of cash and cash equivalents, trade receivables and trade payables approximate their respective fair values. See Note 10 for disclosure over the fair value of debt.

 

As of April 30, 2013, our financial assets and liabilities that are measured at fair value on a recurring basis include the following:

 

         Fair Value Measurement at April 30, 2013  Using:      
     Quoted Prices in
Active
Markets for
Identical Assets
(Level 1)		     Significant
Other
Observable
Inputs
(Level 2)		     Significant
Unobservable
Inputs
(Level 3)		  

Assets:

       

Restricted assets

      $             545         $             -         $             -    
  

 

 

    

 

 

    

 

 

  

Liabilities:

       

Interest rate derivatives

      $ -         $ 4,229         $ -    
  

 

 

    

 

 

    

 

 

  

As of April 30, 2012, our financial assets and liabilities that are measured at fair value on a recurring basis include the following:

 

         Fair Value Measurement at April 30, 2012  Using:       
     Quoted Prices in
Active
Markets for
Identical Assets
(Level 1)		     Significant
Other
Observable
Inputs
(Level 2)		     Significant
Unobservable
Inputs
(Level 3)		  

Assets:

       

Restricted assets

      $             424         $             -         $             -    
  

 

 

    

 

 

    

 

 

  

Liabilities:

       

Interest rate derivatives

      $ -         $ 2,369         $ -    
  

 

 

    

 

 

    

 

 

  

In fiscal year 2013, our financial assets and liabilities recorded at fair value on a non-recurring basis include our guaranty of GreenFiber’s modified and restated loan and security agreement and our assets related to Bio Fuels, a construction and demolition material processing facility located in Lewiston, Maine, which is classified as held-for-sale as of April 30, 2013. The fair value of our guaranty was determined based on the value of the contribution required to satisfy the guaranty and pay off the term loan in May 2013. The fair value of our Bio Fuels asset group was measured based on the asset group’s highest and best use using an in-exchange valuation premise under the market approach, utilizing the estimated purchase consideration of the asset group and consideration of costs to be incurred to sell.

As of April 30, 2013, our assets and liabilities that are measured at fair value on a non-recurring basis include the following:

 

         Fair Value Measurement at April 30, 2013  Using:       
     Quoted Prices in
Active
Markets for
Identical Assets
(Level 1)		     Significant
Other
Observable
Inputs
(Level 2)		     Significant
Unobservable
Inputs
(Level 3)		  

Assets:

       

Asset group held-for-sale - Bio Fuels

      $             -         $             -         $             61    
  

 

 

    

 

 

    

 

 

  

Liabilities:

       

Guaranty

      $ -         $ -         $ 2,073    
  

 

 

    

 

 

    

 

 

  

In fiscal year 2012, our financial assets and liabilities recorded at fair value on a non-recurring basis include our investment in GreenFiber, our guaranty of GreenFiber’s modified and restated loan and security agreement and our long-lived asset group related to Maine Energy. The fair value of our investment in GreenFiber was based on a third party valuation that calculated the fair value relying on the income approach using discounted cash flows taking into account current expectations for asset utilization, housing starts and the remaining useful life of related assets. The fair value of our guaranty was determined using the cost approach based primarily on an estimated bond rate that would be incurred to collateralize a bond of similar nature to the guaranty. The fair value of our Maine Energy asset group was measured based on the asset group’s highest and best use under the market approach, utilizing the discounted present cash flows associated with the purchase consideration of the facility, adjusted for costs to demolish the facility.

 

As of April 30, 2012, our assets and liabilities that are measured at fair value on a non-recurring basis include the following:

 

     Fair Value Measurement at April 30, 2012 Using:  
     Quoted Prices  in
Active Markets for
Identical Assets
(Level 1)		     Significant  Other
Observable Inputs
(Level 2)		     Significant
Unobservable  Inputs
(Level 3)		  

Assets:

       

Investment in unconsolidated entity - GreenFiber

      $             -         $             -         $             6,502    

Long lived asset group - Maine Energy

      $             -         $             -         $             1,551    
  

 

 

    

 

 

    

 

 

  

Liabilities:

       

Guaranty

      $ -         $ -         $ 264