Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Financial Instruments

v2.4.0.6
Fair Value of Financial Instruments
 3 Months Ended
Feb. 29, 2012
Fair Value of Financial Instruments [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS

Note 6. FAIR VALUE OF FINANCIAL INSTRUMENTS

Valuation Techniques

In general, and where applicable, the Company uses readily available market quotations based upon the last updated sales price from the principal market to determine fair value. This pricing methodology applies to the Company’s Level 1 trading securities.

The Company’s other equity securities are classified as Level 3. See discussion of the valuation technique and assumptions in Note 2.

Various inputs are used in determining the fair value of the Company’s assets and liabilities. These inputs are summarized in the three broad levels listed below:

 

  •  

Level 1 — quoted prices in active markets for identical investments.

 

  •  

Level 2 — other significant observable inputs (including quoted prices for similar investments, market corroborated inputs,etc.).

 

  •  

Level 3 — significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following tables provide the fair value measurements of applicable Company assets and liabilities by level within the fair value hierarchy as of February 29, 2012 and November 30, 2011. These assets and liabilities are measured on a recurring basis.

February 29, 2012

 

                                 
Description   February 29, 2012     Level 1     Fair Value
Level 2		     Level 3  

Assets:

                                

Trading securities

   $ 29,503,101      $ 29,503,101      $ —       $ —   

Other equity securities

     47,269,729        —        —         47,269,729   
   

 

 

    

 

 

    

 

 

    

 

 

  

Total Assets

   $ 76,772,830      $ 29,503,101      $ —       $ 47,269,729   
   

 

 

    

 

 

    

 

 

    

 

 

  

 

November 30, 2011

 

                                
Description   November 30, 2011     Level 1     Fair Value
Level 2		     Level 3  

Assets:

                                

Trading securities

   $ 27,037,642      $ 27,037,642      $ —       $ —   

Other equity securities

     41,856,730        —        —         41,856,730   
   

 

 

    

 

 

    

 

 

    

 

 

  

Total Assets

   $ 68,894,372      $ 27,037,642      $ —       $ 41,856,730   
   

 

 

    

 

 

    

 

 

    

 

 

  

 

The changes for all Level 3 assets measured at fair value on a recurring basis using significant unobservable inputs for the three months ended February 29, 2012 and February 28, 2011, are as follows:

 

                 
Description   Three months ended
February 29, 2012		     Three months ended
February 28, 2011		  

Fair value beginning balance

   $ 41,856,730      $ 72,929,409   

Total realized and unrealized (losses) gains included in net income

     6,069,194        (744,584 ) 

Purchases

     —        400,000   

Sales

     —        (400,000 ) 

Return of capital adjustments impacting cost of basis securities

     (656,195 )      (84,009 ) 
   

 

 

    

 

 

  

Fair value ending balance

   $ 47,269,729      $ 72,100,816   
   

 

 

    

 

 

  

The amount of total gains (losses) for the period included in net income attributable to the change in unrealized gains (losses) relating to assets still held at the reporting date

   $ 6,069,194      $ (744,584 ) 
   

 

 

    

 

 

  

The Company utilizes the beginning of reporting period method for determining transfers between levels. There were no transfers between levels for the three months ended February 29, 2012 and February 28, 2011, respectively.

Certain condensed financial information of the unconsolidated affiliates follows. The information is the most recently available financial information for these companies, which is the three months ending December 31, 2011 as reported by the portfolio companies for High Sierra Energy LP (7.1 percent equity interest), VantaCore Partners LP, (20.1 percent equity interest) and Lighfoot Capital Partners LP (6.7 percent equity interest).

 

                     

Revenues

   $  818,192,834             Current assets   $  424,194,000  

Operating expenses

   $ 798,060,623             Noncurrent assets   $ 491,438,000  

Net Income

   $ 13,627,754             Current liabilities   $ 336,763,000  
                    Noncurrent liabilities   $ 174,049,000  
                    Partner’s equity   $ 404,820,000