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Note 3 - Fair Value Measurements
 3 Months Ended
Apr. 30, 2017
Notes to Financial Statements  
Fair Value, Measurement Inputs, Disclosure [Text Block]
3.
   FAIR VALUE MEASUREMENTS
 
When determining fair value, the Company uses a
three
-tier value hierarchy which prioritizes the inputs used in measuring fair
value. Whenever possible, the Company uses observable market data. The Company relies on unobservable inputs only when observable market data is
not
available. Classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability.
 
The following table sets forth the financial assets and liabilities, measured at fair value, as of
April 30, 2017
and
January 31, 2017:
 
   
Fair value measurement at reporting date using
   
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
   
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
   
 
 
 
  
(in thousands)
    
Money market mutual funds as of April 30, 2017
(a)
  $
121,699
      
 
    
Money market mutual funds as of January 31, 2017
(a)
   $
116,043
      
 
    
Liability related to the interest rate swap as of April 30, 2017
(b)
    
 
     $
(177
 )  
Liability related to the interest rate swap as of January 31, 2017
(b)
   
 
     $
(190
 )  
 
___________________________
(a) Money market mutual funds are recorded at fair value based upon quoted market prices.
(b) The liability related to the interest rate swap is recorded at fair value based upon a valuation model that uses relevant observable market inputs at quoted intervals, such as forward yield curves.
 
Money market mutual funds are classified as part of “Cash and equivalents” in the accompanying Condensed Consolidated Balance Sheets. The amount of cash and equivalents deposited with commercial banks was
$3
1
million and
$29
million as of
April 30, 2017
and
January 31, 2017,
respectively.
 
The Company
’s line of credit and notes payable both bear a variable market interest rate commensurate with the Company’s credit standing. Therefore, the carrying amounts outstanding under the line of credit and note payable reasonably approximate fair value based on Level
2
inputs.
 
There have been
no
transfers between fair value measurements levels during the
three
months ended
April 30, 2017.
 
Derivative Instruments
 
The Company entered into an interest rate swap in
May 2012
to mitigate the exposure to the variability of
one
month LIBOR for its floating rate debt described in Note
6
“Debt” within these Notes to Condensed Consolidated Financial Statements. The fair value of the interest rate swap is reflected as
 a liability in the Condensed Consolidated Balance Sheets and the change in fair value is reported in “Other (income) expense” in the Condensed Consolidated Statements of Operations and Comprehensive Loss. The fair value of the interest rate swap is estimated as the net present value of projected cash flows based upon forward interest rates at the balance sheet date.
 
 
The fair values of the derivative instrument at
April 30, 2017
and
January 31, 2017
were as follows (in thousands):
 
 
   
Liability
  
   
 
 
 
  
Fair Value
  
   
Balance
Sheet
Location
    
April 30,
2017
    
January 31,
2017
  
Derivative instrument:
  
Interest rate swap
  
Other liabilities
     $
(177
 )   $
(190
 )
Total
    
 
     $
(177
 )   $
(190
 )
 
The change in fair value of the interest rate swap recognized in the Condensed Consolidated Statements of Operations and Comprehensive
Loss for the
three
months ended
April 30, 2017
and
April 30, 2016
was
$13,000
and $(
31,000
), respectively.