Fair value measurements

6 Months Ended

Jan. 31, 2012

Fair value measurements

6. Fair value measurements:

The Company measures the fair value of its financial assets and liabilities and non-financial assets and liabilities at least annually using a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, as follows:

• Level 1 – Quoted prices in active markets for identical assets or liabilities.

• Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company’s cash equivalents at January 31, 2012 and July 31, 2011 are comprised primarily of demand deposits at highly rated financial institutions.

The following table provides the assets and liabilities carried at fair value measured on a recurring basis at January 31, 2012 and July 31, 2011:

	Fair Value Measurements at January 31, 2012 using
Liabilities	Quoted Prices in Active Markets for Indentical Assets Level 1			Significant Other Observable Inputs Level 2			Significant Unobservable Inputs Level 3			Total Carrying Value
Cash equivalents		$	—		$	9,641		$	—		$	9,641
Total assets		$	—		$	9,641		$	—		$	9,641
Contingent consideration		$	—		$	—		$	383		$	383
Total liabilities		$	—		$	—		$	383		$	383
	Fair Value Measurements at July 31, 2011 using
Liabilities	Quoted Prices in Active Markets for Indentical Assets Level 1			Significant Other Observable Inputs Level 2			Significant Unobservable Inputs Level 3			Total Carrying Value
Cash equivalents		$	—		$	9,600		$	—		$	9,600
Total assets		$	—		$	9,600		$	—		$	9,600
Contingent consideration		$	—		$	—		$	340		$	340
Total liabilities		$	—		$	—		$	340		$	340