Fair Value Measurement

12 Months Ended

Jan. 31, 2013

Notes To Financial Statements [Abstract]

Fair Value Measurement

Fair Value Measurement

The following table presents information about financial assets and liabilities measured at fair value on a recurring basis as of January 31, 2013:

	Fair Value			Level 1		Level 2		Level 3
Contingent consideration	$	(6,016	)	$	—	$	—	$	(6,016	)

The following table presents information about financial assets and liabilities measured at fair value on a recurring basis as of January 31, 2012:

	Fair Value			Level 1		Level 2		Level 3
Contingent consideration	$	(6,120	)	$	—	$	—	$	(6,120	)

The FASB's authoritative guidance for the hierarchy of valuation techniques is based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources. Unobservable inputs reflect our market assumptions. The fair value hierarchy consists of the following three levels:

• Level 1—Quoted prices for identical instruments in active markets;

• Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations whose significant inputs are observable; and

• Level 3—One or more significant inputs to the valuation model are unobservable.

In connection with certain acquisitions, payment of a portion of the purchase price is contingent typically upon the acquired business’ achievement of certain revenue goals. As of January 31, 2013, of the total recorded balance, $1,197 was included in accrued and other liabilities and $4,819 was included in other long-term liabilities on our consolidated balance sheet. As of January 31, 2012, of the total recorded balance, $510 was included in accrued and other liabilities and $5,610 was included in other long-term liabilities on our consolidated balance sheet.

We have estimated the fair value of our contingent consideration as the present value of the expected payments over the term of the arrangements. The fair value measurement of our contingent consideration as of January 31, 2013 encompasses the following significant unobservable inputs:

Unobservable Inputs	Range
Total estimated contingent consideration	$0	-	$7,904
Discount rate	14%	-	16%
Timing of cash flows (in years)	0	-	5

Changes in the fair value of our contingent consideration are primarily driven by changes in the estimated amount and timing of payments, resulting from changes in the forecasted revenues of the acquired businesses. Significant changes in any of the inputs in isolation could result in a fluctuation in the fair value measurement of contingent consideration. Changes in fair value are recognized in special charges in our consolidated statement of income in the period in which the change is identified.

The following table summarizes contingent consideration activity:

Balance as of January 31, 2011	$	5,342
New contingent consideration	1,090
Payments/adjustments	(540		)
Interest accretion	228
Balance as of January 31, 2012	$	6,120
New contingent consideration	1,208
Payments	(1,504		)
Adjustments	(42		)
Interest accretion	234
Balance as of January 31, 2013	$	6,016

The following table summarizes the fair value and carrying value of notes payable:

As of January 31,	2013		2012
Fair value of notes payable	$	293,867	$	259,821
Carrying value of notes payable	$	218,546	$	214,573

We based the fair value of notes payable on the quoted market price or rates available to us for instruments with similar terms and maturities (Level 2). Of the total carrying value of notes payable, there was none classified as current on our consolidated balance sheet as of January 31, 2013 compared to $1,349 as of January 31, 2012.

The carrying amounts of cash equivalents, trade accounts receivable, net, term receivables, short-term borrowings, accounts payable, and accrued liabilities approximate fair value because of the short-term nature of these instruments or because amounts have been appropriately discounted