Fair Value Measurements

3 Months Ended

Apr. 30, 2013

FAIR VALUE MEASUREMENTS

NOTE 1 – FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Accounting guidance establishes a fair value hierarchy which prioritizes the inputs used in measuring fair value into three broad levels as follows:

• Level 1 – Quoted prices in active markets for identical assets or liabilities.
• Level 2 – Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly.
• Level 3 – Unobservable inputs based on the Company’s assumptions.

The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of April30, 2013 (in thousands):

FairValueatApril 30,2013

	Level1	Level2	Level3	Total
Assets:
Available-for-sale securities	$287	$—	$—	$287
SERP assets – employer	926	—		926
SERP assets – employee	18,615	—	—	18,615
Hedge derivatives	—	212	—	212
Total	$19,828	$212	$—	$20,040
Liabilities:
SERP liabilities – employee	$18,615	$—	$—	$18,615
Hedge derivatives	—	111	—	111
Total	$18,615	$111	$—	$18,726

The fair values of the Company’s available-for-sale securities are based on quoted prices.The hedge derivatives are entered into by the Company principally to reduce its exposure to the Swiss franc exchange rate risk.Fair values of the Company’s hedge derivatives are calculated based on quoted foreign exchange rates, quoted interest rates and market volatility factors. The assets related to the Company’s defined contribution supplemental executive retirement plan (“SERP”) consist of both employer (employee unvested) and employeeassets which are invested in investment funds with fair values calculated based on quoted market prices.The SERP liability represents the Company’s liability to the employees in the plan for their vested balances.