Fair Value Measurements

6 Months Ended

Jul. 31, 2012

Fair Value Measurements [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 2 – 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 requires the use of observable market data, if such data is available without undue cost and effort and 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 July 31, 2012 (in thousands):

	Fair Value at July 31, 2012
	Level 1		Level 2		Level 3		Total
Assets:
Available-for-sale securities	$	215	$	—	$	—	$	215
SERP assets - employer		876		—		—		876
SERP assets - employee		16,177		—		—		16,177
Hedge derivatives		—		25		—		25
Total	$	17,268	$	25	$	—	$	17,293
Liabilities:
SERP liabilities - employee	$	16,177	$	—	$	—	$	16,177
Hedge derivatives		—		1,820		—		1,820
	$	16,177	$	1,820	$	—	$	17,997

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 employee assets 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.