Fair Value Measurements

6 Months Ended

Jul. 31, 2014

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 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 tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in thousands):

		Fair Value at July 31, 2014
	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Assets:
Available-for-sale securities	Other current assets	$	377	$	—	$	—	$	377
SERP assets - employer	Other non-current assets		1,521		—		—		1,521
SERP assets - employee	Other non-current assets		23,382		—		—		23,382
Hedge derivatives	Other current assets		—		1		—		1
Total		$	25,280	$	1	$	—	$	25,281
Liabilities:
SERP liabilities - employee	Other non-current liabilities	$	23,382	$	—	$	—	$	23,382
Hedge derivatives	Accrued liabilities		—		829		—		829
Total		$	23,382	$	829	$	—	$	24,211

		Fair Value at January 31, 2014
	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Assets:
Available-for-sale securities	Other current assets	$	576	$	—	$	—	$	576
Time deposits	Short-term investments		33,099						33,099
SERP assets - employer	Other non-current assets		1,117		—		—		1,117
SERP assets - employee	Other non-current assets		20,854		—		—		20,854
Hedge derivatives	Other current assets		—		403		—		403
Total		$	55,646	$	403	$	—	$	56,049
Liabilities:
SERP liabilities - employee	Other non-current liabilities	$	20,854	$	—	$	—	$	20,854
Hedge derivatives	Accrued liabilities		—		173		—		173
Total		$	20,854	$	173	$	—	$	21,027

		Fair Value at July 31, 2013
	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Assets:
Available-for-sale securities	Other current assets	$	399	$	—	$	—	$	399
SERP assets - employer	Other non-current assets		1,171		—		—		1,171
SERP assets - employee	Other non-current assets		19,302		—		—		19,302
Hedge derivatives	Other current assets		—		863		—		863
Total		$	20,872	$	863	$	—	$	21,735
Liabilities:
SERP liabilities - employee	Other non-current liabilities	$	19,302	$	—	$	—	$	19,302
Hedge derivatives	Accrued liabilities		—		40		—		40
Total		$	19,302	$	40	$	—	$	19,342

The fair values of the Company’s available-for-sale securities are based on quoted prices. Time deposits are classified as short-term investments and held to original maturity. 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.