Fair Value Measurements

6 Months Ended

Jul. 31, 2015

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract]

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 tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in thousands) as of July 31, 2015 and 2014 and January 31, 2015:

		Fair Value at July 31, 2015
	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Assets:
Available-for-sale securities	Other current assets	$	331	$	—	$	—	$	331
SERP assets - employer	Other non-current assets		1,667		—		—		1,667
SERP assets - employee	Other non-current assets		26,107		—		—		26,107
Hedge derivatives	Other current assets		—		103		—		103
Total		$	28,105	$	103	$	—	$	28,208
Liabilities:
SERP liabilities - employee	Other non-current liabilities	$	26,107	$	—	$	—	$	26,107
Hedge derivatives	Accrued liabilities		—		645		—		645
Total		$	26,107	$	645	$	—	$	26,752

		Fair Value at January 31, 2015
	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Assets:
Available-for-sale securities	Other current assets	$	314	$	—	$	—	$	314
Long-term investment	Other non-current assets		—		—		1,240		1,240
SERP assets - employer	Other non-current assets		1,351		—		—		1,351
SERP assets - employee	Other non-current assets		24,811		—		—		24,811
Hedge derivatives	Other current assets		—		1,298		—		1,298
Total		$	26,476	$	1,298	$	1,240	$	29,014
Liabilities:
SERP liabilities - employee	Other non-current liabilities	$	24,811	$	—	$	—	$	24,811
Hedge derivatives	Accrued liabilities		—		71		—		71
Total		$	24,811	$	71	$	—	$	24,882

		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

The fair values of the Company’s available-for-sale securities are based on quoted prices. The fair value of the long-term investment at January 31, 2015 is based on the purchase price plus eight percent calculated annually. During the three months ended July 31, 2015, this investment converted to common and preferred shares of a privately held company, accounted for under the cost method, with a carrying value of $1.3 million. This investment will be tested quarterly for any impairment. During the three months ended July 31, 2015 no impairment was recorded for this investment. Time deposits are classified as short-term investments and held to original maturity. 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. The hedge derivatives are entered into by the Company principally to reduce its exposure to Swiss franc and Euro currency 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.