Fair Value Measurements

9 Months Ended

Oct. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE 9 — Fair Value Measurements

The guidance for fair value measurements establishes the authoritative definition of fair value, sets out a framework for measuring fair value, and outlines the required disclosures regarding 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. Assets and liabilities recorded at fair value are categorized using defined hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair value measurements, as follows:

· Level 1 – Quoted prices in active markets for identical assets or liabilities;

· Level 2 – Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable;

· Level 3 – Unobservable inputs in which little or no market activity exists, requiring an entity to develop its own assumptions of inputs that market participants would use to value the asset or liability.

Assets that are Measured at Fair Value on a Recurring Basis:

The following tables provide information by level for the Company's available-for-sale securities that were measured at fair value on a recurring basis (in thousands):

			Fair Value Measurements
As of October 31, 2015:			Using Inputs Considered as
	Fair Value		Level 1		Level 2		Level 3
Short-term investments:
Certificates of deposit	$	480	$	—	$	480	$	—
Commercial paper		1,500		—		1,500		—
Corporate bonds		2,821		—		2,821		—
Municipal bonds		208		—		208		—
Total assets	$	5,009	$	—	$	5,009	$	—

			Fair Value Measurements
As of January 31, 2015:			Using Inputs Considered as
	Fair Value		Level 1		Level 2		Level 3
Short-term investments:
Certificates of deposit	$	4,078	$	—	$	4,078	$	—
Commercial paper		7,384		—		7,384		—
Corporate bonds		1,616		—		1,616		—
Municipal bonds		215		—		215		—
Total current assets		13,293		—		13,293		—
Long-term investments:
Corporate bonds		2,853		—		2,853		—
U.S. Agency securities		1,899		—		1,899		—
Total non-current assets		4,752		—		4,752		—
Total assets	$	18,045	$	—	$	18,045	$	—

The Company's available-for-sale securities were valued based on quoted prices for similar assets in active markets or quoted prices for identical or similar assets in markets in which there were fewer transactions. The Company had $5.0 million of investments as of October 31, 2015, and there were no transfers of assets between Level 1 and Level 2 of the fair value measurement hierarchy during the thirty-nine week periods ended October 31, 2015, and November 1, 2014. According to its policy, the Company recognizes transfers into levels and transfers out of levels on the date of the event or when a change in circumstances causes a transfer.

Assets that are Measured at Fair Value on a Non-recurring Basis:

The following table summarizes certain information for non-financial assets for the thirty-nine weeks ended October 31, 2015 and the fiscal year ended January 31, 2015, that are measured at fair value on a non-recurring basis in periods subsequent to an initial recognition period.  The Company places amounts into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. 

	Thirty-Nine Weeks Ended		Fiscal Year Ended
Long-Lived Assets Held and Used (in thousands)	October 31, 2015		January 31, 2015
Carrying value	$	219	$	270
Fair value measured using Level 3 inputs	$	37	$	54
Impairment charge	$	182	$	216

All of the fair value measurements included in the table above were based on significant unobservable inputs (Level 3). The Company determines fair value for measuring assets on a non-recurring basis using a discounted cash flow approach as discussed in Note 1, Nature of Business and Significant Accounting Policies in our Form 10-K for the year ended January 31, 2015. In determining future cash flows, the Company uses its best estimate of future operating results, which requires the use of significant estimates and assumptions, including estimated sales, merchandise margin and expense levels, and the selection of an appropriate discount rate; therefore, differences in the estimates or assumptions could produce significantly different results. General economic uncertainty impacting the retail industry and continuation of recent trends in company performance makes it reasonably possible that additional long-lived asset impairments could be identified and recorded in future periods.

The fair value measurement of the long-lived assets encompasses the following significant unobservable inputs:

	Range
Unobservable Inputs	Fiscal 2015	Fiscal 2014
Weighted Average Cost of Capital (WACC)	15%	15%
Annual sales growth	0% to 3%	(3%) to 3.5%

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