Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

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Fair Value Measurements
 3 Months Ended
Apr. 30, 2011
Fair Value Measurements [Abstract]  
Fair Value Measurements
5. Fair Value Measurements
The carrying value of cash and cash equivalents, accounts receivable, and accounts payable approximates their estimated fair values due to the short maturities of these instruments.
On February 3, 2008, the Company adopted the ASC rules for fair value measurements and disclosures. The adoption had no impact on the Company’s financial statements. The new rules established a three-tier hierarchy for fair value measurements, which prioritizes the inputs used in measuring fair value as follows:
  •   Level 1 — observable inputs such as quoted prices for identical instruments in active markets.
 
  •   Level 2 — inputs other than quoted prices in active markets that are observable either directly or indirectly through corroboration with observable market data.
 
  •   Level 3 — unobservable inputs in which there is little or no market data, which would require the Company to develop its own assumptions.
As of April 30, 2011, the Company held financial liabilities of $1,826 related to its non-qualified deferred compensation plan. The liabilities have been categorized as Level 2 as they are based on third-party reported net asset values which are based primarily on quoted market prices of underlying assets of the funds within the plan.