XML 54 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
Fair Value Of Financial Assets And Financial Liabilities
 9 Months Ended
Oct. 31, 2011
Fair Value Of Financial Assets And Financial Liabilities [Abstract]  
Fair Value Of Financial Assets And Financial Liabilities

5. Fair Value of Financial Assets and Financial Liabilities

The Company utilizes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach and cost approach that relate to its financial assets and financial liabilities). The levels of the hierarchy are described as follows:

 

  •  

Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities.

 

  •  

Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

 

  •  

Level 3: Unobservable inputs that reflect the reporting entity's own assumptions.

Management's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of financial assets and financial liabilities and their placement within the fair value hierarchy. The level in the fair value hierarchy within which the fair value measurement, in its entirety, falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company recognizes transfers between levels at the end of each reporting period. As of October 31, 2011 and October 31, 2010 there were no transfers of assets between levels. The Company's financial assets that are accounted for at fair value on a recurring basis are presented in the tables below:

 

                                 
     Marketable Securities Fair Value as of
October 31, 2011		  
     Level 1      Level 2      Level 3      Total  

Assets:

                                    

Corporate bonds

    $ 81,407       $ —         $ —         $ 81,407   

Municipal and pre-refunded municipal bonds

      —           64,462        —           64,462   

Auction rate securities

      —           —           20,956         20,956   

Certificate of deposit

      6,969         —           —           6,969   

Federal government agencies

      2,001         —           —           2,001   
    

 

 

     

 

 

     

 

 

     

 

 

  
     $ 90,377       $ 64,462       $ 20,956       $ 175,795   
    

 

 

     

 

 

     

 

 

     

 

 

  
   
     Marketable Securities Fair Value as of
January 31, 2011		  
     Level 1      Level 2      Level 3      Total  

Assets:

                                    

Corporate bonds

    $ 137,559       $ —         $ —         $ 137,559   

Municipal and pre-refunded municipal bonds

      —           186,404         —           186,404   

Auction rate securities

      —           —           29,462         29,462   

Federal government agencies

      59,175         —           —           59,175   

Treasury bills

      30,353         —           —           30,353   

FDIC insured corporate bonds

      23,555         —           —           23,555   

Variable demand notes

      —           1,900         —           1,900   
    

 

 

     

 

 

     

 

 

     

 

 

  
     $ 250,642       $ 188,304       $ 29,462       $ 468,408   
    

 

 

     

 

 

     

 

 

     

 

 

  
   
     Marketable Securities Fair Value as of
October 31, 2010		  
     Level 1      Level 2      Level 3      Total  

Assets:

                                    

Municipal and pre-refunded municipal bonds

    $ —         $ 217,181       $ —         $ 217,181   

Auction rate securities

      —           —           30,143         30,143   

Federal government agencies

      75,787         —           —           75,787   

Treasury bills

      39,565         —           —           39,565   

FDIC insured corporate bonds

      41,679         —           —           41,679   

Variable rate demand notes

      —           31,925         —           31,925   
    

 

 

     

 

 

     

 

 

     

 

 

  
     $ 157,031       $ 249,106       $ 30,143       $ 436,280   
    

 

 

     

 

 

     

 

 

     

 

 

  

 

As of October 31, 2011, all of the Company's Level 3 financial instruments consisted of ARS that failed at auction. There was insufficient observable market information to determine fair value for these financial instruments. The Company estimated the fair values for these securities by incorporating assumptions that market participants would use in their estimates of fair value. Some of these assumptions included credit quality, collateralization, final stated maturity, estimates of the probability of being called or becoming liquid prior to final maturity, redemptions of similar ARS, previous market activity for the same investment security, impact due to extended periods of maximum auction rates and valuation models. As a result of this review, the Company determined its ARS to have a temporary impairment of $2,694, $3,788, and $3,707 as of October 31, 2011, January 31, 2011 and October 31, 2010, respectively. The estimated fair values could change significantly based on future market conditions. The Company will continue to assess the fair value of its ARS for substantive changes in relevant market conditions, changes in its financial condition or other changes that may alter its estimates described above.

Below is a reconciliation of the beginning and ending ARS balances that the Company valued using a Level 3 valuation for the periods shown.

 

                         
     Three Months Ended
October 31, 2011		     Fiscal Year Ended
January 31, 2011		     Three Months Ended
October 31, 2010		  

Balance at beginning of period

    $ 23,504      $ 33,505      $ 31,457   

Total gains realized/unrealized:

                         

Included in earnings

      —          —          —     

Included in other comprehensive income

      327        332        161   

Settlements

      (2,875 )      (4,375 )      (1,475 ) 

Transfers in and/or out of Level 3

      —          —          —     
    

 

 

    

 

 

    

 

 

  

Balance at end of period

    $ 20,956      $ 29,462      $ 30,143   
    

 

 

    

 

 

    

 

 

  

Unrealized losses included in accumulated other comprehensive loss related to assets still held at reporting date

    $ (2,694 )    $ (3,788 )    $ (3,707 ) 
    

 

 

    

 

 

    

 

 

  

Total gains for the period included in earnings attributable to the change in unrealized gains or losses related to assets still held at reporting date

    $ —        $ —        $ —     
    

 

 

    

 

 

    

 

 

  

 

                 
     Nine Months Ended
October 31, 2011		     Nine Months Ended
October 31, 2010		  

Balance at beginning of period

    $ 29,462      $ 33,505   

Total gains realized/unrealized:

                 

Included in earnings

      —          —     

Included in other comprehensive income

      1,094        413   

Settlements

      (9,600 )      (3,775 ) 

Transfers in and/or out of Level 3

      —          —     
    

 

 

    

 

 

  

Balance at end of period

    $ 20,956      $ 30,143   

Unrealized losses included in accumulated other comprehensive loss related to assets still held at reporting date

    $ (2,694 )    $ (3,707 ) 
    

 

 

    

 

 

  

Total gains for the period included in earnings attributable to the change in unrealized gains or losses related to assets still held at reporting date

    $ —        $ —