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FAIR VALUE
 12 Months Ended
Jan. 31, 2015
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]

3. FAIR VALUE


The Company applies ASC 820, which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.


The Company determines the fair market values of its financial instruments based on the fair value hierarchy established by ASC 820, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values which are provided below. The Company carries certain cash equivalents, investments and derivative liabilities at fair value.


The fair values of derivative assets and liabilities traded in the over-the-counter market are determined using quantitative models that require the use of multiple market inputs including interest rates, prices and indices to generate pricing and volatility factors, which are used to value the position. The predominance of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services. Estimation risk is greater for derivative asset and liability positions that are either option-based or have longer maturity dates where observable market inputs are less readily available or are unobservable, in which case interest rate, price or index scenarios are extrapolated in order to determine the fair value. The fair values of derivative assets and liabilities include adjustments for market liquidity, counterparty credit quality, the Company’s own credit standing and other specific factors, where appropriate. The fair values of property and equipment are determined by using various models that discount future expected cash flows. Estimation risk is greater for vacant properties as the probability of expected cash flows from the use of vacant properties is difficult to predict.


To ensure the prudent application of estimates and management judgment in determining the fair value of derivative assets and liabilities and property and equipment, various processes and controls have been adopted, which include: (i) model validation that requires a review and approval for pricing, financial statement fair value determination and risk quantification; and (ii) periodic review and substantiation of profit and loss reporting for all derivative instruments. Financial assets and liabilities measured at fair value at January 31, 2015 on a recurring basis are summarized below (amounts in thousands):


    Level 1     Level 2     Level 3     Total
Fair
Value 		 
                         
Investment in Cooperative Asset (1)   $ —     $ —     $ 333     $ 333  

Financial assets and liabilities measured at fair value at January 31, 2014 on a recurring basis are summarized below (amounts in thousands):


    Level 1     Level 2     Level 3     Total
Fair
Value 		 
                                 
Cash Equivalents   $ 2     $ —     $ —     $ 2  
Money Market Mutual Fund (1)     120       —       —       120  
Investment in Cooperative (1)     —       —       289       289  
Total Assets   $ 122     $ —     $ 289     $ 411  
                                 
Interest Rate Swap Derivative Liabilities   $ —     $ 1,141     $ —     $ 1,141  

  (1) The money market mutual fund is included in “Restricted investments and deposits” and the investment in cooperative is included in “Other assets” on the accompanying Consolidated Balance Sheets.

The following table provides a reconciliation of the activity related to assets measured at fair value on a recurring basis using Level 3 inputs (amounts in thousands):


    Investment in
Cooperative 		 
       
Balance, January 31, 2013   $ 252  
Fair value adjustment     37  
Balance, January 31, 2014     289  
Fair value adjustment     44  
Balance, January 31, 2015   $ 333  

The Company determined the fair value of the investment in cooperative by using a discounted cash flow analysis on the expected cash flows. Inputs used in the analysis include the face value of the allocated equity amount, the projected term for repayment based upon a historical trend, and a risk adjusted discount rate based on the expected compensation participants would demand because of the uncertainty of the future cash flows. The inherent risk and uncertainty associated with unobservable inputs could have a significant effect on the actual fair value of the investment.


No other financial instruments were elected to be measured at fair value in accordance with ASC 470-20-25-21.


The Company reviews its long-lived assets for impairment on at least an annual basis based on the carrying value of these assets. As a result of vacancies at owned real estate locations, the Company tested certain long-lived assets for impairment using a fair value measurement approach. The fair value measurement approach utilizes a number of significant unobservable inputs or Level 3 assumptions. These assumptions include, among others, the implied fair value of these assets using an income approach by preparing a discounted cash flow analysis and the implied fair value of these assets using recent sales data of comparable properties, and other subjective assumptions. Upon completion of its impairment analysis, which was performed at various times throughout fiscal year 2014, the Company determined that the carrying value of certain long-lived assets exceeded the fair value of these assets. Accordingly, in fiscal year 2014, the Company recorded long-lived asset impairment charges of approximately $68,000. There were no assets measured at fair value at January 31, 2015 on a non-recurring basis.


Assets measured at fair value at January 31, 2014 on a non-recurring basis are summarized below (amounts in thousands):


    Year Ended
January 31, 2014 		    Level 1     Level 2     Level 3     Total
Losses 		 
Property and equipment, net   $ 521     $ —     $ —     $ 521     $ 55