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Fair Value Measurements
 12 Months Ended
Jan. 31, 2012
Fair Value Measurements [Abstract]  
Fair Value Measurements

Note 15—Fair Value Measurements

We measure our financial assets at fair value on a recurring basis in accordance with the guidance provided in ASC 820, "Fair Value Measurement and Disclosures" which defines fair value 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. In addition, ASC 820 establishes a three-tiered hierarchy for inputs used in management's determination of fair value of financial instruments that emphasizes the use of observable inputs over the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that reflect management's belief about the assumptions market participants would use in pricing a financial instrument based on the best information available in the circumstances.

The fair value hierarchy is summarized as follows:

 

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

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Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

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Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

Assets measured at fair value on a recurring basis are summarized below:

 

January 31, 2012

    Level 1      Level 2      Level 3      Total  

Money market funds (included in cash and cash equivalents)

    $ 5,922,179       $ —         $ —         $ 5,922,179   

State and municipal obligations (included in Securities available for sale)

      11,335,924         —           —           11,335,924   

Note Receivable

      —           969,700        —           969,700   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 17,258,103       $ 969,700       $ —         $ 18,227,803   
  

 

 

     

 

 

     

 

 

     

 

 

  

January 31, 2011

    Level 1      Level 2      Level 3      Total  

Money market funds (included in cash and cash equivalents)

    $ 4,926,983       $ —         $ —         $ 4,926,983   

State and municipal obligations (included in Securities available for sale)

      12,910,232         —           —           12,910,232   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 17,837,215       $ —         $ —         $ 17,837,215   
  

 

 

     

 

 

     

 

 

     

 

 

  

We did not have any transfers of investments into or out of Level 1 or Level 2 during fiscal 2012.

For our money market funds and state and municipal obligations, we utilize the market approach to measure fair value. The market approach is based on using quoted market prices for identical assets.

For our Note Receivable we utilized the income approach to measure fair value by discounting the present value of the Note. The discount rate used is based on similar rates used for high credit ratings and highly collateralized lending.