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Fair Value Measurements
 12 Months Ended
Jan. 31, 2015
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 19—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:

 

  •  

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

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
  •  

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

Cash and cash equivalents; accounts receivables; line of credit receivable; accounts payable, note receivable, accrued compensation and other expenses; and income tax payable are reflected in the consolidated balance sheet at carrying value, which approximates fair value due to the short term nature of the these instruments.

 

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

 

January 31, 2015

    Level 1      Level 2      Level 3      Total  
(In thousands)                            

Money market funds (included in cash and cash equivalents)

    $ 3,028       $ —        $ —        $ 3,028   

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

      —          15,174         —          15,174   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 3,028       $ 15,174       $ —        $ 18,202   
  

 

 

     

 

 

     

 

 

     

 

 

  

January 31, 2014

    Level 1      Level 2      Level 3      Total  
(In thousands)                            

Money market funds (included in cash and cash equivalents)

    $ 4,734       $ —        $ —        $ 4,734   

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

      —          18,766         —          18,766   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 4,734       $ 18,766       $ —      $ 23,500   
  

 

 

     

 

 

     

 

 

     

 

 

  

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.

Non-financial assets measured at fair value on a non-recurring basis are summarized below:

 

January 31, 2015

    Level 1      Level 2      Level 3  
(In thousands)                     

Asset Held for Sale

    $ —        $ 1,900      $ —    
  

 

 

     

 

 

     

 

 

  

January 31, 2014

    Level 1      Level 2      Level 3  
(In thousands)                     

Asset Held for Sale

    $ —        $ 2,120      $ —    
  

 

 

     

 

 

     

 

 

  

Asset held for sale consists of Astro-Med’s former Grass facility in Rockland, Massachusetts which is being actively marketed for sale. In accordance with ASC 360, “Property, Plant and Equipment,” assets held for sale are written down to fair value less cost to sell and as such, the Company has recorded impairment charges of $220,000 and $779,000, in fiscal 2015 and 2014, respectively. In fiscal 2015, the impairment charge was included in other income (expense), other, net in the consolidated statement of income. In fiscal 2014, the impairment charge was included in the income from discontinued operations in the consolidated statement of income, as the Rockland facility was part of the Grass operations at that time. The Company estimated the fair value of the Rockland facility using the market values for similar properties less the cost to sell.