FAIR VALUE

Fair value is 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. The inputs used to measure fair value are prioritized based on a three-level hierarchy. The three levels of inputs to measure fair value are as follows:


•	Level 1—inputs are unadjusted quoted prices for identical assets or liabilities that are available in active markets that the Company can access at the measurement date.


•	Level 2—inputs are other than quoted market prices included within Level 1 that are observable for assets or liabilities, directly or indirectly.


•	Level 3—inputs to the valuation methodology are unobservable.

The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. The three levels of the hierarchy and the distribution within it of the Company’s assets and liabilities, measured at fair value on a recurring basis, were as follows:



	Assets and Liabilities at Fair Value as of October 31, 2015
(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	79,212	$	—	$	—	$	79,212
Derivative financial instruments	—		1,769		—		1,769
Total assets measured at fair value	$	79,212	$	1,769	$	—	$	80,981
Liabilities:
Derivative financial instruments	—		396		—		396
Total liabilities measured at fair value	$	—	$	396	$	—	$	396



	Assets and Liabilities at Fair Value as of January 31, 2015
(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	122,047	$	—	$	—	$	122,047
Derivative financial instruments	—		10,293		—		10,293
Total assets measured at fair value	$	122,047	$	10,293	$	—	$	132,340
Liabilities:
Derivative financial instruments	—		—		—		—
Total liabilities measured at fair value	$	—	$	—	$	—	$	—

The level 2 assets and liabilities consist of derivative financial instruments, primarily forward foreign currency exchange contracts. The fair value of forward foreign currency exchange contracts is determined by using quoted market prices of the same or similar instruments, adjusted for counterparty risk.

Disclosures of Fair Value of Other Assets and Liabilities:

The Company’s borrowings under the Company's credit facilities are carried at historical cost in the accompanying Condensed Consolidated Balance Sheets. For disclosure purposes, the Company estimated the fair value of borrowings outstanding using a discounted cash flow analysis based on market rates obtained from independent third parties for similar types of debt. The inputs used to value the borrowings outstanding are considered to be Level 2 instruments.

The carrying amount and fair value of the Company's term loan facility were as follows:



(in thousands)	October 31, 2015		January 31, 2015
Gross borrowings outstanding, carrying amount	$	297,000	$	299,250
Gross borrowings outstanding, fair value	$	289,575	$	295,135

No borrowings were outstanding under the Company's senior secured revolving credit facility as of October 31, 2015 or January 31, 2015.