Note 2 - Fair Value Measurements

12 Months Ended

Jan. 31, 2018

Notes to Financial Statements

Fair Value, Measurement Inputs, Disclosure [Text Block]

2.

FAIR VALUE MEASUREMENTS

When determining fair value, the Company uses a

three

-tier value hierarchy which prioritizes the inputs used in measuring fair value. Whenever possible, the Company uses observable market data. The Company relies on unobservable inputs only when observable market data is

not

available. Classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability.

•  Level

1

- Money market mutual funds are recorded at fair value based upon quoted market prices.

•  Level

2

- The asset or liability related to the interest rate swap is recorded at fair value based upon a valuation model that uses relevant observable market inputs at quoted intervals, such as forward yield curves.

The following table sets forth the financial assets and liabilities, measured at fair value, as of

January 31, 2018

and

January 31, 2017:

	Fair value measurement at reporting date using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(in thousands)
Money market mutual funds as of January 31, 2018	$	115,416
Money market mutual funds as of January 31, 2017	$	116,043
Asset related to the interest rate swap as of January 31, 2018			$	187
Liability related to the interest rate swap as of January 31, 2017			$	(190	)

Money market mutual funds are classified as part of “Cash and equivalents” in the accompanying Consolidated Balance Sheets. The amount of cash and equivalents

deposited with commercial banks was

$32

million and

$29

million as of

January 31, 2018

and

January 31, 2017,

respectively.

The Company

’s note payable bears a variable market interest rate commensurate with the Company’s credit standing. Therefore, the carrying amount outstanding under the note payable reasonably approximates fair value based on Level

2

inputs.

There have been

no

transfers between fair value measurements levels during the

12 months ended

January 31, 2018.

Derivative Instruments

The Company entered into an interest rate swap in

May 2012

to mitigate the exposure to the variability of

one

month LIBOR for its floating rate debt described in Note

8

“Debt” within these Notes to Consolidated Financial Statements. The fair value of the interest rate swap is reflected as an asset or liability in the Consolidated Balance Sheets and the change in fair value is reported in “Other (income) expense, net” in the Consolidated Statements of Operations and Comprehensive (Loss) Income. The fair value of the interest rate swap is estimated as the net present value of projected cash flows based upon forward interest rates at the balance sheet date.

The fair values of the derivative instrument at

January 31, 2018

and

January 31, 2017

were as follows (in thousands):

	Asset (Liability)
		Fair Value
	Balance Sheet Location	January 31, 2018		January 31, 2017
Derivative instrument:
Interest rate swap	Other assets (liabilities) net	$	187	$	(190	)
Total		$	187	$	(190	)

The change in fair value of the interest rate swap recognized in the Consolidated Statement of Operations and Comprehensive (Loss) Income for the

twelve

months ended

January 31, 2018,

2017

and

2016

was

$377,000,

$485,000

and $(

48,000

), respectively.