Fair Value Measurement

12 Months Ended

Jan. 31, 2012

Fair Value Measurement [Abstract]

Fair Value Measurement

(9)    Fair Value Measurement

Fair Value Hierarchy

The following hierarchy of valuation inputs is based upon whether the inputs to valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs) or reflect the Company's own assumptions of market participant valuation (unobservable inputs):

• Level 1—Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;

• Level 2—Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly;

• Level 3—Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

Observable market data should be used if such data is available without undue cost and effort.

Item Measured at Fair Value on a Recurring Basis

The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis at January 31, 2011 and 2012 (in thousands):

Description	Estimated Fair Value at January 31, 2011		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)
Assets:
Money market funds	$	102,803	$	102,803	$	—	$	—
Total Assets	$	102,803	$	102,803	$	—	$	—
Total Liabilities	$	—	$	—	$	—	$	—

Description	Estimated Fair Value at January 31, 2012		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)
Assets:
Money market funds	$	78,669	$	78,669	$	—	$	—
Total Assets	$	78,669	$	78,669	$	—	$	—
Total Liabilities	$	—	$	—	$	—	$	—

Fair Value of Financial Instruments

The carrying amount of the Company's financial instruments including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their respective fair values because of the relatively short period of time between origination of the instruments and their expected realization. The fair value of the Company's revolving term credit facility approximates its respective carrying amount because this instrument includes LIBOR-based interest rates that are variable and fluctuate based on market conditions.

The estimated fair values of certain of the Company's long-term debt obligations based on quoted market prices in effect as of January 31, 2011 and January 31, 2012 are as follows (in thousands):

	Carrying Amount		Fair Value
As of January 31, 2011:
2.30344% Senior Secured Term Loan due 2013	$	316,000	$	306,520
10.375% Senior Subordinated Notes due 2016	$	134,265	$	137,796
As of January 31, 2012:
2.53775% Senior Secured Term Loan due 2013	$	117,399	$	115,932
4.53775% Senior Secured Term Loan due 2016	$	191,101	$	187,279
10.375% Senior Subordinated Notes due 2016	$	134,265	$	138,293

Financial instruments that potentially subject us to credit risk consist of cash and cash equivalents, and trade accounts receivable. The Company maintains the majority of its cash and cash equivalents balances with recognized financial institutions which follow the Company's investment policy. The Company has not experienced any significant losses on these investments to date. One of the most significant credit risks is the ultimate realization of accounts receivable. This risk is mitigated by (i) ongoing credit evaluation of our customers, and (ii) frequent contact with our customers, especially our most significant customers, thus enabling the Company to monitor current changes in business operations and to respond accordingly. The Company generally does not require collateral for sales on credit. The Company considers these concentrations of credit risks in establishing our allowance for doubtful accounts.