Fair Value Measurement (Policies)

9 Months Ended

Oct. 31, 2013

The FASB's authoritative guidance for the hierarchy of valuation techniques is based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources. Unobservable inputs reflect our market assumptions. The fair value hierarchy consists of the following three levels:

•Level 1—Quoted prices for identical instruments in active markets;


▪	Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations whose significant inputs are observable; and

•Level 3—One or more significant inputs to the valuation model are unobservable.

Short-term investments fair value determination

We based the fair value of bank certificates of deposit included in short-term investments on quoted market prices for similar instruments in markets that are not active (Level 2).

Business combination contingent consideration

We have estimated the fair value of our contingent consideration as the present value of the expected payments over the term of the arrangements.

Notes payable fair value determination

We based the fair value of notes payable on the quoted market price or rates available to us for instruments with similar terms and maturities (Level 2).