Fair Value Measurements

12 Months Ended

Jul. 31, 2011

Fair Value Measurements

Fair Value Measurements

9. Fair Value Measurements

The FASB issued fair value guidance that establishes how reporting entities should measure fair value for measurement and disclosure purposes. The guidance establishes a common definition of fair value applicable to all assets and liabilities measured at fair value and prioritizes the inputs into valuation techniques used to measure fair value. Accordingly, the Company uses valuation techniques which maximize the use of observable inputs and minimize the use of unobservable inputs when determining fair value. The three levels of the hierarchy are as follows:

Level 1: Inputs that reflect unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities;

Level 2: Inputs include quoted prices for similar assets and liabilities in active and inactive markets or that are observable for the asset or liability either directly or indirectly; and

Level 3: Unobservable inputs which are supported by little or no market activity.

The table below summarizes the Company's cash equivalents measured at fair value (all other assets and liabilities measured at fair value are immaterial) (in thousands):

	Fair Value Measurement as of July 31, 2011
Description	Balance at July 31, 2011		Level 1		Level 2		Level 3
US Treasury	$	8,381	$	8,381	$	--	$	--
Certificates of Deposit	$	2,490	$	--	$	2,490	$	--
	Fair Value Measurement as of July 31, 2010
Description	Balance at July 31, 2010		Level 1		Level 2		Level 3
Money Market	$	399	$	399	$	--	$	--
US Treasury	$	8,297	$	8,297	$	--	$	--
Certificates of Deposit	$	300	$	--	$	300	$	--

The Company's cash equivalents include money market funds (Level 1) and certificates of deposit (Level 2) which are measured utilizing quoted market prices or pricing models whereby all significant inputs are either observable or corroborated by observable market data.