2. Financial Instruments and Fair Value

Beginning in fiscal year 2015, the Company invested a portion of its cash in debt securities that are denominated in United States dollars. The investment portfolio consists of money market funds, asset-backed securities, commercial paper, U.S. government securities, agency bonds and debt securities of corporations. All of the investments are classified as available-for-sale securities and reported at fair value in the condensed consolidated balance sheets. The following table summarizes the investments as of April 30, 2015 and January 31, 2015:

	As of April 30, 2015
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Money market funds	$	1,236	$	—	$	—		$	1,236
Commercial paper		1,499		—		—			1,499
Corporate bonds		32,560		2		(18	)		32,544
Asset-backed securities		2,889		—		—			2,889
U.S. government securities		999		—		—			999
Agency bonds		1,004		—		(1	)		1,003
Total cash equivalents and marketable securities	$	40,187	$	2	$	(19	)	$	40,170

	As of January 31, 2015
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Money market funds	$	2,427	$	—	$	—		$	2,427
Commercial paper		1,497		—		—			1,497
Corporate bonds		32,356		9		(10	)		32,355
Asset-backed securities		3,851		—		—			3,851
Total cash equivalents and marketable securities	$	40,131	$	9	$	(10	)	$	40,130

	As of
	April 30, 2015		January 31, 2015
	(in thousands)
Included in cash equivalents	$	2,253	$	2,427
Included in marketable securities		37,917		37,703
Total cash equivalents and marketable securities	$	40,170	$	40,130

The contractual maturities of the investments at April 30, 2015 and January 31, 2015 were as follows:

	As of
	April 30, 2015		January 31, 2015
	(in thousands)
Due within one year	$	33,672	$	37,559
Due within one to two years		6,498		2,571
Total cash equivalents and marketable securities	$	40,170	$	40,130

The unrealized losses on the available-for-sale securities were caused by fluctuations in market value and interest rates as a result of the economic environment. As the decline in market value was attributable to changes in market conditions and not credit quality, and because the Company neither intended to sell nor was it more likely than not that it would be required to sell these investments prior to a recovery of par value, the Company did not consider these investments to be other-than temporarily impaired as of April 30, 2015.

The following fair value hierarchy is applied for disclosure of the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows:

Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments.

Level 3—Unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation.

The Company measures the fair value of money market funds and agency bonds using quoted prices in active markets for identical assets and classifies them within Level 1. The fair value of the Company’s investments in other debt securities are obtained based on quoted prices for similar asserts in active markets, or model driven valuations using significant inputs derived from or corroborated by observable market data and are classified within Level 2.

The following table presents the fair value of the financial instruments measured on a recurring basis as of April 30, 2015 and January 31, 2015:

	As of April 30, 2015
	Total		Level 1		Level 2		Level 3
	(in thousands)
Money market funds	$	1,236	$	1,236	$	—	$	—
Commercial paper		1,499		—		1,499		—
Corporate bonds		32,544		—		32,544		—
Asset-backed securities		2,889		—		2,889		—
U.S. government securities		999		—		999		—
Agency bonds		1,003		—		1,003		—
Total cash equivalents and marketable securities	$	40,170	$	1,236	$	38,934	$	—

	As of January 31, 2015
	Total		Level 1		Level 2		Level 3
	(in thousands)
Money market funds	$	2,427	$	2,427	$	—	$	—
Commercial paper		1,497		—		1,497		—
Corporate bonds		32,355		—		32,355		—
Asset-backed securities		3,851		—		3,851		—
Total cash equivalents and marketable securities	$	40,130	$	2,427	$	37,703	$	—