2. Financial Instruments and Fair Value

The Company invested a portion of its cash in debt securities that are denominated in U.S. dollars. The investment portfolio consists of money market funds, demand deposit, 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 as follows:

	As of July 31, 2016
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Money market funds	$	103	$	—	$	—		$	103
Demand deposit		10,000		—		—			10,000
Commercial paper		7,479		—		—			7,479
Corporate bonds		19,342		17		(2	)		19,357
Asset-backed securities		8,446		6		—			8,452
U.S. government securities		13,197		11		—			13,208
Agency bonds		2,023		1		—			2,024
Total cash equivalents and marketable securities	$	60,590	$	35	$	(2	)	$	60,623

	As of January 31, 2016
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Money market funds	$	530	$	—	$	—		$	530
Commercial paper		2,598		—		—			2,598
Corporate bonds		21,342		7		(9	)		21,340
Asset-backed securities		4,586		—		(1	)		4,585
U.S. government securities		9,274		4		(6	)		9,272
Agency bonds		2,044		—		(2	)		2,042
Total cash equivalents and marketable securities	$	40,374	$	11	$	(18	)	$	40,367

	As of
	July 31, 2016		January 31, 2016
	(in thousands)
Included in cash equivalents	$	10,103	$	530
Included in marketable securities		50,520		39,837
Total cash equivalents and marketable securities	$	60,623	$	40,367

The contractual maturities of the investments at July 31, 2016 and January 31, 2016 were as follows:

	As of
	July 31, 2016		January 31, 2016
	(in thousands)
Due within one year	$	52,856	$	33,449
Due within one to two years		7,767		6,918
Total cash equivalents and marketable securities	$	60,623	$	40,367

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 July 31, 2016 and January 31, 2016, respectively.

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 demand deposit 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 assets 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 July 31, 2016 and January 31, 2016:

	As of July 31, 2016
	Total		Level 1		Level 2		Level 3
	(in thousands)
Money market funds	$	103	$	103	$	—	$	—
Demand deposit		10,000		10,000		—
Commercial paper		7,479		—		7,479		—
Corporate bonds		19,357		—		19,357		—
Asset-backed securities		8,452		—		8,452		—
U.S. government securities		13,208		—		13,208		—
Agency bonds		2,024		—		2,024		—
Total cash equivalents and marketable securities	$	60,623	$	10,103	$	50,520	$	—

	As of January 31, 2016
	Total		Level 1		Level 2		Level 3
	(in thousands)
Money market funds	$	530	$	530	$	—	$	—
Commercial paper		2,598		—		2,598		—
Corporate bonds		21,340		—		21,340		—
Asset-backed securities		4,585		—		4,585		—
U.S. government securities		9,272		—		9,272		—
Agency bonds		2,042		—		2,042		—
Total cash equivalents and marketable securities	$	40,367	$	530	$	39,837	$	—