2. Financial Instruments and Fair Value

The Company has invested a portion of its cash in debt securities that are denominated in United States dollars. The investment portfolio consists of money market funds, demand deposits, asset-backed securities, commercial paper, U.S. government securities and debt securities of corporations. All of the investments are classified as available-for-sale securities and reported at fair value in the consolidated balance sheets as follows:

	As of January 31, 2017
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Money market funds	$	8,328	$	—	$	—		$	8,328
Demand deposits		10,000		—		—			10,000
Commercial paper		4,784		—		—			4,784
Corporate bonds		42,713		6		(41	)		42,678
Asset-backed securities		11,686		1		(12	)		11,675
U.S. government securities		23,409		6		(30	)		23,385
Total cash equivalents and marketable securities	$	100,920	$	13	$	(83	)	$	100,850

	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
	January 31, 2017		January 31, 2016
	(in thousands)
Included in cash equivalents	$	18,328	$	530
Included in marketable securities		82,522		39,837
Total cash equivalents and marketable securities	$	100,850	$	40,367

The contractual maturities of the investments at January 31, 2017 and 2016 were as follows:

	As of
	January 31, 2017		January 31, 2016
	(in thousands)
Due within one year	$	76,992	$	33,449
Due within one to two years		23,858		6,918
Total cash equivalents and marketable securities	$	100,850	$	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 will 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 January 31, 2017 and 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 deposits 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 and are classified within Level 2.

The following tables present the fair value of the financial instruments measured on a recurring basis as of January 31, 2017 and 2016, respectively:

	As of January 31, 2017
	Total		Level 1		Level 2		Level 3
	(in thousands)
Money market funds	$	8,328	$	8,328	$	—	$	—
Demand deposits		10,000		10,000		—		—
Commercial paper		4,784		—		4,784		—
Corporate bonds		42,678		—		42,678		—
Asset-backed securities		11,675		—		11,675		—
U.S. government securities		23,385		—		23,385		—
Total cash equivalents and marketable securities	$	100,850	$	18,328	$	82,522	$	—

	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	$	—