2. Financial Instruments and Fair Value

The Company invests a portion of its cash in debt securities that are denominated in U.S. dollars. The investment portfolio consists of money market funds, 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 condensed consolidated balance sheets as follows:

	As of July 31, 2017
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Money market funds	$	10,232	$	—	$	—		$	10,232
Commercial paper		6,980		—		—			6,980
Corporate bonds		48,758		3		(33	)		48,728
Asset-backed securities		13,024		—		(7	)		13,017
U.S. government securities		22,397		—		(45	)		22,352
Total cash equivalents and marketable securities	$	101,391	$	3	$	(85	)	$	101,309

	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
	July 31, 2017		January 31, 2017
	(in thousands)
Included in cash equivalents	$	10,232	$	18,328
Included in marketable securities		91,077		82,522
Total cash equivalents and marketable securities	$	101,309	$	100,850

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

	As of
	July 31, 2017		January 31, 2017
	(in thousands)
Due within one year	$	86,791	$	76,992
Due within one to two years		14,518		23,858
Total cash equivalents and marketable securities	$	101,309	$	100,850

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, 2017 and January 31, 2017, 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 table presents the fair value of the financial instruments measured on a recurring basis as of July 31, 2017 and January 31, 2017:

	As of July 31, 2017
	Total		Level 1		Level 2		Level 3
	(in thousands)
Money market funds	$	10,232	$	10,232	$	—	$	—
Commercial paper		6,980		—		6,980		—
Corporate bonds		48,728		—		48,728		—
Asset-backed securities		13,017		—		13,017		—
U.S. government securities		22,352		—		22,352		—
Total cash equivalents and marketable securities	$	101,309	$	10,232	$	91,077	$	—

	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	$	—