Financial Instruments and Fair Value

12 Months Ended

Jan. 31, 2019

Investments All Other Investments [Abstract]

3. Financial Instruments and Fair Value

The Company invests a portion of its cash in debt securities that are denominated in United States dollars. In fiscal year 2019, the Company added an additional $100.0 million of capital in debt security investments. The investment portfolio consists of money market funds, certificates of deposit, 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, 2019
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Money market funds	$	8,914	$	—	$	—		$	8,914
Certificates of Deposit		7,012		—		—			7,012
Commercial paper		68,233		—		—			68,233
Corporate bonds		87,250		170		(60	)		87,360
Asset-backed securities		11,607		3		(6	)		11,604
U.S. government securities		21,993		3		(13	)		21,983
Total cash equivalents and marketable debt securities	$	205,009	$	176	$	(79	)	$	205,106

	As of January 31, 2018
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Money market funds	$	13,788	$	—	$	—		$	13,788
Commercial paper		5,480		—		—			5,480
Corporate bonds		53,175		—		(196	)		52,979
Asset-backed securities		11,048		—		(44	)		11,004
U.S. government securities		18,495		—		(39	)		18,456
Total cash equivalents and marketable debt securities	$	101,986	$	—	$	(279	)	$	101,707

	As of
	January 31, 2019		January 31, 2018
	(in thousands)
Included in cash equivalents	$	40,245	$	13,788
Included in marketable debt securities		164,861		87,919
Total cash equivalents and marketable debt securities	$	205,106	$	101,707

The contractual maturities of the investments at January 31, 2019 and 2018 were as follows:

	As of
	January 31, 2019		January 31, 2018
	(in thousands)
Due within one year	$	151,991	$	63,476
Due within one to three years		53,115		38,231
Total cash equivalents and marketable debt securities	$	205,106	$	101,707

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, 2019 and 2018, 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 certificates of 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 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, 2019 and 2018, respectively:

	As of January 31, 2019
	Total		Level 1		Level 2		Level 3
	(in thousands)
Money market funds	$	8,914	$	8,914	$	—	$	—
Certificates of Deposit		7,012		7,012
Commercial paper		68,233		—		68,233		—
Corporate bonds		87,360		—		87,360		—
Asset-backed securities		11,604		—		11,604		—
U.S. government securities		21,983		—		21,983		—
Total cash equivalents and marketable debt securities	$	205,106	$	15,926	$	189,180	$	—

	As of January 31, 2018
	Total		Level 1		Level 2		Level 3
	(in thousands)
Money market funds	$	13,788	$	13,788	$	—	$	—
Commercial paper		5,480		—		5,480		—
Corporate bonds		52,979		—		52,979		—
Asset-backed securities		11,004		—		11,004		—
U.S. government securities		18,456		—		18,456		—
Total cash equivalents and marketable debt securities	$	101,707	$	13,788	$	87,919	$	—