Fair Value of Financial Assets and Liabilities

12 Months Ended

Apr. 30, 2016

Fair Value of Financial Assets and Liabilities

The following table summarizes the Company’s cash and cash equivalents as of April 30, 2016 and April 30, 2015 (in thousands):



	April 30, 2016		April 30, 2015
Demand deposit accounts	$	38,692	$	49,977
Money market funds	922		2,831
Municipal debt securities	—		102
Commercial paper	4,349		875
Corporate debt securities	—		256
Total cash and cash equivalents	$	43,963	$	54,041

The following table summarizes the Company’s short-term investments as of April 30, 2016 (in thousands):



	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale securities:
Certificates of deposit	$	7,090	$	—	$	(1	)	$	7,089
Commercial paper	4,043		—		—			4,043
U.S. Treasury securities	8,764		—		—			8,764
U.S. government agency debt securities	24,841		4		(9		)	24,836
Corporate debt securities	5,954		1		(5		)	5,950
Total short-term investments	$	50,692	$	5	$	(15	)	$	50,682

The following table summarizes the Company’s short-term investments as of April 30, 2015 (in thousands):



	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale securities:
Certificates of deposit	$	4,000	$	4	$	—		$	4,004
Municipal debt securities	4,564		17		(16		)	4,565
Commercial paper	6,269		4		—			6,273
U.S. Treasury securities	11,814		—		(11		)	11,803
U.S. government agency debt securities	17,007		1		(3		)	17,005
Corporate debt securities	9,104		4		(28		)	9,080
Total short-term investments	$	52,758	$	30	$	(58	)	$	52,730

Realized and unrealized gains and losses on short-term investments were not material for the fiscal years ended April 30, 2016, 2015 and 2014. An impairment charge is recorded in the consolidated statements of operations for declines in fair value below the cost of an individual investment that are deemed to be other-than-temporary. The Company assesses whether a decline in value is temporary based on the length of time that the fair market value has been below cost, the severity of the decline, as well as the intent and ability to hold, or plans to sell, the investment. There have been no impairment charges recognized related to short-term investments for the fiscal years ended April 30, 2016 and 2015.

Contractual maturities of available-for-sale securities at April 30, 2016, were as follows (in thousands):



	Estimated Fair Value
Due in one year or less	$	48,953
Due in 1-2 years	1,729
Total investments in debt securities	$	50,682

Actual maturities may differ from contractual maturities because some borrowers have the right to call or prepay obligations with or without call or prepayment penalties. We may sell these securities at any time for use in current operations or for other purposes, such as consideration for acquisitions, even if they have not yet reached maturity. As a result, we classify our investments, including securities with maturities beyond twelve months as current assets in the accompanying consolidated balance sheets.

The following table summarizes the fair value of the Company’s financial assets and liabilities that were measured on a recurring basis as of April 30, 2016 and April 30, 2015 (in thousands):



	Fair Value Measurements at April 30, 2016								Fair Value Measurements at April 30, 2015
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	922	$	—	$	—	$	922	$	2,831	$	—	$	—	$	2,831
Municipal bonds	—		—		—		—		—		102		—		102
Commercial paper	—		4,349		—		4,349		—		875		—		875
Corporate securities	—		—		—		—		—		256		—		256
Total cash equivalents	922		4,349		—		5,271		2,831		1,233		—		4,064
Short-term investments:
Certificates of deposit	—		7,089		—		7,089		—		4,004		—		4,004
Municipal bonds	—		—		—		—		—		4,565		—		4,565
Commercial paper	—		4,043		—		4,043		—		6,273		—		6,273
U.S. Treasury securities	8,764		—		—		8,764		11,803		—		—		11,803
U.S. government agency securities	24,836		—		—		24,836		17,005		—		—		17,005
Corporate securities	—		5,950		—		5,950		—		9,080		—		9,080
Total short-term investments	33,600		17,082		—		50,682		28,808		23,922		—		52,730
Total assets	$	34,522	$	21,431	$	—	$	55,953	$	31,639	$	25,155	$	—	$	56,794

The Company measures certain assets, including property and equipment, goodwill and intangible assets, at fair value on a non-recurring basis. These assets are recognized at fair value when they are deemed to be impaired. The Company evaluates transfers between levels at the end of the fiscal year and assumes that any identified transfers are deemed to have occurred at the end of the reporting year. There were no transfers between levels in any of the periods presented.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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