Fair Value of Financial Assets and Liabilities

3 Months Ended

Jul. 31, 2017

Fair Value of Financial Assets and Liabilities

The following table summarizes the Company’s cash and cash equivalents as of July 31, 2017 and April 30, 2017 (in thousands):



	July 31, 2017		April 30, 2017
Demand deposit accounts	$	39,509	$	46,164
Money market funds	3,660		3,532
Commercial paper	3,847		2,798
Total cash and cash equivalents	$	47,016	$	52,494

The following table summarizes the Company’s short-term investments as of July 31, 2017 (in thousands):



	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale securities:
Certificates of deposit	$	2,650	$	—	$	—		$	2,650
Commercial paper	5,556		—		—			5,556
U.S. government agency debt securities	22,088		—		(38		)	22,050
Corporate debt securities	7,272		—		(6		)	7,266
Total short-term investments	$	37,566	$	—	$	(44	)	$	37,522

The following table summarizes the Company’s short-term investments as of April 30, 2017 (in thousands):



	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale securities:
Certificates of deposit	$	1,930	$	—	$	—		$	1,930
Commercial paper	4,206		—		—			4,206
U.S. Treasury securities	8,705		—		(5		)	8,700
U.S. government agency debt securities	16,733		—		(15		)	16,718
Corporate debt securities	7,144		—		(9		)	7,135
Total short-term investments	$	38,718	$	—	$	(29	)	$	38,689

Realized and unrealized gains and losses on short-term investments were not material for the three months ended July 31, 2017 and 2016. 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 three months ended July 31, 2017 and 2016.

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 condensed consolidated balance sheets.

Contractual maturities of available-for-sale securities at July 31, 2017, were as follows (in thousands):



	Estimated Fair Value
Due in one year or less	36,567
Due in 1-2 years	955
Total investments in debt securities	37,522

The following table summarizes the fair value of the Company’s financial assets and liabilities that were measured on a recurring basis as of July 31, 2017 and April 30, 2017 (in thousands):



	Fair Value Measurements at July 31, 2017								Fair Value Measurements at April 30, 2017
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	3,660	$	—	$	—	$	3,660	$	3,532	$	—	$	—	$	3,532
Commercial paper	—		3,847		—		3,847		—		2,798		—		2,798
Total cash equivalents	3,660		3,847		—		7,507		3,532		2,798		—		6,330
Short-term investments:
Certificates of deposit	—		2,650		—		2,650		—		1,930		—		1,930
Commercial paper	—		5,556		—		5,556		—		4,206		—		4,206
U.S. Treasury securities	—		—		—		—		8,700		—		—		8,700
U.S. government agency securities	22,050		—		—		22,050		16,718		—		—		16,718
Corporate securities	—		7,266		—		7,266		—		7,135		—		7,135
Total short-term investments	22,050		15,472		—		37,522		25,418		13,271		—		38,689
Total assets	$	25,710	$	19,319	$	—	$	45,029	$	28,950	$	16,069	$	—	$	45,019

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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