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Investments and Fair Value Measurements

12 Months Ended

Jan. 31, 2023

Investments, Debt and Equity Securities and Fair Value Disclosures [Abstract]

The carrying amounts of certain of our financial instruments including cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their short-term maturities.

Assets and liabilities recorded at fair value in the consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels that are directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows:

Level 1—Observable inputs, such as quoted prices in active markets for identical assets or liabilities.

Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability.

The following table sets forth the fair value of our financial assets that were measured on a recurring basis:


	January 31,
	2023								2022
(In thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	316,943	$	—	$	—	$	316,943	$	1,056,296	$	—	$	—	$	1,056,296
U.S. government and agency securities	—		1,180,861		—		1,180,861		—		8,024		—		8,024
Corporate bonds	—		53,833		—		53,833		—		131,015		—		131,015
Commercial paper	—		141,359		—		141,359		—		160,230		—		160,230

Reported as:
Assets:
Cash and cash equivalents							$	376,649							$	1,059,296
Investments, current							1,316,347								286,337
Investments, non-current							—								9,932
Total							$	1,692,996							$	1,355,565

Our investments in money market funds are measured at fair value on a recurring basis. These money market funds are actively traded and reported daily through a variety of sources. The fair value of the money market fund investments is classified as Level 1.

The following table presents our investments in available-for-sale debt securities as of January 31, 2023:


(In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Cash and cash equivalents:
U.S. government and agency securities	$	59,732	$	—	$	(26)	$	59,706

Investments, current:
U.S. government and agency securities	1,125,700		1		(4,546)		1,121,155
Corporate bonds	54,173		2		(342)		53,833
Commercial paper	142,061		—		(702)		141,359




Total available-for-sale investments	$	1,381,666	$	3	$	(5,616)	$	1,376,053

The following table presents our investments in available-for-sale debt securities as of January 31, 2022:


(In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Cash and cash equivalents:

Commercial paper	$	3,000	$	—	$	—	$	3,000
Investments, current:

Corporate bonds	131,253		2		(240)		131,015
Commercial paper	155,469		—		(147)		155,322
Investments, non-current:
U.S. government and agency securities	8,036		—		(12)		8,024

Commercial paper	1,914		—		(6)		1,908
Total available-for-sale investments	$	299,672	$	2	$	(405)	$	299,269

The following table presents the fair values and unrealized losses related to our investments in available-for-sale debt securities classified by length of time that the securities have been in a continuous unrealized loss position as of January 31, 2023:


	Less than 12 Months				12 Months or Greater				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

U.S. government and agency securities	$	1,162,226	$	(4,530)	$	7,959	$	(42)	$	1,170,185	$	(4,572)
Corporate bonds	50,258		(328)		1,887		(14)		52,145		(342)
Commercial paper	141,359		(702)		—		—		141,359		(702)
Total	$	1,353,843	$	(5,560)	$	9,846	$	(56)	$	1,363,689	$	(5,616)


	Less than 12 Months				12 Months or Greater				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

U.S. government and agency securities	$	8,024	$	(12)	$	—	$	—	$	8,024	$	(12)
Corporate bonds	130,007		(240)		—		—		130,007		(240)
Commercial paper	145,231		(153)		—		—		145,231		(153)
Total	$	283,262	$	(405)	$	—	$	—	$	283,262	$	(405)

The contractual maturities of our investments as of January 31, 2023 are as follows (in thousands):


Due within one year	$	1,376,053

Total	$	1,376,053

Investments with maturities of less than 12 months from the balance sheet date are classified as current assets, which are available for use to fund current operations. Investments with maturities greater than 12 months from the balance sheet date are classified as non-current assets.

Convertible Senior Notes

Refer to Note 7 “Convertible Senior Notes” for details regarding the fair value of our convertible senior notes.

Equity Investments

Our equity investments are included in “Investments, non-current” on our consolidated balance sheets. The following table provides a summary of our equity investments:


	January 31,
(In thousands)	2023		2022
Equity investments without readily determinable fair values	$	37,994	$	33,744
Equity investments under the equity method of accounting	3,706		2,755
Total	$	41,700	$	36,499

- 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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