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Financial Instruments
 6 Months Ended
Jul. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Financial Instruments Financial Instruments 
Fair Value Measurements
We measure our cash equivalents, marketable securities, and restricted cash at fair value on a recurring basis. We define fair value as the exchange price that would be received from sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We measure our financial assets and liabilities at fair value at each reporting
period using a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value:

•
Level 1 - Observable inputs are unadjusted quoted prices in active markets for identical assets or liabilities;

•
Level 2 - Observable inputs are quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments; and

•
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. These inputs are based on our own assumptions used to measure assets and liabilities at fair value and require significant management judgment or estimation.
We classify our cash equivalents, marketable securities and restricted cash within Level 1 or Level 2 because they are valued using either quoted market prices or inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. Our fixed income available-for-sale securities consist of high quality, investment grade securities from diverse issuers. The valuation techniques used to measure the fair value of our marketable securities were derived from non-binding market consensus prices that are corroborated by observable market data or quoted market prices for similar instruments.
In addition to our cash equivalents, marketable securities and restricted cash, we measure the fair value of our convertible senior notes (the Notes) on a quarterly basis for disclosure purposes. We consider the fair value of the Notes at July 31, 2019 to be a Level 2 measurement due to its limited trading activity. Refer to Note 6 for the carrying amount and estimated fair value of our Notes as of July 31, 2019.
Cash Equivalents, Marketable Securities and Restricted Cash
The following tables summarize our cash equivalents, marketable securities and restricted cash by significant investment categories as of January 31, 2019 and July 31, 2019 (in thousands):
 
 
As of January 31, 2019
 
Amortized
Cost
 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 
Fair
Value
 
Cash Equivalents
 
Marketable Securities
 
Restricted Cash
Level 1
 

 
 

 
 

 
 

 
 

 
 
 
 

Money market accounts
$
—

 
$
—

 
$
—

 
$
43,038

 
$
27,215

 
$
—

 
$
15,823

Level 2
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government treasury notes
315,329

 
208

 
(315
)
 
315,222

 
34,129

 
281,093

 
—

U.S. government agencies
69,114

 
17

 
(154
)
 
68,977

 
9,983

 
58,994

 
—

Corporate debt securities
363,860

 
534

 
(757
)
 
363,637

 
—

 
363,637

 
—

Foreign government bonds
7,965

 
36

 
—

 
8,001

 
—

 
8,001

 
—

Asset-backed securities
37,664

 
105

 
(12
)
 
37,757

 
—

 
37,757

 
—

Total
$
793,932

 
$
900

 
$
(1,238
)
 
$
836,632

 
$
71,327

 
$
749,482

 
$
15,823


 
As of July 31, 2019
 
Amortized
Cost
 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 
Fair
Value
 
Cash Equivalents
 
Marketable
Securities
 
Restricted Cash
Level 1
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market accounts
$
—

 
$
—

 
$
—

 
$
36,659

 
$
21,234

 
$
—

 
$
15,425

Level 2
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government treasury notes
348,463

 
1,454

 
(58
)
 
349,859

 
—

 
349,859

 
—

U.S. government agencies
66,153

 
222

 
(22
)
 
66,353

 
—

 
66,353

 
—

Corporate debt securities
427,362

 
2,685

 
(111
)
 
429,936

 
1,029

 
428,907

 
—

Foreign government bonds
8,480

 
100

 
—

 
8,580

 
—

 
8,580

 
—

Asset-backed securities
59,504

 
329

 
(11
)
 
59,822

 
—

 
59,822

 
—

Total
$
909,962

 
$
4,790

 
$
(202
)
 
$
951,209

 
$
22,263

 
$
913,521

 
$
15,425


 
The amortized cost and estimated fair value of our marketable securities are shown below by contractual maturity (in thousands):
 
 
As of July 31, 2019
 
Amortized Cost
 
Fair Value
Due within one year
$
336,156

 
$
336,736

Due in one to five years
572,777

 
576,785

Total
$
908,933

 
$
913,521


 
Based on our evaluation of available evidence, we concluded that the gross unrealized losses on our investments as of July 31, 2019 were temporary in nature. The following table presents gross unrealized losses and fair values for those investments that were in a continuous unrealized loss position as of July 31, 2019, aggregated by investment category (in thousands):
 
 
Less than 12 months
 
Greater than 12 months
 
Total
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
U.S. government treasury notes
$
27,887

 
$
(30
)
 
$
9,737

 
$
(28
)
 
$
37,624

 
$
(58
)
U.S. government agencies
5,215

 
(7
)
 
9,183

 
(15
)
 
14,398

 
(22
)
Corporate debt securities
38,856

 
(28
)
 
43,245

 
(83
)
 
82,101

 
(111
)
Asset-backed securities
9,399

 
(11
)
 
—

 
—

 
9,399

 
(11
)
Total
$
81,357

 
$
(76
)
 
$
62,165

 
$
(126
)
 
$
143,522

 
$
(202
)

 
Realized gains or losses on sale of marketable securities were not significant for all periods presented.