Fair Value of Assets and Liabilities

3 Months Ended

Apr. 30, 2020

The Company estimates the fair value of cash equivalents, marketable securities and foreign currency derivative contracts by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

Level 1: Quoted prices in active markets for identical assets or liabilities.

Level 2: Observable inputs such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets and liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data or other means.

Level 3: Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. The inputs require significant management judgment or estimation.

All of the Company's cash equivalents, marketable securities and foreign currency derivative contracts are classified within Level 1 or Level 2 because the Company's cash equivalents, marketable securities and foreign currency derivative contracts are valued using quoted market prices or alternative pricing sources and models utilizing observable market inputs.

The following tables represents the fair value of assets and liabilities measured at fair value on a recurring basis using the above hierarchy (in thousands):


	April 30, 2020														January 31, 2020
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	154,531	$	—	$	—	$	154,531	$	92,272	$	—	$	—	$	92,272
Commercial paper	—		18,080		—		18,080		—		17,667		—		17,667
U.S. government and agency securities	—		10,000		—		10,000		—		17,978		—		17,978
Total cash equivalents	154,531		28,080		—		182,611		92,272		35,645		—		127,917
Marketable securities:
Corporate notes and bonds	—		4,777		—		4,777		—		5,675		—		5,675
Commercial paper	—		6,750		—		6,750		—		13,712		—		13,712
U.S. government and agency securities	—		51,305		—		51,305		—		97,446		—		97,446
Total marketable securities	—		62,832		—		62,832		—		116,833		—		116,833
Derivative assets	—		1,648		—		1,648		—		683		—		683
Total assets measured at fair value	$	154,531	$	92,560	$	—	$	247,091	$	92,272	$	153,161	$	—	$	245,433
Liabilities:
Derivative liabilities	$	—	$	1,353	$	—	$	1,353	$	—	$	342	$	—	$	342
Total liabilities measured at fair value	$	—	$	1,353	$	—	$	1,353	$	—	$	342	$	—	$	342

- 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.

+ References + Details