Fair Value of Assets and Liabilities

9 Months Ended

Oct. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities

Fair Value of Assets and Liabilities

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.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

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):

	October 31, 2020								January 31, 2020
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	356,737	$	—	$	—	$	356,737	$	92,272	$	—	$	—	$	92,272
Corporate notes and bonds	—		505		—		505		—		—		—		—
Commercial paper	—		30,192		—		30,192		—		17,667		—		17,667
U.S. government and agency securities	—		16,998		—		16,998		—		17,978		—		17,978
Total cash equivalents	356,737		47,695		—		404,432		92,272		35,645		—		127,917
Marketable securities:
Corporate notes and bonds	—		29,802		—		29,802		—		5,674		—		5,674
Commercial paper	—		31,974		—		31,974		—		13,713		—		13,713
U.S. government and agency securities	—		97,643		—		97,643		—		97,446		—		97,446
Total marketable securities	—		159,419		—		159,419		—		116,833		—		116,833
Derivative assets	—		623		—		623		—		683		—		683
Total assets measured at fair value	$	356,737	$	207,737	$	—	$	564,474	$	92,272	$	153,161	$	—	$	245,433
Liabilities:
Derivative liabilities	$	—	$	794	$	—	$	794	$	—	$	342	$	—	$	342
Total liabilities measured at fair value	$	—	$	794	$	—	$	794	$	—	$	342	$	—	$	342

Convertible Senior Notes

In September 2020 the Company issued $575.0 million aggregate principal amount 0.125% convertible senior notes due 2025 as described in Note 9, Debt. As of October 31, 2020 the fair value of these Notes was approximately $591.7 million. The fair value was determined based on the quoted price for the Notes in an over-the-counter market on the last trading day of the reporting period and is considered as Level 2 in the fair value hierarchy.