Fair Value Measurements

12 Months Ended

Jul. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

We disclose and recognize the fair value of our assets and liabilities using a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes three levels of the fair value hierarchy as follows:

Level 1: Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;

Level 2: Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities 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 related assets or liabilities; and

Level 3: Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.

Our financial instruments consist of cash and cash equivalents, short-term and long-term investments, accounts payable, and accrued liabilities. At July 31, 2021, and August 1, 2020, the carrying values of cash and cash equivalents, accounts payable, and accrued liabilities approximated fair value due to their short-term maturities.

The following table sets forth the amortized cost, gross unrealized gains, gross unrealized losses and fair values of our short-term and long-term investments accounted for as available-for-sale securities as of July 31, 2021, and August 1, 2020:     

	July 31, 2021								August 1, 2020
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Financial Assets:
Investments:
U.S. Treasury securities	$	42,009	$	35	$	—	$	42,044	$	67,335	$	516	$	(1)	$	67,850
Certificates of deposit	1,500		—		—		1,500		6,150		—		—		6,150
Commercial paper	10,192		—		—		10,192		35,331		—		—		35,331
Asset-backed securities	10,393		18		(9)		10,402		44,854		410		(4)		45,260
Corporate bonds	96,347		103		(7)		96,443		82,821		723		(1)		83,543
Total	$	160,441	$	156	$	(16)	$	160,581	$	236,491	$	1,649	$	(6)	$	238,134

The following table sets forth the fair value of available-for-sale securities by contractual maturity as of July 31, 2021, and August 1, 2020:

	July 31, 2021								August 1, 2020
(in thousands)	One Year or Less		Over One Year Through Five Years		Over Five Years		Total		One Year or Less		Over One Year Through Five Years		Over Five Years		Total
Financial Assets:
Investments:
U.S. Treasury securities	$	41,633	$	411	$	—	$	42,044	$	38,794	$	29,056	$	—	$	67,850
Certificates of deposit	1,500		—		—		1,500		6,150		—		—		6,150
Commercial paper	10,192		—		—		10,192		35,331		—		—		35,331
Asset-backed securities	29		10,373		—		10,402		6,657		38,603		—		45,260
Corporate bonds	48,192		48,251		—		96,443		56,105		27,438		—		83,543
Total	$	101,546	$	59,035	$	—	$	160,581	$	143,037	$	95,097	$	—	$	238,134

The following table sets forth our cash equivalents, and short-term and long-term investments accounted for as available-for-sale securities that were measured at fair value on a recurring basis based on the fair value hierarchy as of July 31, 2021, and August 1, 2020:

	July 31, 2021								August 1, 2020
(in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash equivalents:
Money market funds	$	10,728	$	—	$	—	$	10,728	$	2,394	$	—	$	—	$	2,394
Commercial paper	—		—		—		—		—		—		—		—
Investments:
U.S. Treasury securities	42,044		—		—		42,044		67,850		—		—		67,850
Certificates of deposit	—		1,500		—		1,500		—		6,150		—		6,150
Commercial paper	—		10,192		—		10,192		—		35,331		—		35,331
Asset-backed securities	—		10,402		—		10,402		—		45,260		—		45,260
Corporate bonds	—		96,443		—		96,443		—		83,543		—		83,543
Total	$	52,772	$	118,537	$	—	$	171,309	$	70,244	$	170,284	$	—	$	240,528

There were no transfers of financial assets or liabilities into or out of Level 1, Level 2, or Level 3 for the fiscal years ended July 31, 2021, and August 1, 2020.