Cash and Cash Equivalents, Investments and Fair Value Measurements

3 Months Ended

Apr. 30, 2022

Cash and Cash Equivalents, Investments and Fair Value Measurements

CASH AND CASH EQUIVALENTS, INVESTMENTS, AND FAIR VALUE MEASUREMENTS

The following table summarizes information about our cash and cash equivalents, and short-term investments by investment category (in thousands):


	As of April 30, 2022
	Fair Value Level	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash		$	26,991	$	—	$	—	$	26,991
Money market funds	Level 1	592,161		—		—		592,161
Commercial paper	Level 2	74,969		—		(9)		74,960
U.S. Treasury securities	Level 1	71,989		—		—		71,989
Total cash and cash equivalents		$	766,110	$	—	$	(9)	$	766,101
Short-term investments:
Certificates of deposit	Level 2	$	357	$	—	$	—	$	357
Commercial paper	Level 2	367,072		—		(498)		366,574
Corporate notes and bonds	Level 2	47,333		—		(200)		47,133
U.S. Treasury securities	Level 1	435,879		1		(518)		435,362
U.S. agency securities	Level 2	2,005		—		(13)		1,992
Total short-term investments		$	852,646	$	1	$	(1,229)	$	851,418

As of April 30, 2022, we determined that the declines in the market value of our investment portfolio were not driven by credit related factors. During the three months ended April 30, 2022 and 2021, we did not recognize any losses on our investments due to credit related factors. As of January 31, 2022, the aggregate fair value of our cash equivalents and short-term investments approximated amortized cost and, as such, there were no unrealized gains or losses, either individually or in the aggregate.

As of April 30, 2022 and January 31, 2022, our cash and cash equivalents had contractual maturities of three months or less and short-term investments had contractual maturities within one year of each respective date.

The following table summarizes the respective fair value and the classification by level within the fair value hierarchy (in thousands):


	As of January 31, 2022
	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents:
Money market funds	$	1,641,642	$	—	$	—	$	1,641,642
Short-term investments:
Certificates of deposit	—		374		—		374
Total assets measured and recorded at fair value	$	1,641,642	$	374	$	—	$	1,642,016

There were no transfers between the levels of the fair value hierarchy during the three months ended April 30, 2022 and 2021.

- 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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