Fair Value Measurements

9 Months Ended

Oct. 31, 2022

The following tables present information about our financial instruments that are measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value:


	As of October 31, 2022
	Fair Value		Level 1		Level 2		Level 3

	(in thousands)
Financial Assets:
Money market funds	$	737,461	$	737,461	$	—	$	—
Treasury bills	24,972		—		24,972		—
Corporate debt securities	557		—		557		—
Agency bonds	3,613		—		3,613		—
Cash equivalents	766,603		737,461		29,142		—
Commercial paper	40,432		—		40,432		—
Agency bonds	626,144		—		626,144		—
Corporate and other debt securities	387,262		—		387,262		—
U.S. government agency securities	2,958,557		—		2,958,557		—
Treasury bills	56,423		—		56,423		—
Marketable securities	4,068,818		—		4,068,818		—


Certificates of deposit included in other assets, noncurrent	246		—		246		—
Publicly held equity securities included in strategic investments	132,405		132,405		—		—
Privately held debt securities included in strategic investments	14,284		—		—		14,284
Total financial assets	$	4,982,356	$	869,866	$	4,098,206	$	14,284


	As of January 31, 2022
	Fair Value		Level 1		Level 2		Level 3

	(in thousands)
Financial Assets:
Money market funds	$	688,722	$	688,722	$	—	$	—
Treasury bills	107,496		—		107,496		—
Corporate debt securities	749		—		749		—

Cash equivalents	796,967		688,722		108,245		—
Commercial paper	28,723		—		28,723		—
Agency bonds	629,609		—		629,609		—
Corporate and other debt securities	280,927		—		280,927		—
U.S. government agency securities	3,027,509		—		3,027,509		—
Treasury bills	389,678		—		389,678		—
Marketable securities	4,356,446		—		4,356,446		—


Certificates of deposit included in other assets, noncurrent	297		—		297		—
Publicly held equity securities included in strategic investments	168,784		168,784		—		—
Privately held debt securities included in strategic investments	14,231		—		—		14,231
Total financial assets	$	5,336,725	$	857,506	$	4,464,988	$	14,231

We classify our highly liquid money market funds and publicly held equity securities within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. We classify our commercial paper, agency bonds, corporate and other debt securities, U.S. government agency securities, treasury bills, and certificates of deposit within Level 2 because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security, which may not be actively traded. We classify our privately held debt securities as Level 3 due to the lack of relevant observable market data over fair value inputs, such as the probability weighting of the various scenarios that can impact settlement of the arrangement.

- 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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