Fair Value Measurements

9 Months Ended

Oct. 31, 2020

The following table presents the fair value hierarchy for the Company’s assets measured at fair value on a recurring basis as of October 31, 2020 (in thousands):


	Level 1		Level 2		Total

Cash equivalents:
U.S. government and agency securities	$	—	$	3,778,212	$	3,778,212
Money market funds	54,422		—		54,422

Short-term investments:

U.S. government and agency securities	—		681,018		681,018
Corporate notes and bonds	—		66,946		66,946
Certificates of deposit	—		45,312		45,312
Commercial paper	—		20,847		20,847
Long-term investments:
U.S. government and agency securities	—		301,978		301,978
Corporate notes and bonds	—		45,178		45,178

Asset-backed securities	—		247		247
Total	$	54,422	$	4,939,738	$	4,994,160

The following table presents the fair value hierarchy for the Company’s assets measured at fair value on a recurring basis as of January 31, 2020 (in thousands):


	Level 1		Level 2		Total

Cash equivalents:
U.S. government and agency securities	$	—	$	32,472	$	32,472
Money market funds	21,379		—		21,379
Commercial paper	—		446		446
Short-term investments:
U.S. government securities	—		245,756		245,756
Corporate notes and bonds	—		23,674		23,674
Commercial paper	—		17,008		17,008
Certificates of deposit	—		10,899		10,899
Asset-backed securities	—		9,507		9,507
Long-term investments:
U.S. government and agency securities	—		14,197		14,197
Corporate notes and bonds	—		7,025		7,025
Certificates of deposit	—		1,705		1,705
Asset-backed securities	—		605		605
Total	$	21,379	$	363,294	$	384,673

The Company determines the fair value of its security holdings based on pricing from the Company’s service providers and market prices from industry-standard independent data providers. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs), such as yield curve, volatility factors, credit spreads, default rates, loss severity, current market and contractual prices for the underlying instruments or debt, broker and dealer quotes, as well as other relevant economic measures.

- 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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