Fair Value Measurements

12 Months Ended

Apr. 30, 2023

Fair Value MeasurementsFinancial Assets

The following table summarizes assets that are measured at fair value on a recurring basis as of April 30, 2023 (in thousands):


	Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents:
Money market funds	$	194,261	$	—	$	—	$	194,261
U.S. agency securities	—		27,406		—		27,406
Certificates of deposit	—		21,750		—		21,750
Commercial paper	—		60,750		—		60,750
Total included in cash and cash equivalents	194,261		109,906		—		304,167

Marketable Securities:
Certificates of deposit	—		31,645		—		31,645
Commercial paper	—		33,735		—		33,735
U.S. treasury securities	47,627		—		—		47,627
Corporate debt securities	—		118,228		—		118,228
U.S. agency bonds	—		39,806		—		39,806
Total marketable securities	47,627		223,414		—		271,041
Total financial assets	$	241,888	$	333,320	$	—	$	575,208

The following table summarizes assets that are measured at fair value on a recurring basis as of April 30, 2022 (in thousands):


	Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents:
Money market funds	$	559,462	$	—	$	—	$	559,462

For the years ended April 30, 2023, 2022, and 2021, interest income from the Company’s cash and cash equivalents and marketable securities was $17.7 million, $0.2 million, and $0.3 million, respectively, and is included in other income (expense), net in the consolidated statement of operations.

As of April 30, 2023, net unrealized losses on the marketable securities were immaterial. The fluctuations in market interest rates impact the unrealized losses or gains on these securities.

As of April 30, 2023, the contractual maturities of the Company’s available-for-sale debt securities, excluding those securities classified within cash and cash equivalents on the consolidated balance sheet, did not exceed 36 months. The fair values of available-for-sale securities, by remaining contractual maturity, are as follows (in thousands):


	As of April 30, 2023
Due within 1 year	$	168,264
Due between 1 year and 3 years	102,777

Total marketable securities	$	271,041

Financial Liabilities

In July 2021, the Company issued $575.0 million aggregate principal amount of 4.125% Senior Notes due July 15, 2029 (the “Senior Notes”) in a private placement. Based on the trading prices of the Senior Notes, the fair value of the Senior Notes as of April 30, 2023 was approximately $498.1 million. While the Senior Notes are recorded at cost, the fair value of the Senior Notes was determined based on quoted prices in markets that are not active; accordingly, the Senior Notes are categorized as Level 2 for purposes of the fair value measurement hierarchy.

- 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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