Fair Value Measurement

3 Months Ended

Apr. 30, 2022

The following tables present the fair value hierarchy of our financial assets measured at fair value on a recurring basis as of April 30, 2022 and January 31, 2022 (in thousands):


	As of April 30, 2022
	Level 1		Level 2		Total
Financial assets:
Money market	$	1,050,171	$	—	$	1,050,171
Total cash equivalents	1,050,171		—		1,050,171
Commercial paper	—		15,359		15,359
Corporate bonds	—		93,610		93,610
Municipal bonds	—		13,144		13,144
Total marketable securities	—		122,113		122,113
Total	$	1,050,171	$	122,113	$	1,172,284


	As of January 31, 2022
	Level 1		Level 2		Total
Financial assets:
Money market	$	1,056,555	$	—	$	1,056,555
Total cash equivalents	1,056,555		—		1,056,555
Commercial paper	—		15,343		15,343
Corporate bonds	—		91,432		91,432
Municipal bonds	—		9,165		9,165
Total marketable securities	—		115,940		115,940
Total	$	1,056,555	$	115,940	$	1,172,495

Our money market funds are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. We classify commercial paper, corporate bonds, and municipal bonds within Level 2 because they are valued using inputs other than quoted prices which are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security which may not be actively traded. None of our financial instruments were classified in the Level 3 category as of April 30, 2022 or January 31, 2022.

- 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.

+ References + Details