Fair Value Measurements

9 Months Ended

Oct. 31, 2019

Note 3: Fair Value Measurements

The Company records its financial assets and liabilities at fair value. The Company estimates and categorizes fair value by applying the following hierarchy:

Level 1:

Quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2:

Observable prices based on inputs not quoted in active markets, but are corroborated by market data.

Level 3:

Unobservable inputs that are supported by little or no market activity.

The Company’s financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy were as follows (in thousands):

	Balance as of October 31, 2019						Balance as of January 31, 2019
	Level 1		Level 2		Total		Level 1		Level 2		Total
Assets:
Cash and cash equivalents:
Money market funds	$	5,832	$	—	$	5,832	$	5,951	$	—	$	5,951
Commercial paper		—		499		499		—		5,429		5,429
Total cash equivalents	$	5,832	$	499	$	6,331	$	5,951	$	5,429	$	11,380
Cash						5,357						3,990
Total cash and cash equivalents					$	11,688					$	15,370

Short-term investments:
U.S. treasury securities	$	4,477	$	—	$	4,477	$	11,088	$	—	$	11,088
Corporate debt securities		—		3,503		3,503		—		4,735		4,735
Commercial paper		894		5,557		6,451		—		8,253		8,253
U.S. agency securities		—		—		—		—		990		990
Asset-backed securities		—		1,355		1,355		—		2,187		2,187
Total short-term investments	$	5,371	$	10,415	$	15,786	$	11,088	$	16,165	$	27,253

The Company classifies its cash equivalents and short-term investments within Level 1 or Level 2 because it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. The amortized cost of cash equivalents and short-term investments approximated their fair value and there were no material realized or unrealized gains or losses, either individually or in the aggregate, and no other-than-temporary impairments. As of October 31, 2019 and January 31, 2019, the Company had no material Level 3 assets or liabilities and there have been no transfers between levels.

- 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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