Fair Value Measurements

6 Months Ended

Jul. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 2. Fair Value Measurements

We define fair value as the exchange price that would be received from selling an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value:

· Level 1—Observable inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

· Level 2—Observable inputs are quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices which are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments.

· Level 3—Unobservable inputs which are supported by little or no market activity and which are significant to the fair value of the assets or liabilities. These inputs are based on our own assumptions used to measure assets and liabilities at fair value and require significant management judgment or estimation.

We measure marketable securities and restricted cash at fair value on a recurring basis. We classify these assets within Level 1 or Level 2 because they are valued using either quoted market prices for identical assets or 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. As of July 31, 2016, we had no marketable securities in our investment portfolio.

The following tables set forth the fair value of our financial assets measured at fair value on a recurring basis as of July 31 and January 31, 2016, using the above input categories (in thousands):

	July 31, 2016
	Level 1		Level 2		Level 3		Fair Value
Assets
Restricted cash:
Certificates of deposit	$	—	$	26,968	$	—	$	26,968
Money market funds		160		—		—		160
Total assets measured at fair value	$	160	$	26,968	$	—	$	27,128

	January 31, 2016
	Level 1		Level 2		Level 3		Fair Value
Assets
Marketable securities:
Corporate debt securities	$	—	$	5,559	$	—	$	5,559
Asset-backed securities		—		1,820		—		1,820
Restricted cash:
Certificates of deposit		—		26,968		—		26,968
Money market funds		984		—		—		984
Total assets measured at fair value	$	984	$	34,347	$	—	$	35,331