Short-Term Investments

6 Months Ended

Jul. 31, 2014

Short-Term Investments

Note 2. Short-Term Investments

We classify short-term investments as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. All short-term investments are recorded at estimated fair value. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive income, a component of stockholders’ equity. We evaluate our investments to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in other income (expense), net, in the condensed consolidated statements of comprehensive income. Interest, amortization of premiums, and accretion of discount on all short-term investments classified as available for sale are also included as a component of other income (expense), net, in the condensed consolidated statements of comprehensive income.

At July 31, 2014, short-term investments consisted of the following (in thousands):

			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Available-for-sale securities:
Asset-backed securities	$	3,700	$	1	$	(6	)	$	3,695
Commercial paper		4,999		—		—			4,999
Corporate notes and bonds		33,525		12		(21	)		33,516
U.S. agency obligations		136,015		20		(52	)		135,983
U.S. treasury securities		31,897		8		(12	)		31,893
Total available-for-sale securities	$	210,136	$	41	$	(91	)	$	210,086

At January 31, 2014, short-term investments consisted of the following (in thousands):

			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Available-for-sale securities:
Corporate notes and bonds	$	10,499	$	9	$	(1	)	$	10,507
U.S. agency obligations		15,111		7	$	—			15,118
Total available-for-sale securities	$	25,610	$	16	$	(1	)	$	25,625

We may sell our short-term investments at any time, without significant penalty, for use in current operations or for other purposes, even if they have not yet reached maturity. As a result, we classify our investments, including securities with maturities beyond 12 months as current assets in the accompanying condensed consolidated balance sheets.

The following table summarizes the estimated fair value of our short-term investments, designated as available-for-sale and classified by the contractual maturity date of the securities as of the dates shown (in thousands):

	July 31,		January 31,
	2014		2014
Due in one year or less	$	81,130	$	17,667
Due in greater than one year		128,956		7,958
Total	$	210,086	$	25,625

We have certain available-for-sale securities in a gross unrealized loss position, all of which have been in such position for less than 12 months. We review our debt securities classified as short-term investments on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. We consider factors such as the length of time and extent to which the market value has been less than the cost, the financial position and near-term prospects of the issuer and our intent to sell, or whether it is more likely than not we will be required to sell the investment before recovery of the investment’s amortized-cost basis. If we determine that an other-than-temporary decline exists in one of these securities, the respective investment would be written down to fair value. For debt securities, the portion of the write-down related to credit loss would be recognized to other income, net in our condensed consolidated statements of comprehensive income. Any portion not related to credit loss would be included in accumulated other comprehensive income. There were no impairments considered other-than-temporary as of July 31, 2014 and January 31, 2014.

The following table shows the fair values and the gross unrealized losses of these available-for-sale securities aggregated by investment category as of July 31, 2014 (in thousands):

			Gross
	Fair		Unrealized
	Value		Losses
Asset-backed securities	$	2,293	$	(6	)
Corporate notes and bonds		18,040		(21	)
U.S. agency obligations		89,105		(52	)
U.S. treasury securities		15,688		(12	)

The following table shows the fair values and the gross unrealized losses of these available-for-sale securities aggregated by investment category as of January 31, 2014 (in thousands):

			Gross
	Fair		Unrealized
	Value		Losses
Corporate notes and bonds	$	1,403	$	(1	)