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Fair Value Measurements
12 Months Ended
Jan. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company measures its financial assets and liabilities at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes 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, as follows:
Level 1—Valuations based on observable inputs that reflect quoted prices for identical assets or liabilities in active markets.
Level 2—Valuations based on inputs that are directly or indirectly observable in the marketplace.
Level 3—Valuations based on unobservable inputs that are supported by little or no market activity.
The following table presents information about the Company’s financial assets that are required to be measured or disclosed at fair value using the above input categories:
 
As of January 31, 2020
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(in thousands)
Money market funds
$
118,899

 
$

 
$

 
$
118,899

U.S. Treasury securities
2,994

 
34,003

 

 
36,997

Commercial paper

 
26,117

 

 
26,117

Corporate debt securities

 
162,282

 

 
162,282

U.S. Government agency securities

 
4,973

 

 
4,973

Total
$
121,893

 
$
227,375

 
$

 
$
349,268

Included in cash equivalents
 
 
 
 
 
 
$
121,893

Included in investments
 
 
 
 
 
 
$
227,375

 
As of January 31, 2019
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(in thousands)
Money market funds
$
4,417

 
$

 
$

 
$
4,417

Total
$
4,417

 
$

 
$

 
$
4,417

Included in cash equivalents
 
 
 
 
 
 
$
2,023

Included in other assets
 
 
 
 
 
 
$
2,394


The Company’s assets that are measured by management at fair value on a recurring basis are classified within Level 1 or Level 2 of the fair value hierarchy. The Company did not have any transfers into and out of Level 1 or Level 2 during the fiscal years ended January 31, 2020 and 2019.
The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. As of January 31, 2020, the Company’s Level 2 securities were priced by pricing vendors. These pricing vendors utilize observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities. The Company had no Level 2 securities as of January 31, 2019.
The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable, and accounts payable approximate fair value due to their short-term maturities and are excluded from the fair value table above.