Fair Value Measurements

6 Months Ended

Jan. 31, 2020

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.

Our money market funds are classified within Level I due to the highly liquid nature of these assets and have quoted prices in active markets. Certain of our investments in available-for-sale securities (i.e., U.S. treasury securities, U.S. government agency securities and corporate debt securities) are classified within Level II. The fair value of these securities is priced by using inputs based on non-binding market consensus prices that are primarily corroborated by observable market data or quoted market prices for similar instruments.

Assets that are measured at fair value on a recurring basis consisted of the following as of January 31, 2020:


			Level I		Level II		Level III
	Fair Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Cash equivalents:	(in thousands)

Money market funds	$	42,374	$	42,374	$	—	$	—

U.S. government agency securities	1,500		—		1,500		—


Total	$	43,874	$	42,374	$	1,500	$	—

Short-term investments:
U.S. treasury securities	$	72,168	$	—	$	72,168	$	—
U.S. government agency securities	112,980		—		112,980		—
Corporate debt securities	123,232		—		123,232		—
Total	$	308,380	$	—	$	308,380	$	—

Total cash equivalents and short-term investments	$	352,254	$	42,374	$	309,880	$	—

Assets that are measured at fair value on a recurring basis consisted of the following as of July 31, 2019:


			Level I		Level II		Level III
	Fair Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Cash equivalents:	(in thousands)

Money market funds	$	55,036	$	55,036	$	—	$	—

Short-term investments:
U.S. treasury securities	$	125,281	$	—	$	125,281	$	—
U.S. government agency securities	64,646		—		64,646		—
Corporate debt securities	96,235		—		96,235		—
Total	$	286,162	$	—	$	286,162	$	—

Total cash equivalents and short-term investments	$	341,198	$	55,036	$	286,162	$	—

We did not have transfers between levels of the fair value hierarchy of assets measured at fair value during the periods presented.

- 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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