Fair Value Measurements (Tables)

12 Months Ended

Jan. 31, 2021

Summary of Financial Assets Measured on Recurring Basis

The following table summarizes our financial assets that are measured at fair value on a recurring basis:


	January 31, 2021
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Level 1:
Cash equivalents(1)
Money market funds	$	284,312	$	—	$	—	$	284,312
Level 2:
Available-for-sale securities
Commercial paper	42,048		1		(23)		42,026
Corporate notes and bonds	199,277		375		(67)		199,585
U.S. Treasury securities	4,998		—		—		4,998
U.S. government agency securities	53,052		12		(6)		53,058
Level 2 total	299,375		388		(96)		299,667
Level 3:
Available-for-sale securities
Corporate notes and bonds	500		—		—		500
Total	$	584,187	$	388	$	(96)	$	584,479

	January 31, 2020
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Level 1:
Cash equivalents(1)
Money market funds	$	165,424	$	—	$	—	$	165,424
Level 2:



Available-for-sale securities
Commercial paper	14,919		7		(1)		14,925
Corporate notes and bonds	372,844		891		(31)		373,704
U.S. Treasury securities	90,697		153		(1)		90,849
U.S. government agency securities	175,086		153		(49)		175,190
Level 2 total	653,546		1,204		(82)		654,668
Total	$	818,970	$	1,204	$	(82)	$	820,092

(1)Included in "cash and cash equivalents" in our consolidated balance sheets as of January 31, 2021 and 2020, in addition to cash of $281.7 million and $75.8 million

Available-for-Sale Marketable Securities

The fair value of our available-for-sale securities as of January 31, 2021, by remaining contractual maturities, were as follows (in thousands):


Due in one year or less	$	207,450
Due in one to two years	92,717
	$	300,167

Schedule of Convertible Debt


	January 31,
(in thousands)	2021		2020
0.5% Convertible Senior Notes due in 2023
Aggregate principal amount	$	115,000	$	575,000
Fair value amount	373,928		743,504

0.0% Convertible Senior Notes due in 2024
Aggregate principal amount	$	690,000	$	—
Fair value amount	725,100		—


	January 31,
(in thousands)	2021		2020
2023 Notes (effective interest rate of 5.9%):
Principal	$	575,000	$	575,000
Less: extinguishment or conversion	(460,000)		—
Unpaid principal	115,000		575,000
Less: unamortized debt discount	(15,116)		(101,461)
Less: unamortized transaction costs	(1,224)		(8,218)
Net carrying value of current and noncurrent liability component	$	98,660	$	465,321

Proceeds allocated to the conversion option (debt discount)	$	134,667	$	134,667
Less: extinguishment or conversion	(31,933)		—
Less: transaction costs	(3,336)		(3,336)
Net carrying value of mezzanine and permanent equity component	$	99,398	$	131,331

Excess of if-converted value over principal	$	259,578

2024 Notes (effective interest rate of 3.8%):
Principal	$	690,000
Less: unamortized debt discount	(63,619)
Less: unamortized transaction costs	(11,353)
Net carrying value of noncurrent liability component	$	615,028

Proceeds allocated to the conversion option (debt discount)	$	64,453
Less: transaction costs	(1,185)
Net carrying value of permanent equity component	$	63,268

Excess of if-converted value over principal	$	—

Interest expense recognized related to the Notes was as follows:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Contractual interest expense	$	2,773	$	2,865	$	1,071
Amortization of debt discount	25,828		24,411		8,795
Amortization of transaction costs	2,173		1,978		712
Total	$	30,774	$	29,254	$	10,578

The capped call transactions were as follows:


(in thousands, except per share amounts)	2023 Notes		2024 Notes
Aggregate cost of capped calls	$	67,563	$	31,395
Initial strike price per share (1)	$	71.50	$	420.24
Initial cap price per share (1)	$	110.00	$	525.30
Shares of our common stock covered by the capped calls (1)	8,042		1,642

(1) Subject to adjustments for certain events, such as merger events and tender offers, and anti-dilution adjustments