Fair Value of Financial Assets and Liabilities

4. Fair Value of Financial Assets and Liabilities

The following table summarizes the Company’s cash and cash equivalents as of April 30, 2014 and 2013 (in thousands):


	April 30,
	2014		2013
Demand deposit accounts	$	24,721	$	16,522
Money market funds		6,971		1,314
Certificates of deposit		242		—
U.S. Treasury bills		—		7,209

Total cash and cash equivalents	$	31,934	$	25,045

The following table summarizes the Company’s short-term investments as of April 30, 2014 (in thousands):


	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale securities:
Certificates of deposit	$	7,466	$	17	$	(9	)	$	7,474
U.S. Treasury notes		33,226		2		(2	)		33,226

Total short-term investments	$	40,692	$	19	$	(11	)	$	40,700

The following table summarizes the Company’s short-term investments as of April 30, 2013 (in thousands):


	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale securities:
Certificates of deposit	$	9,230	$	9	$	(4	)	$	9,235
U.S. Treasury notes		61,140		15		(100	)		61,055

Total short-term investments	$	70,370	$	24	$	(104	)	$	70,290

All short-term investments had original maturity dates of less than 12 months at April 30, 2014 and 2013. Realized gains and losses from the sale of short-term investments were not material for the years ended April 30, 2014 and 2013.

The following table summarizes the fair value of the Company’s financial assets and liabilities that were measured on a recurring basis as of April 30, 2014 and 2013 (in thousands):


	Fair Value Measurements at April 30, 2014								Fair Value Measurements at April 30, 2013
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	6,971	$	—	$	—	$	6,971	$	1,314	$	—	$	—	$	1,314
Certificates of deposit		242		—		—		242		—		—		—		—
U.S. Treasury bills		—		—		—		—		7,209		—		—		7,209

Total cash equivalents		7,213		—		—		7,213		8,523		—		—		8,523

Restricted cash		604		—		—		604		604		—		—		604
Short-term investments:
Certificates of deposit		—		7,474		—		7,474		—		9,235		—		9,235
U.S. Treasury notes		33,226		—		—		33,226		61,055		—		—		61,055

Total short-term investments		33,226		7,474		—		40,700		61,055		9,235		—		70,290

Total assets	$	41,043	$	7,474	$	—	$	48,517	$	70,182	$	9,235	$	—	$	79,417

Liabilities:
Contingent consideration (see Note 6)	$	—	$	—	$	—	$	—	$	—	$	—	$	3,270	$	3,270

Total liabilities	$	—	$	—	$	—	$	—	$	—	$	—	$	3,270	$	3,270

The Company measures certain assets, including property and equipment, goodwill and intangible assets, at fair value on a non-recurring basis. These assets are recognized at fair value when they are deemed to be other-than-temporarily impaired. The Company evaluates transfers between levels at the end of the fiscal year and assumes that any identified transfers are deemed to have occurred at the end of the reporting year. There were no transfers between levels in any of the periods presented.

In fiscal year 2013 and prior periods, the Company had classified all of its cash equivalents, restricted cash and short-term investments using Level 1 inputs. The Company has determined that the pricing methods for certain of these investments use significant other observable inputs. Accordingly, such investments held in prior periods have been presented as Level 2. The reclassification had no impact on the fair value of investments in any of 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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