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 July 31, 2014 and April 30, 2014 (in thousands):


	July 31, 2014		April 30, 2014
Demand deposit accounts	$	21,674	$	24,721
Money market funds		1,442		6,971
Certificates of deposit		—		242
Municipal bonds		887		—
U.S. Treasury bills		701		—

Total cash and cash equivalents	$	24,704	$	31,934

The following table summarizes the Company’s short-term investments as of July 31, 2014 (in thousands):


	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale securities:
Certificates of deposit	$	7,230	$	1	$	(7	)	$	7,224
Municipal bonds		3,377		31		(1	)		3,407
Commercial paper		5,997		—		(1	)		5,996
U.S. Treasury notes		51,258		14		(1	)		51,271

Total short-term investments	$	67,862	$	46	$	(10	)	$	67,898

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

All short-term investments had original maturity dates of less than 12 months at July 31, 2014 and April 30, 2014. Realized gains and losses from the sale of short-term investments were not material for the three months ended July 31, 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 July 31, 2014 and April 30, 2014 (in thousands):


	Fair Value Measurements at July 31, 2014								Fair Value Measurements at April 30, 2014
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	1,442	$	—	$	—	$	1,442	$	6,971	$	—	$	—	$	6,971
Certificates of deposit		—		—		—		—		242		—		—		242
Municipal bonds		—		887		—		887		—		—		—		—
U.S. Treasury bills		701		—		—		701		—		—		—		—

Total cash equivalents		2,143		887		—		3,030		7,213		—		—		7,213

Restricted cash		500		—		—		500		604		—		—		604
Short-term investments:
Certificates of deposit		—		7,224		—		7,224		—		7,474		—		7,474
Municipal bonds		—		3,407		—		3,407		—		—		—		—
Commercial paper		—		5,996		—		5,996		—		—		—		—
U.S. Treasury notes		51,271		—		—		51,271		33,226		—		—		33,226

Total short-term investments		51,271		16,627		—		67,898		33,226		7,474		—		40,700

Total assets	$	53,914	$	17,514	$	—	$	71,428	$	41,043	$	7,474	$	—	$	48,517

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.

- 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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