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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
☒Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended October 31, 2022
OR
☐Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For transition period from                     to                     
Commission File Number: 001-35680
WORKDAY, INC.
(Exact name of registrant as specified in its charter) 
Delaware20-2480422
(State or other jurisdiction of
incorporation or organization)		 (I.R.S Employer
Identification No.)
6110 Stoneridge Mall Road
Pleasanton, California 94588
(Address of principal executive offices, including zip code)
(925) 951-9000
(Registrant’s telephone number, including area code) 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, par value $0.001WDAYThe Nasdaq Stock Market LLC
(Nasdaq Global Select Market)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes  ☒ No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes  ☒  No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐  No  ☒
As of November 23, 2022, there were approximately 202 million shares of the registrant’s Class A common stock, net of treasury stock, and 55 million shares of the registrant’s Class B common stock outstanding.

Workday, Inc.
  Page No.
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Workday, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
October 31, 2022January 31, 2022
Assets
Current assets:
Cash and cash equivalents$1,575,955 $1,534,273 
Marketable securities3,916,130 2,109,888 
Trade and other receivables, net1,040,468 1,242,545 
Deferred costs171,100 152,957 
Prepaid expenses and other current assets266,622 174,402 
Total current assets6,970,275 5,214,065 
Property and equipment, net1,219,127 1,123,075 
Operating lease right-of-use assets268,110 247,808 
Deferred costs, noncurrent359,624 341,259 
Acquisition-related intangible assets, net326,670 391,002 
Goodwill2,840,044 2,840,044 
Other assets405,937 341,252 
Total assets$12,389,787 $10,498,505 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$75,803 $55,487 
Accrued expenses and other current liabilities334,961 195,590 
Accrued compensation406,799 402,885 
Unearned revenue2,815,599 3,110,947 
Operating lease liabilities90,237 80,503 
Debt, current— 1,222,443 
Total current liabilities3,723,399 5,067,855 
Debt, noncurrent2,974,979 617,354 
Unearned revenue, noncurrent63,736 71,533 
Operating lease liabilities, noncurrent196,078 182,456 
Other liabilities22,487 24,225 
Total liabilities6,980,679 5,963,423 
Stockholders’ equity:
Common stock257 251 
Additional paid-in capital8,400,756 7,284,174 
Treasury stock(110,382)(12,467)
Accumulated other comprehensive income (loss)104,114 7,709 
Accumulated deficit(2,985,637)(2,744,585)
Total stockholders’ equity5,409,108 4,535,082 
Total liabilities and stockholders’ equity$12,389,787 $10,498,505 
See Notes to Condensed Consolidated Financial Statements
3
Workday, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended October 31, Nine Months Ended October 31,
2022202120222021
Revenues:
Subscription services$1,432,393 $1,171,517 $4,071,804 $3,317,140 
Professional services166,710 155,746 497,754 445,517 
Total revenues1,599,103 1,327,263 4,569,558 3,762,657 
Costs and expenses (1):
Costs of subscription services259,397 200,700 737,301 575,646 
Costs of professional services176,396 159,024 524,398 462,652 
Product development565,727 455,615 1,655,071 1,341,482 
Sales and marketing470,196 366,323 1,358,198 1,050,974 
General and administrative153,708 121,656 427,832 347,391 
Total costs and expenses1,625,424 1,303,318 4,702,800 3,778,145 
Operating income (loss)(26,321)23,945 (133,242)(15,488)
Other income (expense), net4,163 21,557 (48,789)115,491 
Income (loss) before provision for (benefit from) income taxes(22,158)45,502 (182,031)100,003 
Provision for (benefit from) income taxes52,563 2,090 59,021 (2,623)
Net income (loss)$(74,721)$43,412 $(241,052)$102,626 
Net income (loss) per share, basic$(0.29)$0.17 $(0.95)$0.42 
Net income (loss) per share, diluted$(0.29)$0.17 $(0.95)$0.40 
Weighted-average shares used to compute net income (loss) per share, basic255,753 248,468 253,975 246,348 
Weighted-average shares used to compute net income (loss) per share, diluted255,753 254,760 253,975 253,917 
(1) Costs and expenses include share-based compensation expenses as follows:
Three Months Ended October 31, Nine Months Ended October 31,
2022202120222021
Costs of subscription services$25,598 $21,340 $76,918 $62,478 
Costs of professional services26,577 29,105 79,999 83,331 
Product development149,279 135,591 449,764 395,345 
Sales and marketing61,186 55,645 180,233 158,121 
General and administrative51,556 39,437 146,795 111,197 
Total share-based compensation expenses$314,196 $281,118 $933,709 $810,472 
See Notes to Condensed Consolidated Financial Statements
4
Workday, Inc.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(in thousands)
(unaudited)
Three Months Ended October 31, Nine Months Ended October 31,
2022202120222021
Net income (loss)$(74,721)$43,412 $(241,052)$102,626 
Other comprehensive income (loss):
Net change in foreign currency translation adjustment(3,098)(361)(6,005)(1,362)
Net change in unrealized gains (losses) on available-for-sale debt securities(13,232)(1,505)(23,513)(2,611)
Net change in unrealized gains (losses) on cash flow hedges57,483 25,389 125,923 38,316 
Other comprehensive income (loss)41,153 23,523 96,405 34,343 
Comprehensive income (loss)$(33,568)$66,935 $(144,647)$136,969 
See Notes to Condensed Consolidated Financial Statements
5
Workday, Inc.
Condensed Consolidated Statements of Stockholders’ Equity
(in thousands)
(unaudited)
Three Months Ended October 31, Nine Months Ended October 31,
2022202120222021
Common stock:
Balance, beginning of period$255 $248 $251 $242 
Issuance of common stock under employee equity plans, net of shares withheld for employee taxes1 1 5 7 
Settlement of convertible senior notes1 — 1 — 
Balance, end of period257 249 257 249 
Additional paid-in capital:
Balance, beginning of period7,988,096 6,639,067 7,284,174 6,254,936 
Issuance of common stock under employee equity plans, net of shares withheld for employee taxes709 1,893 84,997 76,374 
Share-based compensation314,196 278,995 933,709 808,299 
Exercise of convertible senior notes hedges97,794 8 97,916 58 
Settlement of convertible senior notes(39)— (40)(2)
Cumulative effect of accounting changes— — — (219,702)
Balance, end of period8,400,756 6,919,963 8,400,756 6,919,963 
Treasury stock:
Balance, beginning of period(12,588)(12,431)(12,467)(12,384)
Exercise of convertible senior notes hedges(97,794)(6)(97,915)(53)
Balance, end of period(110,382)(12,437)(110,382)(12,437)
Accumulated other comprehensive income (loss):
Balance, beginning of period62,961 (44,150)7,709 (54,970)
Other comprehensive income (loss)41,153 23,523 96,405 34,343 
Balance, end of period104,114 (20,627)104,114 (20,627)
Accumulated deficit:
Balance, beginning of period(2,910,916)(2,714,744)(2,744,585)(2,909,990)
Net income (loss)(74,721)43,412 (241,052)102,626 
Cumulative effect of accounting changes— — — 136,032 
Balance, end of period(2,985,637)(2,671,332)(2,985,637)(2,671,332)
Total stockholders’ equity$5,409,108 $4,215,816 $5,409,108 $4,215,816 

Three Months Ended October 31, Nine Months Ended October 31,
2022202120222021
Common stock (in shares):
Balance, beginning of period255,485 248,087 251,209 242,667 
Issuance of common stock under employee equity plans, net of shares withheld for employee taxes1,198 1,429 5,474 6,767 
Settlement of convertible senior notes634 — 635 — 
Purchase of treasury stock from the exercise of convertible senior notes hedges(634)— (635)— 
Other— 43 — 125 
Balance, end of period256,683 249,559 256,683 249,559 
See Notes to Condensed Consolidated Financial Statements
6
Workday, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended October 31, Nine Months Ended October 31,
2022202120222021
Cash flows from operating activities:
Net income (loss)$(74,721)$43,412 $(241,052)$102,626 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization91,854 87,127 274,395 254,973 
Share-based compensation expenses314,196 278,995 933,709 808,349 
Amortization of deferred costs44,830 35,482 126,515 100,844 
Non-cash lease expense23,359 21,407 68,318 64,706 
(Gains) losses on investments(3,833)(25,222)20,746 (125,479)
Other3,251 4,408 15,373 (4,225)
Changes in operating assets and liabilities, net of business combinations:
Trade and other receivables, net61,885 6,649 200,008 171,257 
Deferred costs(56,552)(50,654)(163,023)(129,758)
Prepaid expenses and other assets2,435 18,050 (31,447)(21,047)
Accounts payable18,116 (12,007)20,884 (4,117)
Accrued expenses and other liabilities47,061 2,498 41,253 (24,109)
Unearned revenue(63,213)(25,491)(302,936)(158,465)
Net cash provided by (used in) operating activities408,668 384,654 962,743 1,035,555 
Cash flows from investing activities:
Purchases of marketable securities(2,310,915)(722,275)(5,651,005)(2,317,040)
Maturities of marketable securities2,181,147 674,246 3,767,509 2,303,478 
Sales of marketable securities19,988 — 53,355 27,286 
Owned real estate projects(181)(4)(446)(171,498)
Capital expenditures, excluding owned real estate projects(58,665)(33,335)(286,013)(190,912)
Business combinations, net of cash acquired— (60,645)— (739,865)
Purchase of other intangible assets(700)— (700)— 
Purchases of non-marketable equity and other investments(3,250)(26,720)(20,173)(84,526)
Sales and maturities of non-marketable equity and other investments4,513 1,874 11,674 5,169 
Other— — — 1 
Net cash provided by (used in) investing activities(168,063)(166,859)(2,125,799)(1,167,907)
Cash flows from financing activities:
Proceeds from issuance of debt, net of debt discount— — 2,978,077 — 
Repayments and extinguishment of debt(1,149,622)(9,384)(1,843,605)(28,205)
Payments for debt issuance costs— — (7,220)— 
Proceeds from issuance of common stock from employee equity plans, net of taxes paid for shares withheld710 1,894 85,002 76,381 
Other(161)(33)(538)(409)
Net cash provided by (used in) financing activities(1,149,073)(7,523)1,211,716 47,767 
Effect of exchange rate changes(920)50 (1,750)(85)
Net increase (decrease) in cash, cash equivalents, and restricted cash(909,388)210,322 46,910 (84,670)
Cash, cash equivalents, and restricted cash at the beginning of period2,497,043 1,092,929 1,540,745 1,387,921 
Cash, cash equivalents, and restricted cash at the end of period$1,587,655 $1,303,251 $1,587,655 $1,303,251 
See Notes to Condensed Consolidated Financial Statements
7
Three Months Ended October 31, Nine Months Ended October 31,
2022202120222021
Supplemental cash flow data:
Cash paid for interest$56,567 $3,837 $59,508 $10,904 
Cash paid for income taxes, net of refunds2,093 2,716 9,863 9,150 
Non-cash investing and financing activities:
Purchases of property and equipment, accrued but not paid68,028 49,713 68,028 49,713 

As of October 31,
20222021
Reconciliation of cash, cash equivalents, and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows:
Cash and cash equivalents$1,575,955 $1,297,259 
Restricted cash included in Prepaid expenses and other current assets11,700 5,992 
Total cash, cash equivalents, and restricted cash$1,587,655 $1,303,251 
See Notes to Condensed Consolidated Financial Statements
8
Workday, Inc.
Notes to Condensed Consolidated Financial Statements
As used in this report, the terms “Workday,” “registrant,” “we,” “us,” and “our” mean Workday, Inc. and its subsidiaries unless the context indicates otherwise.
Note 1. Overview and Basis of Presentation
Company and Background
Workday delivers applications for financial management, spend management, human capital management, planning, and analytics. With Workday, our customers have a unified system that can help them plan, execute, analyze, and extend to other applications and environments, thereby helping them continuously adapt how they manage their business and operations. We were originally incorporated in March 2005 in Nevada, and in June 2012, we reincorporated in Delaware.
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated financial statements include the results of Workday, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of our management, the information contained herein reflects all adjustments necessary for a fair presentation of Workday’s financial position, results of operations, stockholders’ equity, and cash flows. All such adjustments are of a normal, recurring nature. The results of operations for the three and nine months ended October 31, 2022, shown in this report are not necessarily indicative of the results to be expected for the full fiscal year ending January 31, 2023. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended January 31, 2022, filed with the SEC on February 28, 2022.
Certain prior period amounts reported in our consolidated financial statements and notes thereto have been reclassified to conform to current period presentation.
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with GAAP requires us to make certain estimates, judgements, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. For revenue recognition, examples of significant estimates, judgements, and assumptions include the identification of distinct performance obligations and the assessment of the standalone selling price for each performance obligation identified. Other significant estimates, judgements, and assumptions include, but are not limited to, the determination of the period of benefit for deferred commissions, the fair value and useful lives of assets acquired and liabilities assumed through business combinations, and the valuation of non-marketable equity investments. Actual results could differ from those estimates, judgements, and assumptions, and such differences could be material to our condensed consolidated financial statements.
Segment Information
We operate in one operating segment, cloud applications. Operating segments are defined as components of an enterprise where separate financial information is evaluated regularly by a chief operating decision maker (“CODM”) in deciding how to allocate resources and assessing performance. For the nine months ended October 31, 2022, both our Co-Chief Executive Officer and Chairman, Aneel Bhusri, and our Co-Chief Executive Officer, Chano Fernandez, together serve as our CODM. Our CODM allocates resources and assesses performance based upon discrete financial information at the consolidated level.
Note 2. Significant Accounting Policies and Accounting Standards
Significant Accounting Policies
There have been no material changes in our significant accounting policies as described in our Annual Report on Form 10-K for the fiscal year ended January 31, 2022.
9
Concentrations of Risk and Significant Customers
Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, debt securities, and trade and other receivables. Our deposits exceed federally insured limits.
No customer individually accounted for more than 10% of trade and other receivables, net as of October 31, 2022, or January 31, 2022. No customer individually accounted for more than 10% of total revenues during the three and nine months ended October 31, 2022, or 2021.
Other than the United States, no country individually accounted for more than 10% of total revenues during the three and nine months ended October 31, 2022, or 2021.
In order to reduce the risk of down-time of our cloud applications, we have established data centers in various geographic regions. We serve our customers and users from data center facilities operated by third parties, located in the United States, Canada, and Europe. We have internal procedures to restore services in the event of disaster at one of our data center facilities. Even with these procedures for disaster recovery in place, our cloud applications could be significantly interrupted during the implementation of the procedures to restore services.
In addition, we rely upon third-party hosted infrastructure partners globally, including Amazon Web Services (“AWS”), Google LLC, and Microsoft Corporation, to serve customers and operate certain aspects of our services. Given this, any disruption of or interference at our hosted infrastructure partners would impact our operations and our business could be adversely impacted.
We are also exposed to concentration of risk in our equity investments portfolio, which consists of marketable equity investments and non-marketable equity investments measured using the measurement alternative. As of both October 31, 2022, and January 31, 2022, we held one marketable equity investment with a carrying value that was individually greater than 10% of our total equity investments portfolio.
Recently Adopted Accounting Pronouncements
ASU No. 2021-08
In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with Topic 606, Revenue from Contracts with Customers, as if the acquirer had originated the contracts. Prior to the adoption of the new standard, such assets and liabilities were recognized by the acquirer at fair value on the acquisition date. We early adopted ASU No. 2021-08 on a prospective basis effective February 1, 2022. The adoption had no impact on our condensed consolidated financial statements during the three and nine months ended October 31, 2022, and any financial impact will be dependent on the magnitude and nature of future business combinations.
Note 3. Investments
Debt Securities
As of October 31, 2022, debt securities consisted of the following (in thousands):
Amortized CostUnrealized GainsUnrealized LossesAggregate Fair Value
U.S. treasury securities$2,391,963 $1 $(10,333)$2,381,631 
U.S. agency obligations548,109 — (6,020)542,089 
Corporate bonds624,186 18 (11,877)612,327 
Commercial paper1,054,938 — — 1,054,938 
Total debt securities$4,619,196 $19 $(28,230)$4,590,985 
Included in Cash and cash equivalents$757,758 $— $(113)$757,645 
Included in Marketable securities$3,861,438 $19 $(28,117)$3,833,340 
10
As of January 31, 2022, debt securities consisted of the following (in thousands):
Amortized CostUnrealized GainsUnrealized LossesAggregate Fair Value
U.S. treasury securities$843,627 $5 $(1,720)$841,912 
U.S. agency obligations232,093 — (1,168)230,925 
Corporate bonds490,867 — (1,815)489,052 
Commercial paper969,204 — — 969,204 
Total debt securities$2,535,791 $5 $(4,703)$2,531,093 
Included in Cash and cash equivalents$525,524 $— $(1)$525,523 
Included in Marketable securities$2,010,267 $5 $(4,702)$2,005,570 
We classify our debt securities as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. We consider all debt securities as funds available for use in current operations, including those with maturity dates beyond one year, and therefore classify these securities as current assets on the Condensed Consolidated Balance Sheets. Debt securities included in Marketable securities on the Condensed Consolidated Balance Sheets consist of securities with original maturities at the time of purchase greater than three months, and the remaining securities are included in Cash and cash equivalents.
As of October 31, 2022, and January 31, 2022, the fair value of debt securities in an unrealized loss position was $3.5 billion and $1.5 billion, respectively, the majority of which had been in a continuous unrealized loss position for less than 12 months. We did not recognize any credit or non-credit related losses related to our debt securities during the periods presented.
We sold $20 million of debt securities during the three months ended October 31, 2022, and we did not have any sales of debt securities during the three months ended October 31, 2021. We sold $48 million and $10 million of debt securities during the nine months ended October 31, 2022, and 2021, respectively. The realized gains and losses from the sales were immaterial.
Equity Investments
Equity investments consisted of the following (in thousands):
Condensed Consolidated Balance Sheets LocationOctober 31, 2022January 31, 2022
Money market funds Cash and cash equivalents$528,633 $607,640 
Non-marketable equity investments measured using the measurement alternative Other assets265,573 256,643 
Marketable equity investments Marketable securities82,790 104,318 
Total equity investments$876,996 $968,601 
Total realized and unrealized gains and losses associated with our equity investments consisted of the following (in thousands):
Three Months Ended October 31, Nine Months Ended October 31,
2022202120222021
Net realized gains (losses) recognized on equity investments sold (1)
$4,514 $11,759 $(365)$4,236 
Net unrealized gains (losses) recognized on equity investments held as of the end of the period(155)13,448 (19,121)121,167 
Total net gains (losses) recognized in Other income (expense), net$4,359 $25,207 $(19,486)$125,403 
(1)Reflects the difference between the sale proceeds and the carrying value of the equity investments at the beginning of the period.
11
Non-Marketable Equity Investments Measured Using the Measurement Alternative
Non-marketable equity investments measured using the measurement alternative include investments in privately held companies without readily determinable fair values in which we do not own a controlling interest or exercise significant influence. These investments are recorded at cost and are adjusted for observable transactions for same or similar securities of the same issuer or impairment events. The carrying values for our non-marketable equity investments are summarized below (in thousands):
October 31, 2022January 31, 2022
Total initial cost$209,867 $192,694 
Cumulative net unrealized gains (losses)55,706 63,949 
Carrying value$265,573 $256,643 
During the three months ended October 31, 2022, we recorded upward adjustments to the carrying value of non-marketable equity investments of $2 million, impairment losses of $2 million, and a gain of $4 million upon exiting a non-marketable equity investment. During the three months ended October 31, 2021, we recorded upward adjustments to the carrying value of non-marketable equity investments of $20 million and a non-cash gain of $12 million related to our acquisition of Zimit.
During the nine months ended October 31, 2022, we recorded upward adjustments to the carrying value of non-marketable equity investments of $8 million, impairment losses of $10 million, and a net loss of $2 million upon exiting a non-marketable equity investment. During the nine months ended October 31, 2021, we recorded upward adjustments to the carrying value of non-marketable equity investments of $34 million, impairment losses of $2 million, and a non-cash gain of $12 million related to our acquisition of Zimit.
Marketable Equity Investments
We hold marketable equity investments with readily determinable fair values over which we do not own a controlling interest or exercise significant influence. The carrying values for our marketable equity investments are summarized below (in thousands):
October 31, 2022January 31, 2022
Total initial cost$38,936 $40,739 
Cumulative net unrealized gains (losses)43,854 63,579 
Carrying value
$82,790 $104,318 
During the three months ended October 31, 2022, and 2021, we did not sell any marketable equity investments. During the nine months ended October 31, 2022, and 2021, we sold marketable equity investments for proceeds of $5 million and $17 million, respectively, with corresponding net realized gains of $1 million and losses of $6 million, respectively.
For the marketable equity investments held as of the end of each period, we recorded no material unrealized net gains or losses during the three months ended October 31, 2022, and we recorded net losses of $7 million during the three months ended October 31, 2021. During the nine months ended October 31, 2022, and 2021, we recorded unrealized net losses of $17 million and gains of $91 million, respectively, on marketable equity investments held as of the end of each period.
Note 4. Fair Value Measurements
We use a fair value hierarchy that requires we 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. Three levels of inputs may be used to measure fair value:
Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2 — Other inputs that are directly or indirectly observable in the marketplace.
Level 3 — Unobservable inputs that are supported by little or no market activity.
12
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of October 31, 2022 (in thousands):
Level 1Level 2Level 3Total
U.S. treasury securities$2,381,631 $— $— $2,381,631 
U.S. agency obligations— 542,089 — 542,089 
Corporate bonds— 612,327 — 612,327 
Commercial paper— 1,054,938 — 1,054,938 
Money market funds528,633 — — 528,633 
Marketable equity investments82,790 — — 82,790 
Foreign currency derivative assets— 159,292 — 159,292 
Total assets$2,993,054 $2,368,646 $— $5,361,700 
Foreign currency derivative liabilities$— $36,486 $— $36,486 
Total liabilities$— $36,486 $— $36,486 
The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of January 31, 2022 (in thousands):
Level 1Level 2Level 3Total
U.S. treasury securities$841,912 $— $— $841,912 
U.S. agency obligations— 230,925 — 230,925 
Corporate bonds— 489,052 — 489,052 
Commercial paper— 969,204 — 969,204 
Money market funds607,640 — — 607,640 
Marketable equity investments