urbn-10q_20190731.htm
false 2020 Q2 URBAN OUTFITTERS INC 0000912615 --01-31 Large Accelerated Filer true false true 6 2020 6 P10Y P9M18D P2Y1M6D P2Y3M18D

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended July 31, 2019

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                      

Commission File No. 000-22754

 

Urban Outfitters, Inc.

(Exact Name of Registrant as Specified in Its Charter)

 

 

Pennsylvania

23-2003332

(State or Other Jurisdiction of

Incorporation or Organization)

(I.R.S. Employer

Identification No.)

 

 

5000 South Broad Street, Philadelphia, PA

19112-1495

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s telephone number, including area code: (215454-5500

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Shares, par value $.0001 per share

 

URBN

 

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 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 (§232.405 of this chapter) 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  

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common shares, $0.0001 par value—97,975,343 shares outstanding on September 3, 2019.

 

 

 


TABLE OF CONTENTS

PART I

FINANCIAL INFORMATION

 

Item 1.

Financial Statements (unaudited)

 

 

 

 

 

Condensed Consolidated Balance Sheets as of July 31, 2019, January 31, 2019 and July 31, 2018

1

 

 

 

 

Condensed Consolidated Statements of Income for the three and six months ended July 31, 2019 and 2018

2

 

 

 

 

Condensed Consolidated Statements of Comprehensive Income for the three and six months ended July 31, 2019 and 2018

3

 

 

 

 

Condensed Consolidated Statements of Shareholders’ Equity for the three and six months ended July 31, 2019 and 2018

4

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the six months ended July 31, 2019 and 2018

6

 

 

 

 

Notes to Condensed Consolidated Financial Statements

7

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

20

 

 

 

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

28

 

 

 

Item 4.

Controls and Procedures

28

 

 

 

PART II

OTHER INFORMATION

 

 

 

Item 1.

Legal Proceedings

29

 

 

 

Item 1A.

Risk Factors

29

 

 

 

Item 2.

Unregistered Sales of Equity Securities and the Use of Proceeds

29

 

 

 

Item 6.

Exhibits

30

 

 

 

 

Signatures

31

 

 


 

PART I

FINANCIAL INFORMATION

Item  1.

Financial Statements

URBAN OUTFITTERS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except share data)

(unaudited)

  

 

 

July 31,

 

 

January 31,

 

 

July 31,

 

 

 

2019

 

 

2019

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

162,018

 

 

$

358,260

 

 

$

405,727

 

Marketable securities

 

 

171,398

 

 

 

279,232

 

 

 

198,166

 

Accounts receivable, net of allowance for doubtful accounts of

   $939, $1,499 and $1,613, respectively

 

 

95,131

 

 

 

80,461

 

 

 

90,646

 

Inventory

 

 

440,087

 

 

 

370,507

 

 

 

375,657

 

Prepaid expenses and other current assets

 

 

131,763

 

 

 

114,296

 

 

 

131,572

 

Total current assets

 

 

1,000,397

 

 

 

1,202,756

 

 

 

1,201,768

 

Property and equipment, net

 

 

867,434

 

 

 

796,029

 

 

 

807,084

 

Operating lease right-of-use assets

 

 

1,085,543

 

 

 

 

 

 

 

Marketable securities

 

 

78,857

 

 

 

57,292

 

 

 

45,514

 

Deferred income taxes and other assets

 

 

105,814

 

 

 

104,438

 

 

 

104,169

 

Total Assets

 

$

3,138,045

 

 

$

2,160,515

 

 

$

2,158,535

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

181,955

 

 

$

144,414

 

 

$

149,947

 

Current portion of operating lease liabilities

 

 

209,072

 

 

 

 

 

 

 

Accrued expenses, accrued compensation and other current liabilities

 

 

235,106

 

 

 

242,230

 

 

 

279,991

 

Total current liabilities

 

 

626,133

 

 

 

386,644

 

 

 

429,938

 

Non-current portion of operating lease liabilities

 

 

1,090,623

 

 

 

 

 

 

 

Deferred rent and other liabilities

 

 

59,885

 

 

 

284,773

 

 

 

284,925

 

Total Liabilities

 

 

1,776,641

 

 

 

671,417

 

 

 

714,863

 

Commitments and contingencies (see Note 12)

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

Preferred shares; $.0001 par value, 10,000,000 shares authorized,

   none issued

 

 

 

 

 

 

 

 

 

Common shares; $.0001 par value, 200,000,000 shares authorized,

   97,965,012, 105,642,283 and 108,951,308 shares issued and

   outstanding, respectively

 

 

10

 

 

 

11

 

 

 

11

 

Additional paid-in-capital

 

 

 

 

 

 

 

 

18,770

 

Retained earnings

 

 

1,398,681

 

 

 

1,516,190

 

 

 

1,451,492

 

Accumulated other comprehensive loss

 

 

(37,287

)

 

 

(27,103

)

 

 

(26,601

)

Total Shareholders’ Equity

 

 

1,361,404

 

 

 

1,489,098

 

 

 

1,443,672

 

Total Liabilities and Shareholders’ Equity

 

$

3,138,045

 

 

$

2,160,515

 

 

$

2,158,535

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

1


 

URBAN OUTFITTERS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(amounts in thousands, except share and per share data)

(unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

July 31,

 

 

July 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net sales

 

$

962,329

 

 

$

992,454

 

 

$

1,826,742

 

 

$

1,848,142

 

Cost of sales

 

 

646,454

 

 

 

636,610

 

 

 

1,241,811

 

 

 

1,211,638

 

Gross profit

 

 

315,875

 

 

 

355,844

 

 

 

584,931

 

 

 

636,504

 

Selling, general and administrative expenses

 

 

237,814

 

 

 

238,992

 

 

 

466,850

 

 

 

465,756

 

Income from operations

 

 

78,061

 

 

 

116,852

 

 

 

118,081

 

 

 

170,748

 

Other income, net

 

 

3,498

 

 

 

1,746

 

 

 

6,178

 

 

 

1,826

 

Income before income taxes

 

 

81,559

 

 

 

118,598

 

 

 

124,259

 

 

 

172,574

 

Income tax expense

 

 

21,239

 

 

 

25,789

 

 

 

31,354

 

 

 

38,505

 

Net income

 

$

60,320

 

 

$

92,809

 

 

$

92,905

 

 

$

134,069

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.61

 

 

$

0.85

 

 

$

0.91

 

 

$

1.23

 

Diluted

 

$

0.61

 

 

$

0.84

 

 

$

0.91

 

 

$

1.22

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

99,095,562

 

 

 

108,831,399

 

 

 

101,722,244

 

 

 

108,663,990

 

Diluted

 

 

99,602,465

 

 

 

110,433,840

 

 

 

102,427,040

 

 

 

110,091,586

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

2


 

URBAN OUTFITTERS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(amounts in thousands)

(unaudited)

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

July 31,

 

 

July 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income

 

$

60,320

 

 

$

92,809

 

 

$

92,905

 

 

$

134,069

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation

 

 

(6,771

)

 

 

(7,881

)

 

 

(10,571

)

 

 

(15,850

)

Change in unrealized gains (losses) on marketable securities, net of tax

 

 

201

 

 

 

(7

)

 

 

387

 

 

 

(100

)

Total other comprehensive loss

 

 

(6,570

)

 

 

(7,888

)

 

 

(10,184

)

 

 

(15,950

)

Comprehensive income

 

$

53,750

 

 

$

84,921

 

 

$

82,721

 

 

$

118,119

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

3


 

URBAN OUTFITTERS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(amounts in thousands, except share data)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

Common Shares

 

 

Additional

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Number of

 

 

Par

 

 

Paid-in

 

 

Retained

 

 

Comprehensive

 

 

 

 

 

 

 

Shares

 

 

Value

 

 

Capital

 

 

Earnings

 

 

Loss

 

 

Total

 

Balances as of April 30, 2019

 

 

103,599,364

 

 

$

10

 

 

$

 

 

$

1,478,678

 

 

$

(30,717

)

 

$

1,447,971

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

60,320

 

 

 

(6,570

)

 

 

53,750

 

Share-based compensation

 

 

 

 

 

 

 

 

5,908

 

 

 

 

 

 

 

 

 

5,908

 

Share-based awards

 

 

5,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share repurchases

 

 

(5,639,352

)

 

 

 

 

 

(5,908

)

 

 

(140,317

)

 

 

 

 

 

(146,225

)

Balances as of July 31, 2019

 

 

97,965,012

 

 

$

10

 

 

$

 

 

$

1,398,681

 

 

$

(37,287

)

 

$

1,361,404

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

Common Shares

 

 

Additional

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Number of

 

 

Par

 

 

Paid-in

 

 

Retained

 

 

Comprehensive

 

 

 

 

 

 

 

Shares

 

 

Value

 

 

Capital

 

 

Earnings

 

 

Loss

 

 

Total

 

Balances as of April 30, 2018

 

 

108,670,688

 

 

$

11

 

 

$

6,434

 

 

$

1,358,683

 

 

$

(18,713

)

 

$

1,346,415

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

92,809

 

 

 

(7,888

)

 

 

84,921

 

Share-based compensation

 

 

 

 

 

 

 

 

5,466

 

 

 

 

 

 

 

 

 

5,466

 

Share-based awards

 

 

300,328

 

 

 

 

 

 

7,747

 

 

 

 

 

 

 

 

 

7,747

 

Share repurchases

 

 

(19,708

)

 

 

 

 

 

(877

)

 

 

 

 

 

 

 

 

(877

)

Balances as of July 31, 2018

 

 

108,951,308

 

 

$

11

 

 

$

18,770

 

 

$

1,451,492

 

 

$

(26,601

)

 

$

1,443,672

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

4


 

URBAN OUTFITTERS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(amounts in thousands, except share data)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

Common Shares

 

 

Additional

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Number of

 

 

Par

 

 

Paid-in

 

 

Retained

 

 

Comprehensive

 

 

 

 

 

 

 

Shares

 

 

Value

 

 

Capital

 

 

Earnings

 

 

Loss

 

 

Total

 

Balances as of January 31, 2019

 

 

105,642,283

 

 

$

11

 

 

$

 

 

$

1,516,190

 

 

$

(27,103

)

 

$

1,489,098

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

92,905

 

 

 

(10,184

)

 

 

82,721

 

Share-based compensation

 

 

 

 

 

 

 

 

11,461

 

 

 

 

 

 

 

 

 

11,461

 

Share-based awards

 

 

568,989

 

 

 

 

 

 

974

 

 

 

 

 

 

 

 

 

974

 

Share repurchases

 

 

(8,246,260

)

 

 

(1

)

 

 

(12,435

)

 

 

(210,414

)

 

 

 

 

 

(222,850

)

Balances as of July 31, 2019

 

 

97,965,012

 

 

$

10

 

 

$

 

 

$

1,398,681

 

 

$

(37,287

)

 

$

1,361,404

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

Common Shares

 

 

Additional

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Number of

 

 

Par

 

 

Paid-in

 

 

Retained

 

 

Comprehensive

 

 

 

 

 

 

 

Shares

 

 

Value

 

 

Capital

 

 

Earnings

 

 

Loss

 

 

Total

 

Balances as of January 31, 2018

 

 

108,248,568

 

 

$

11

 

 

$

684

 

 

$

1,310,859

 

 

$

(10,651

)

 

$

1,300,903

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

134,069

 

 

 

(15,950

)

 

 

118,119

 

Share-based compensation

 

 

 

 

 

 

 

 

10,990

 

 

 

 

 

 

 

 

 

10,990

 

Share-based awards

 

 

860,758

 

 

 

 

 

 

13,020

 

 

 

 

 

 

 

 

 

13,020

 

Cumulative effect of change in

     accounting pronouncements

 

 

 

 

 

 

 

 

 

 

 

6,564

 

 

 

 

 

 

6,564

 

Share repurchases

 

 

(158,018

)

 

 

 

 

 

(5,924

)

 

 

 

 

 

 

 

 

(5,924

)

Balances as of July 31, 2018

 

 

108,951,308

 

 

$

11

 

 

$

18,770

 

 

$

1,451,492

 

 

$

(26,601

)

 

$

1,443,672

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

5


 

URBAN OUTFITTERS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in thousands)

(unaudited)

  

 

 

For the Six Months Ended

 

 

 

July 31,

 

 

 

2019

 

 

2018

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

92,905

 

 

$

134,069

 

Adjustments to reconcile net income to net cash provided by operating

   activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

55,395

 

 

 

60,158

 

Right-of-use asset amortization

 

 

94,173

 

 

 

 

Provision (benefit) for deferred income taxes

 

 

1,107

 

 

 

(9,506

)

Share-based compensation expense

 

 

11,461

 

 

 

10,990

 

Loss on disposition of property and equipment, net

 

 

593

 

 

 

2,452

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Receivables

 

 

(15,032

)

 

 

(14,196

)

Inventory

 

 

(71,899

)

 

 

(26,807

)

Prepaid expenses and other assets

 

 

(23,121

)

 

 

(10,086

)

Payables, accrued expenses and other liabilities

 

 

16,009

 

 

 

71,728

 

Operating lease liabilities

 

 

(100,338

)

 

 

 

Net cash provided by operating activities

 

 

61,253

 

 

 

218,802

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Cash paid for property and equipment

 

 

(116,465

)

 

 

(55,642

)

Cash paid for marketable securities

 

 

(235,094

)

 

 

(168,823

)

Sales and maturities of marketable securities

 

 

320,411

 

 

 

130,029

 

Net cash used in investing activities

 

 

(31,148

)

 

 

(94,436

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from the exercise of stock options

 

 

974

 

 

 

13,020

 

Share repurchases related to share repurchase program

 

 

(217,421

)

 

 

 

Share repurchases related to taxes for share-based awards

 

 

(5,429

)

 

 

(5,924

)

Net cash (used in) provided by financing activities

 

 

(221,876

)

 

 

7,096

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(4,471

)

 

 

(7,955

)

(Decrease) increase in cash and cash equivalents

 

 

(196,242

)

 

 

123,507

 

Cash and cash equivalents at beginning of period

 

 

358,260

 

 

 

282,220

 

Cash and cash equivalents at end of period

 

$

162,018

 

 

$

405,727

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

Cash paid during the year for:

 

 

 

 

 

 

 

 

Income taxes

 

$

37,839

 

 

$

39,698

 

Non-cash investing activities—Accrued capital expenditures

 

$

22,325

 

 

$

15,002

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

6


 

URBAN OUTFITTERS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands, except share and per share data)

(unaudited)

1. Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These condensed financial statements should be read in conjunction with Urban Outfitters, Inc.’s (the “Company’s”) Annual Report on Form 10-K for the fiscal year ended January 31, 2019, filed with the United States Securities and Exchange Commission on April 1, 2019.

The Company’s business experiences seasonal fluctuations in net sales and net income, with a more significant portion typically realized in the second half of each year predominantly due to the year-end holiday period. Historically, and consistent with the retail industry, this seasonality also impacts our working capital requirements, particularly with regard to inventory. Accordingly, the results of operations for the three and six months ended July 31, 2019 are not necessarily indicative of the results to be expected for the full year.

The Company’s fiscal year ends on January 31. All references in these notes to the Company’s fiscal years refer to the fiscal years ended on January 31 in those years. For example, the Company’s fiscal year 2020 will end on January 31, 2020.

2. Recent Accounting Pronouncements

Recently Adopted

In February 2016, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update that amends the existing accounting standards for lease accounting. This update requires lessees to recognize a right-of-use asset and lease liability for both operating and finance leases. The Company adopted the new guidance on February 1, 2019 using a modified retrospective approach at the beginning of the period of adoption. The Company elected the “package of three” practical expedients and did not reassess expired or existing leases as of the effective date. The Company also elected the practical expedient to not separate non-lease components from lease components as it pertains to real estate leases. Adoption on February 1, 2019 resulted in the recognition of approximately $1.3 billion of lease liabilities based on the present value of the remaining minimum rental payments using discount rates as of the effective date. Corresponding right-of-use assets of approximately $1.1 billion were recognized, with the offsetting balance representing a reduction in the previously recognized deferred rent balance. Adoption did not result in a material impact on the Company’s Consolidated Statements of Income or Consolidated Statements of Cash Flows.

7


 

3. Revenue from Contracts with Customers

Contract receivables occur when the Company satisfies all of its performance obligations under a contract and recognizes revenue prior to billing or receiving consideration from a customer for which it has an unconditional right to payment. Contract receivables arise from credit card transactions and sales to Wholesale segment customers and franchisees. For the six month period ended July 31, 2019, the opening and closing balances of contract receivables, net of allowance for doubtful accounts, were $80,461 and $95,131, respectively. For the six month period ended July 31, 2018, the opening and closing balances of contract receivables, net of allowance for doubtful accounts, were $76,962 and $90,646, respectively. Contract receivables are included in “Accounts receivable, net of allowance for doubtful accounts” in the Condensed Consolidated Balance Sheets.

Contract liabilities represent unearned revenue and result from the Company receiving consideration in a contract with a customer for which it has not satisfied all of its performance obligations. The Company’s contract liabilities result from customer deposits, customer loyalty programs and the issuance of gift cards. Gift cards are expected to be redeemed within two years of issuance, with the majority of redemptions occurring in the first year. For the six month period ended July 31, 2019, the opening and closing balances of contract liabilities were $49,747 and $41,585, respectively. For the six month period ended July 31, 2018, the opening and closing balances of contract liabilities were $56,637 and $32,013, respectively. Contract liabilities are included in “Accrued expenses, accrued compensation and other current liabilities” in the Condensed Consolidated Balance Sheets. During the six month period ended July 31, 2019, the Company recognized $23,081 of revenue that was included in the contract liability balance at the beginning of the period.

 

 

8


 

4. Marketable Securities

During all periods shown, marketable securities are classified as available-for-sale. The amortized cost, gross unrealized gains (losses) and fair value of available-for-sale securities by major security type and class of security as of July 31, 2019, January 31, 2019 and July 31, 2018 were as follows:

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

 

 

Cost

 

 

Gains

 

 

(Losses)

 

 

Value

 

As of July 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

$

125,943

 

 

$

190

 

 

$

(31