Table:
|  |  | Fair Value Fair Value Measurements Using Significant Unobservable Inputs (Level 3) |  |
| --- | --- | --- | --- |
|  | Derivative Contracts | Convertible Debt Securities | Total |
| Balances, January 31, 2018 | $1.0 | $7.8 | $8.8 |
| Settlements | — | (3.5) | (3.5) |
| (Losses) Gains included in earnings (1) | (0.2) | 0.5 | 0.3 |
| Losses included in OCI | — | (0.4) | (0.4) |
| Balances, January 31, 2019 | $0.8 | $4.4 | $5.2 |
Paragraphs:
Autodesk applies fair value accounting for certain financial assets and liabilities, which consist of cash equivalents, marketable securities, and other financial instruments, on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and (Level 3) unobservable inputs for which there is little or no market data, which require Autodesk to develop its own assumptions. When determining fair value, Autodesk uses observable market data and relies on unobservable inputs only when observable market data is not available. Autodesk reviews for any potential changes on a quarterly basis, in conjunction with our fiscal quarter-end close.
Autodesk's cash equivalents, marketable securities, and financial instruments are primarily classified within Level 1 or Level 2 of the fair value hierarchy. Autodesk values its securities on pricing from pricing vendors, who may use quoted prices in active markets for identical assets (Level 1) or inputs other than quoted prices that are observable either directly or indirectly in determining fair value (Level 2). Autodesk's Level 2 securities are valued primarily using observable inputs other than quoted prices in active markets for identical assets and liabilities. Autodesk's Level 3 securities consist of investments held in convertible debt securities, and derivative contracts.
A reconciliation of the change in Autodesk’s Level 3 items for the fiscal year ended January 31, 2019 was as follows:
(1) Included in “Interest and other expense, net” in the accompanying Consolidated Statements of Operations.
Question:
How often does Autodesk review for changes?
Answer: Autodesk reviews for any potential changes on a quarterly basis, in conjunction with our fiscal quarter-end close.