CASH, CASH EQUIVALENTS AND INVESTMENTS

12 Months Ended

Jan. 31, 2024

CASH, CASH EQUIVALENTS AND INVESTMENTS

CASH, CASH EQUIVALENTS AND INVESTMENTS

NOTE 3 – CASH, CASH EQUIVALENTS AND INVESTMENTS

At January 31, 2024 and 2023, certain amounts of cash equivalents were invested in a money market fund with net assets invested in high-quality money market instruments, including U.S. Treasury obligations; obligations of U.S. government agencies, authorities, instrumentalities or sponsored enterprises; and repurchase agreements secured by such obligations. Dividend income related to money market investments is recorded when earned. The balances of accrued dividends at January 31, 2024 and 2023 were $0.7 million and $0.3 million, respectively.

Investments

The Company’s investments consisted of the following as of January 31, 2024 and 2023:

	2024		2023
Short-term investments	$	109,489	$	151,511
Available-for-sale securities		105,884		—
Total investments	$	215,373	$	151,511

Short-Term Investments

Short-term investments as of January 31, 2024 and 2023 consisted solely of certificates of deposit (“CDs”) with initial maturities of one year or less purchased from Bank of America, N.A. (the “Bank”). The Company has the intent and ability to hold the CDs until they mature, and they are carried at cost plus accrued interest. Interest income is recorded when earned and is included in other income. At January 31, 2024 and 2023, the weighted average annual interest rates of the outstanding CDs were 5.4% and 2.5%, respectively. The balances of accrued interest on the CDs at January 31, 2024 and 2023 were $4.5 million and $1.8 million, respectively.

Available-For-Sale Securities

AFS securities as of January 31, 2024 consisted of U.S. Treasury notes and a U.S. corporate debt security with original maturities of two or three years. The Company did not have any AFS securities investments as of January 31, 2023. The Company’s AFS securities consisted of the following amounts of amortized cost, allowance for credit losses, gross unrealized gains and losses and estimated fair value by contractual maturity as of January 31, 2024:

	January 31, 2024
			Allowance for		Gross		Gross		Estimated
	Amortized		Credit		Unrealized		Unrealized		Fair
	Cost		Losses		Gains		Losses		Value
U.S. Treasury notes:
Due in one to two years	$	50,634	$	—	$	305	$	102	$	50,837
Due in two to three years		45,583		—		263		128		45,718
U.S. corporate debt security:
Due in two to three years		9,406		—		—		77		9,329
Totals	$	105,623	$	—	$	568	$	307	$	105,884

As of January 31, 2024, interest receivable in the amount of $1.3 million is included in the balance of AFS securities. During Fiscal 2024, the change in net unrealized holding gains, net of tax, for the Company’s AFS securities reported in other comprehensive income was approximately $0.2 million. During Fiscal 2024, there were no sales of the Company’s AFS securities, and therefore, there were no amounts of gains or losses reclassified out of other comprehensive income into net income. For AFS securities with unrealized losses, the Company does not believe the unrealized losses represent credit losses based on the evaluation of evidence as of January 31, 2024, which includes an assessment of whether it is more likely than not the Company will be required to sell or intends to sell the investment before recovery of its amortized cost basis.

Earnings on Invested Funds

Earnings on invested funds for Fiscal 2024, Fiscal 2023 and Fiscal 2022 were $14.1 million, $3.4 million and $3.0 million, respectively, and are included in other income, net, in the consolidated statements of earnings.

Concentration Risk

The Company has a substantial portion of its cash on deposit in the U.S. with the Bank or invested in CDs purchased from the Bank. In addition, the Company has cash invested in a money market fund at a separate institution. The Company also maintains certain Euro-based bank accounts in Ireland and certain pound sterling-based bank accounts in the U.K. in support of the operations of APC. As of January 31, 2024, approximately 12% of the Company’s cash and cash equivalents were held by local financial institutions in Ireland and the U.K. Management does not believe that the combined amount

of the CDs and the cash deposited with the Bank, cash invested in the money market fund, and cash balances maintained at financial institutions in Ireland and the U.K., in excess of government-insured levels, represent material risks.