CASH, CASH EQUIVALENTS AND INVESTMENTS

12 Months Ended

Jan. 31, 2025

CASH, CASH EQUIVALENTS AND INVESTMENTS

CASH, CASH EQUIVALENTS AND INVESTMENTS

NOTE 3 – CASH, CASH EQUIVALENTS AND INVESTMENTS

Cash Equivalents

At January 31, 2025 and 2024, certain amounts of cash equivalents were invested in a money market fund with 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, 2025 and 2024 were $0.3 million and $0.7 million, respectively.

Investments

The Company’s investments consisted of the following as of January 31, 2025 and 2024:

	2025		2024
Short-term investments	$	153,129	$	109,489
Available-for-sale securities		226,745		105,884
Total investments	$	379,874	$	215,373

Short-Term Investments

Short-term investments as of January 31, 2025 and 2024 consisted solely of 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. The balances of accrued interest on the CDs at January 31, 2025 and 2024 were $3.1 million and $4.5 million, respectively. Interest income is recorded when earned and is included in other income, net, in the consolidated statements of earnings.

Available-For-Sale Securities

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, 2025 and 2024:

	January 31, 2025
			Allowance for		Gross		Gross		Estimated
	Amortized		Credit		Unrealized		Unrealized		Fair
	Cost		Losses		Gains		Losses		Value
U.S. Treasury notes:
Due within one year	$	50,676	$	—	$	126	$	7	$	50,795
Due in one to three years		84,881		—		381		105		85,157
Due in three to five years		91,599		—		124		930		90,793
Totals	$	227,156	$	—	$	631	$	1,042	$	226,745

	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 three years	$	96,217	$	—	$	568	$	230	$	96,555
U.S. corporate debt security:
Due in one to three years		9,406		—		—		77		9,329
Totals	$	105,623	$	—	$	568	$	307	$	105,884

As of January 31, 2025 and 2024, interest receivable in the amounts of $2.1 million and $1.3 million, respectively, were included in the balances of AFS securities. During Fiscal 2025 and 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.

The Company does not believe the unrealized losses represent credit losses based on the evaluation of evidence as of January 31, 2025, 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 Cash and Invested Funds

The Company earns interest and dividends on its invested funds. The Company also earns interest on most of its cash balances. Earnings on invested funds and cash account balances for Fiscal 2025, Fiscal 2024 and Fiscal 2023 were $21.2 million, $14.1 million and $3.4 million, respectively. Earnings on invested funds and bank account balances are included in other income, net, in the consolidated statements of earnings.

At January 31, 2025 and 2024, the weighted average annual yields of the Company’s outstanding invested funds and interest-bearing cash account balances were 4.1% and 5.1%, respectively.

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, 2025 and 2024, approximately 2% and 12%, respectively, of the Company’s cash and cash equivalents were held by 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.