CASH, CASH EQUIVALENTS AND INVESTMENTS

3 Months Ended

Apr. 30, 2025

CASH, CASH EQUIVALENTS AND INVESTMENTS

CASH, CASH EQUIVALENTS AND INVESTMENTS

NOTE 3 – CASH, CASH EQUIVALENTS AND INVESTMENTS

Cash Equivalents

At April 30, 2025 and January 31, 2025, 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. The balances of accrued dividends at April 30, 2025 and January 31, 2025 were $0.3 million and $0.3 million, respectively.

Investments

The Company’s investments consisted of the following as of April 30, 2025 and January 31, 2025:

	April 30,		January 31,
	2025		2025
Short-term investments	$	115,048	$	153,129
Available-for-sale securities		242,158		226,745
Total investments	$	357,206	$	379,874

Short-Term Investments

Short-term investments as of April 30, 2025 and January 31, 2025 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 April 30, 2025 and January 31, 2025 were $2.5 million and $3.1 million, respectively.

Available-For-Sale Securities

The Company’s available-for-sale (“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 April 30, 2025 and January 31, 2025:

	April 30, 2025
			Allowance for		Gross		Gross		Estimated
	Amortized		Credit		Unrealized		Unrealized		Fair
	Cost		Losses		Gains		Losses		Value
U.S. Treasury notes:
Due within one year	$	50,463	$	—	$	76	$	27	$	50,512
Due in one to three years		76,240		—		1,141		—		77,381
Due in three to five years		112,311		—		2,225		271		114,265
Totals	$	239,014	$	—	$	3,442	$	298	$	242,158

	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

As of April 30, 2025 and January 31, 2025, interest receivable in the amounts of $1.7 million and $2.1 million were included in the balances of AFS securities. For the three months ended April 30, 2025 and 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 April 30, 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 investments before recovery of their corresponding amortized cost bases.

Earnings on Cash and Invested Funds

The Company earns interest and dividends on its cash equivalents and invested funds. The Company also earns interest on most of its cash balances. Earnings on invested funds and cash account balances for the three months ended April 30, 2025 and 2024 were $5.5 million and $4.8 million, respectively, which are included in other income, net, in the condensed consolidated statements of earnings.

At April 30, 2025 and January 31, 2025, the weighted average annual yields of the Company’s outstanding invested funds and interest-bearing cash account balances were 4.0% and 4.1%, 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 April 30, 2025 and January 31, 2025, approximately 14% and 2%, 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.