Investments

12 Months Ended

Apr. 30, 2020

Investments

Investments

3.           Investments

Investments consist of the following:

	April 30,
	2020		2019
	(In thousands)
Short-term investments:
Held-to-maturity securities:
Municipal securities	$	—	$	5,332
U.S. government securities		—		63,205
Corporate bonds		—		81,950
Total held-to-maturity investments		—		150,487
Available-for-sale securities:
Municipal securities		5,244		—
U.S. government securities		33,771		—
Corporate bonds		8,492		—
Total available-for-sale investments		47,507		—
Total short-term investments	$	47,507	$	150,487
Long-term investments:
Held-to-maturity securities:
U.S. government securities	$	—	$	7,404
Corporate bonds		—		1,982
Total held-to-maturity investments		—		9,386
Available-for-sale securities:
Municipal securities		1,592		—
U.S. government securities		8,996		—
Total available-for-sale investments		10,588		—
Equity method investments
Investment in limited partnership fund		4,442		—
Total equity method investments		4,442		—
Total long-term investments	$	15,030	$	9,386

Held-To-Maturity Securities

As of April 30, 2019, the balance of held-to-maturity securities consisted of state and local government municipal securities, U.S. government securities, U.S. government agency securities, and corporate bonds. Interest earned from these investments is recorded in interest income. During the three months ended April 30, 2020, in consideration of the impact of the COVID-19 pandemic, the Company made the strategic decision to sell a significant portion of its corporate and municipal held-to-maturity securities and invested the proceeds in cash and cash equivalents and U.S. government and U.S. government agency securities. As such the investments were transferred from held-to-maturity classification to available-for-sale classification. Prior to the three months ended April 30, 2020, the Company had the intent and ability to hold its investments classified as held-to-maturity to their maturity dates. The net carrying

amount and net unrealized gains of held to maturity securities transferred to available-for-sale securities or cash equivalents at the time of transfer are as follows (in thousands):

			Net
	Carrying		Unrealized
	Amount		Gains
Municipal securities	$	23,706	$	34
U.S. government securities		41,465		38
Corporate bonds		85,679		73
Certificate of deposits		1,017		5
Total held-to-maturity investments	$	151,867	$	150

The Company held no held-to maturity securities at April 30, 2020. The amortized cost, gross unrealized losses, and estimated fair value of the held-to-maturity securities as of April 30, 2019 are as follows (in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Municipal securities	$	5,332	$	2	$	(1)	$	5,333
U.S. government securities		70,609		78		(52)		70,635
Corporate bonds		83,932		20		(5)		83,947
Total held-to-maturity investments	$	159,873	$	100	$	(58)	$	159,915

Available-For-Sale Securities

As of April 30, 2020, the balance of available-for-sale securities consisted of state and local government municipal securities, U.S. government securities, U.S. government agency securities, and investment grade corporate bonds. Interest earned from these investments is recorded in interest income. Realized gains on sales of these investments on the basis of specific identification is recorded in interest income.

The Company held no available-for-sale securities at April 30, 2019. The following table is a summary of the activity related to the available-for-sale investments recorded in short-term and long-term investments (in thousands):

	April 30, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Municipal securities	$	6,807	$	29	$	—	$	6,836
U.S. government securities		42,730		41		(4)		42,767
Corporate bonds		8,495		—		(3)		8,492
Total held-to-maturity investments	$	58,032	$	70	$	(7)	$	58,095

The amortized cost and fair value of the Company’s available-for-sale securities by contractual maturity at

April 30, 2020, are as follows:

	Cost		Fair Value
Due within one year	$	47,457	$	47,507
Due after one year through five years		10,575		10,588
Total	$	58,032	$	58,095

Auction Rate Securities

As of April 30, 2018, the balance of available-for-sale auction rate securities consisted of two investment grade auction rate municipal bonds with maturities ranging from 1 to 16 years. These investments have characteristics similar to short term investments. During the three months ended July 28, 2018, the remaining investment grade auction rate municipal bonds were redeemed at par value.