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Financial Instruments
 9 Months Ended
Jan. 31, 2022
Investments All Other Investments [Abstract]  
Financial Instruments

5. Financial Instruments

The following tables show the Company’s financial instruments and balance sheet classifications as of January 31, 2022 and April 30, 2021:

 

 

 

January 31, 2022

 

 

 

Fair Value Measurement

 

 

Balance Sheet Classification

 

 

 

Cost

 

 

Unrealized

Gains

 

 

Unrealized

Losses

 

 

Fair

Value

 

 

Cash and

Cash

Equivalents

 

 

Marketable

Securities,

Current

 

 

Marketable

Securities,

Non-

current

 

 

Income taxes and other receivables

 

 

 

(in thousands)

 

Changes in Fair Value Recorded in

 

Other Comprehensive Loss

 

Level 2:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

$

38,857

 

 

$

—

 

 

$

(34

)

 

$

38,823

 

 

$

1,999

 

 

$

36,824

 

 

$

—

 

 

$

—

 

Corporate notes/bonds

 

 

39,951

 

 

 

—

 

 

 

(171

)

 

 

39,780

 

 

 

—

 

 

 

24,381

 

 

 

15,399

 

 

 

—

 

U.S. Treasury and Agency Securities

 

 

1,500

 

 

 

—

 

 

 

—

 

 

 

1,500

 

 

 

1,500

 

 

 

—

 

 

 

—

 

 

 

—

 

Total debt investments

 

$

80,308

 

 

$

—

 

 

$

(205

)

 

$

80,103

 

 

$

3,499

 

 

$

61,205

 

 

$

15,399

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in Fair Value Recorded in

 

Net Income

 

Level 1:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

184,141

 

 

$

—

 

 

$

11,905

 

 

$

172,236

 

 

$

—

 

Total equity investments

 

 

 

 

 

 

 

 

 

 

 

 

 

$

184,141

 

 

$

—

 

 

$

11,905

 

 

$

172,236

 

 

$

—

 

Cash

 

 

 

 

 

 

 

 

 

 

 

 

 

$

754,823

 

 

$

754,823

 

 

$

—

 

 

$

—

 

 

$

—

 

Money market funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

88,183

 

 

 

88,183

 

 

 

—

 

 

 

—

 

 

 

—

 

Level 2:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,491

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,491

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,108,741

 

 

$

846,505

 

 

$

73,110

 

 

$

187,635

 

 

$

1,491

 

 

 

 

 

April 30, 2021

 

 

 

Fair Value Measurement

 

 

Balance Sheet Classification

 

 

 

Cost

 

 

Unrealized

Gains

 

 

Unrealized

Losses

 

 

Fair

Value

 

 

Cash and

Cash

Equivalents

 

 

Marketable

Securities,

Current

 

 

Marketable

Securities,

Non-current

 

 

Other Accrued Liabilities

 

 

 

(in thousands)

 

Changes in Fair Value Recorded in

 

Other Comprehensive Income

 

Level 2:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

$

51,979

 

 

$

1

 

 

$

(7

)

 

$

51,973

 

 

$

9,499

 

 

$

42,474

 

 

$

—

 

 

$

—

 

Corporate notes/bonds

 

 

26,371

 

 

 

—

 

 

 

(20

)

 

 

26,351

 

 

 

—

 

 

 

10,134

 

 

 

16,217

 

 

 

—

 

U.S. Treasury and Agency Securities

 

 

1,975

 

 

 

—

 

 

 

—

 

 

 

1,975

 

 

 

—

 

 

 

1,975

 

 

 

—

 

 

 

—

 

Total debt investments

 

$

80,325

 

 

$

1

 

 

$

(27

)

 

$

80,299

 

 

$

9,499

 

 

$

54,583

 

 

$

16,217

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in Fair Value Recorded in

 

Net Income

 

Level 1:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

175,559

 

 

$

—

 

 

$

9,084

 

 

$

166,475

 

 

$

—

 

Total equity investments

 

 

 

 

 

 

 

 

 

 

 

 

 

$

175,559

 

 

$

—

 

 

$

9,084

 

 

$

166,475

 

 

$

—

 

Cash

 

 

 

 

 

 

 

 

 

 

 

 

 

$

752,737

 

 

$

752,737

 

 

$

—

 

 

$

—

 

 

$

—

 

Money market funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

88,542

 

 

 

88,542

 

 

 

—

 

 

 

—

 

 

 

—

 

Level 2:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(12

)

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,097,125

 

 

$

850,778

 

 

$

63,667

 

 

$

182,692

 

 

$

(12

)

 

(1)

These investments are held in trust for settlement of the Company’s vested obligations of $175.2 million and $157.3 million as of January 31, 2022 and April 30, 2021, respectively, under the ECAP (see Note 6 — Deferred Compensation and Retirement Plans). Unvested obligations under the deferred compensation plans totaled $25.9 million and $26.5 million as of January 31, 2022 and April 30, 2021, respectively. During the three months ended January 31, 2022, the fair value of the investments decreased; therefore, the Company recognized a loss of $7.7 million, which was recorded in other (loss) income, net. During the nine months ended January 31, 2022, the fair value increased; therefore, the Company recognized a gain of $2.4 million, which was recorded in other (loss) income, net. During the three and nine months ended January 31, 2021, the fair value of the investments increased; therefore, the Company recognized a gain of $15.2 million and $27.2 million, respectively, which was recorded in other (loss) income, net.

Investments in marketable securities classified as available-for-sale securities are made based on the Company’s investment policy, which restricts the types of investments that can be made. As of January 31, 2022 and April 30, 2021, marketable securities classified as available-for-sale consisted of commercial paper and corporate notes/bonds, and as of April 30, 2021 also includes US Treasury and Agency securities, for which market prices for similar assets are readily available. Investments that have an original maturity of 90 days or less and are considered highly liquid investments are classified as cash equivalents. As of January 31, 2022, available-for-sale marketable securities had remaining maturities ranging from one to 22 months. During the three and nine months ended January 31, 2022, there were $18.7 million and $54.7 million in sales/maturities of available-for-sale marketable securities, respectively. During the three and nine months ended January 31, 2021, there were $16.3 million and $44.7 million in sales/maturities of available-for-sale marketable securities, respectively. Investments in marketable securities that are held in trust for settlement of the Company’s vested obligations under the ECAP are equity securities and are based upon the investment selections the employee elects from a pre-determined set of securities in the ECAP and the Company invests in equity securities to mirror these elections. As of January 31, 2022 and April 30, 2021, the Company’s investments in equity securities consisted of mutual funds for which market prices are readily available. Unrealized gains recorded for the period that relate to equity securities still held as of January 31, 2022 and 2021 were $12.0 million and $22.2 million, respectively.

Foreign Currency Forward Contracts Not Designated as Hedges

The fair value of derivatives not designated as hedge instruments are as follows:

 

 

 

January 31,

2022

 

 

April 30,

2021

 

 

 

(in thousands)

 

Derivative assets:

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

$

1,753

 

 

$

822

 

Derivative liabilities:

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

$

262

 

 

$

834

 

 

As of January 31, 2022, the total notional amounts of the forward contracts purchased and sold were $93.7 million and $45.4 million, respectively. As of April 30, 2021, the total notional amounts of the forward contracts purchased and sold were $69.4 million and $44.9 million, respectively. The Company recognizes forward contracts as a net asset or net liability on the consolidated balance sheets as such contracts are covered by a master netting agreement. During the three and nine months ended January 31, 2022, the Company incurred a loss of $0.3 million and a gain of $0.2 million, respectively, related to forward contracts, which was recorded in general and administrative expenses in the accompanying consolidated statements of income. Foreign currency gains and losses related to forward contracts are offset by foreign currency losses and gains that result from transactions denominated in a currency other than the Company’s functional currency. During the three and nine months ended January 31, 2021, the Company incurred gains of $1.7 million and $1.9 million, respectively, related to forward contracts, which are recorded in general and administrative expenses in the accompanying consolidated statements of income. These foreign currency gains are offset by foreign currency losses that result from transactions denominated in a currency other than the Company’s functional currency. The cash flows related to foreign currency forward contracts are included in cash flows from operating activities.