Financial Instruments

3 Months Ended

Jul. 31, 2024

Investments, All Other Investments [Abstract]

The following tables show the Company’s financial instruments and balance sheet classification as of July 31, 2024 and April 30, 2024:


	July 31, 2024
	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 & Other Receivables

	(in thousands)
Changes in Fair Value Recorded in
Other Comprehensive Income
Level 2:
Commercial paper	$	12,163	$	—	$	(9)	$	12,154	$	—	$	12,154	$	—	$	—
Corporate notes/bonds	20,173		52		(7)		20,218		—		10,600		9,618		—
U.S. Treasury and Agency Securities	6,867		2		(3)		6,866		—		5,370		1,496		—
Total debt investments	$	39,203	$	54	$	(19)	$	39,238	$	—	$	28,124	$	11,114	$	—

Changes in Fair Value Recorded in
Net Income
Level 1:
Mutual funds (1)							$	232,583	$	—	$	12,502	$	220,081	$	—
Total equity investments							$	232,583	$	—	$	12,502	$	220,081	$	—
Cash							$	540,650	$	540,650	$	—	$	—	$	—
Money market funds							92,726		92,726		—		—		—
Level 2:
Foreign currency forward contracts							408		—		—		—		408
Total							$	905,605	$	633,376	$	40,626	$	231,195	$	408


	April 30, 2024
	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 Loss
Level 2:
Commercial paper	$	16,873	$	1	$	(19)	$	16,855	$	3,932	$	12,923	$	—	$	—
Corporate notes/bonds	17,322		3		(27)		17,298		—		10,050		7,248		—
U.S. Treasury and Agency Securities	4,355		—		(9)		4,346		—		2,441		1,905		—
Total debt investments	$	38,550	$	4	$	(55)	$	38,499	$	3,932	$	25,414	$	9,153	$	—

Changes in Fair Value Recorded in
Net Income
Level 1:
Mutual funds (1)							$	219,856	$	—	$	17,328	$	202,528	$	—
Total equity investments							$	219,856	$	—	$	17,328	$	202,528	$	—
Cash							$	790,938	$	790,938	$	—	$	—	$	—
Money market funds							146,135		146,135		—		—		—
Level 2:
Foreign currency forward contracts							(427)		—		—		—		(427)
Total							$	1,195,001	$	941,005	$	42,742	$	211,681	$	(427)

___________________


(1)			These investments are held in trust for settlement of the Company’s vested obligations of $214.5 million and $198.6 million as of July 31, 2024 and April 30, 2024, respectively, under the ECAP (see Note 6 — Deferred Compensation and Retirement Plans). Unvested obligations under the deferred compensation plans totaled $16.7 million and $22.4 million as of July 31, 2024 and April 30, 2024, respectively. During the three months ended July 31, 2024 and 2023, the fair value of the investments increased; therefore, the Company recognized a gain of $14.2 million and $12.8 million, respectively, which was recorded in other income, net.

As of July 31, 2024, available-for-sale marketable securities had remaining maturities ranging from 1 month to 23 months. During the three months ended July 31, 2024 and 2023, there were $6.9 million and $17.2 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 July 31, 2024 and April 30, 2024, the Company’s investments in equity securities consisted of mutual funds for which market prices are readily available. Unrealized gains that relate to equity securities still held as of July 31, 2024 and 2023 were $11.7 million and $11.9 million respectively.

Foreign Currency Forward Contracts Not Designated as Hedges

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


	July 31, 2024		April 30, 2024

	(in thousands)
Derivative assets:
Foreign currency forward contracts	$	745	$	979
Derivative liabilities:
Foreign currency forward contracts	$	337	$	1,406

As of July 31, 2024, the total notional amounts of the forward contracts purchased and sold were $79.1 million and $30.3 million, respectively. As of April 30, 2024, the total notional amounts of the forward contracts purchased and sold were $82.9 million and $34.0 million, respectively. The Company recognizes forward contracts as a net asset or net liability on the condensed consolidated balance sheets as such contracts are covered by master netting agreements. During the three months ended July 31, 2024 and 2023, the Company incurred losses of $0.2 million and gains of $1.7 million, respectively, related to forward contracts which are recorded in general and administrative expenses in the accompanying condensed consolidated statements of income. These foreign currency losses and gains offset foreign currency gains and 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.