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Investments

9 Months Ended

Jan. 25, 2020

3. Investments

Investments consist of the following (in thousands):


	January 25,		April 30,
	2020		2019

Short-term investments:
Held-to-maturity securities:
Municipal securities	$	7,565	$	5,332
U.S. government securities		45,439		63,205
Corporate bonds		82,298		81,950
Total held-to-maturity investments		135,302		150,487
Available-for-sale securities:
Variable rate demand notes		13,200		—
Total available-for-sale investments		13,200		—
Total short-term investments	$	148,502	$	150,487
Long-term investments:
Held-to-maturity securities:
Municipal securities		15,887		—
U.S. government securities		—		7,404
Corporate bonds		4,558		1,982
Certificates of deposit		1,017		—
Total held-to-maturity investments		21,462		9,386
Available-for-sale securities:
Investment in limited partnership fund		4,947		—
Total available-for-sale investments		4,947		—
Total long-term investments	$	26,409	$	9,386

Held-To-Maturity Securities

As of January 25, 2020 and 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, highly rated corporate bonds, and certificates of deposit. Interest earned from these investments is recorded in interest income.

The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the held-to-maturity investments as of January 25, 2020 were as follows (in thousands):


	January 25, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Municipal securities	$	23,452	$	12	$	(4)	$	23,460
U.S. government securities		45,439		63		—		45,502
Corporate bonds		86,856		57		—		86,913
Certificates of deposit		1,017		4		—		1,021
Total held-to-maturity investments	$	156,764	$	136	$	(4)	$	156,896

The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the held-to-maturity investments as of April 30, 2019 were as follows (in thousands):


	April 30, 2019
			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

The amortized cost and fair value of the held-to-maturity securities by contractual maturity at January 25, 2020 were as follows (in thousands):


	Cost		Fair Value
Due within one year	$	135,302	$	135,418
Due after one year through five years		21,462		21,478
Total	$	156,764	$	156,896

Available-For-Sale Securities

Variable Rate Demand Notes

Variable rate demand notes (“VRDNs”) are floating rate municipal instruments usually with long maturities (commonly 20 or 30 years), and carry a coupon that resets periodically. VRDNs are classified as short-term based on their highly liquid nature and because they represent the investment of cash that is available for current operations. Despite the long-term nature of their stated contractual maturities, VRDNs typically have either a one- or seven-day put option which allows investors to put the security back to the remarketing agent at par value plus accrued interest in the event the Company decides to liquidate its investment in a particular VRDN.

The amortized cost and fair value of the available-for-sale debt securities by contractual maturity at January 25, 2020 were as follows (in thousands):


	Cost		Fair Value
Due after 20 years	$	13,200	$	13,200
Total	$	13,200	$	13,200

Investment in Limited Partnership Fund

During the three months ended July 27, 2019, the Company made its initial capital contribution to a limited partnership fund focusing on highly relevant technologies and start-up companies serving defense and industrial markets. This investment does not have readily determinable fair values. The Company has elected to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

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, 2019		Changes in				January 25, 2020
	Carrying		Fair Value		Sales or		Carrying
	Value		Reflected in Net Income		Purchases		Value
Variable rate demand notes	$	—	$	—	$	13,200	$	13,200
Investment in limited partnership		—		—		4,947		4,947
Total available-for-sale investments	$	—	$	—	$	18,147	$	18,147

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.