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Marketable Securities
 3 Months Ended
Jul. 31, 2012
Marketable Securities

5. Marketable Securities

As of July 31, 2012, marketable securities consisted of the following:

 

     Trading
(1)(3)		     Available-for-
Sale (2)(3)		     Total  
     (in thousands)  

Mutual funds

    $ 91,145      $ —        $ 91,145   

Corporate bonds

      —          38,400        38,400   

Commercial paper

      —          3,997        3,997   

U.S. Treasury and agency securities

      —          3,005        3,005   
  

 

 

    

 

 

    

 

 

  

Total

      91,145        45,402        136,547   

Less: current portion of marketable securities

      (4,198 )      (26,823 )      (31,021 ) 
  

 

 

    

 

 

    

 

 

  

Non-current marketable securities

    $ 86,947      $ 18,579      $ 105,526   
  

 

 

    

 

 

    

 

 

  

 

As of April 30, 2012, marketable securities consisted of the following:

 

     Trading
(1)(3)		     Available-for-
Sale (2)(3)		     Total  
     (in thousands)  

Mutual funds

    $ 82,176      $ —        $ 82,176   

Corporate bonds

      —          44,563        44,563   

Commercial paper

      —          5,989        5,989   

U.S. Treasury and agency securities

      —          3,006        3,006   
  

 

 

    

 

 

    

 

 

  

Total

      82,176        53,558        135,734   

Less: current portion of marketable securities

      (7,613 )      (33,323 )      (40,936 ) 
  

 

 

    

 

 

    

 

 

  

Non-current marketable securities

    $ 74,563      $ 20,235      $ 94,798   
  

 

 

    

 

 

    

 

 

  

 

(1) These investments are held in trust for settlement of the Company’s obligations of $91.6 million and $82.6 million as of July 31, 2012 and April 30, 2012, respectively, under the Executive Capital Accumulation Plan (“ECAP”) (see Note 6 — Deferred Compensation and Retirement Plans). The fair value of marketable securities classified as trading (held in trust to satisfy obligations under the ECAP) decreased by $0.8 million and $1.6 million during the three months ended July 31, 2012 and 2011, respectively, recorded in other loss, net on the consolidated statements of income. The remaining activity is comprised primarily of Company and employee contributions made of $17.5 million and $1.3 million, respectively, offset by distributions of $9.0 million for the three months ended July 31, 2012.

 

(2) These securities represent excess cash invested, under our investment policy, with a professional money manager.

 

(3) The Company’s financial assets measured at fair value on a recurring basis include, trading securities classified as Level 1 and available-for-sale securities classified as Level 2. As of July 31, 2012 and April 30, 2012, the Company had cash equivalents of $55.1 million and $60.5 million, respectively, and restricted cash in both periods of $10.1 million classified as Level 1.

The amortized cost and fair values of marketable securities classified as available-for-sale investments were as follows:

 

     July 31, 2012  
     Amortized
Cost		      Gross
Unrealized
Gains		      Gross
Unrealized
Losses (1)		     Estimated
Fair Value		  
     (in thousands)  

Corporate bonds

    $ 38,293       $ 108       $ (1 )    $ 38,400   

Commercial paper

      3,997         —           —          3,997   

U.S. Treasury and agency securities

      3,005         —           —          3,005   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total

    $ 45,295       $ 108       $ (1 )    $ 45,402   
  

 

 

     

 

 

     

 

 

    

 

 

  
     April 30, 2012  
     Amortized
Cost		      Gross
Unrealized
Gains		      Gross
Unrealized
Losses (1)		     Estimated
Fair Value		  
     (in thousands)  

Corporate bonds

    $ 44,498       $ 81       $ (16 )    $ 44,563   

Commercial paper

      5,993         1         (5 )      5,989   

U.S. Treasury and agency securities

      3,006         —           —          3,006   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total

    $ 53,497       $ 82       $ (21 )    $ 53,558   
  

 

 

     

 

 

     

 

 

    

 

 

  

 

(1) There are no marketable securities that have been in a continuous unrealized loss position for 12 months or more.

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 July 31, 2012 and April 30, 2012, the Company’s investments associated with cash equivalents, including restricted cash, consist of money market funds for which market prices are readily available. As of July 31, 2012 and April 30, 2012, marketable securities classified as available-for-sale consist of corporate bonds, commercial paper and U.S. Treasury and agency securities, all for which market prices for similar assets are readily available. As of July 31, 2012, available for sale marketable securities have remaining maturities ranging from one month to 3.0 years. Investments in marketable securities classified as trading are based upon investment selections the employee elects from a pre-determined set of securities in the ECAP and the Company mirrors these elections. As of July 31, 2012 and April 30, 2012, the Company’s investments in marketable securities classified as trading consist of mutual funds for which market prices are readily available.

As of July 31, 2012 and April 30, 2012, the Company’s marketable securities classified as trading were $91.1 million (net of gross unrealized gains of $2.4 million and gross unrealized losses of $0.7 million) and $82.2 million (net of gross unrealized gains of $3.5 million and gross unrealized losses of $0.4 million), respectively.