XML 37 R12.htm IDEA: XBRL DOCUMENT
v3.19.3

Financial Instruments | 6 Months Ended
--- | ---
Oct. 31, 2019
Investments All Other Investments [Abstract] |
Financial Instruments | 5. Financial Instruments The following tables show the Company’s financial instruments and balance sheet classification as of October 31, 2019 and April 30, 2019:
|  | October 31, 2019 |
|  | 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 |  |  | Other Accrued Liabilities |
|  | (in thousands) |
Level 1: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash |  | $ | 459,313 |  |  | $ | — |  |  | $ | — |  |  | $ | 459,313 |  |  | $ | 459,313 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Money market funds |  |  | 5,110 |  |  |  | — |  |  |  | — |  |  |  | 5,110 |  |  |  | 5,110 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Mutual funds (1) |  |  | 137,601 |  |  |  | 7,560 |  |  |  | (598 | ) |  |  | 144,563 |  |  |  | — |  |  |  | 6,508 |  |  |  | 138,055 |  |  |  | — |  |  |  | — |
Total |  | $ | 602,024 |  |  | $ | 7,560 |  |  | $ | (598 | ) |  | $ | 608,986 |  |  | $ | 464,423 |  |  | $ | 6,508 |  |  | $ | 138,055 |  |  | $ | — |  |  | $ | — |
Level 2: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency forward contracts |  | $ | — |  |  | $ | 1,301 |  |  | $ | (548 | ) |  | $ | 753 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 753 |  |  | $ | — |
Interest rate swap |  | $ | — |  |  | $ | — |  |  | $ | (666 | ) |  | $ | (666 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (666 | )
|  | April 30, 2019 |
|  | 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) |
Level 1: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash |  | $ | 579,998 |  |  | $ | — |  |  | $ | — |  |  | $ | 579,998 |  |  | $ | 579,998 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Money market funds |  |  | 46,362 |  |  |  | — |  |  |  | — |  |  |  | 46,362 |  |  |  | 46,362 |  |  |  | — |  |  |  | — |  |  |  | — |
Mutual funds (1) |  |  | 135,439 |  |  |  | 6,301 |  |  |  | (989 | ) |  |  | 140,751 |  |  |  | — |  |  |  | 8,288 |  |  |  | 132,463 |  |  |  | — |
Total |  | $ | 761,799 |  |  | $ | 6,301 |  |  | $ | (989 | ) |  | $ | 767,111 |  |  | $ | 626,360 |  |  | $ | 8,288 |  |  | $ | 132,463 |  |  | $ | — |
Level 2: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency forward contracts |  | $ | — |  |  | $ | 821 |  |  | $ | (722 | ) |  | $ | 99 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 99 |
Interest rate swap |  | $ | — |  |  | $ | 619 |  |  | $ | — |  |  | $ | 619 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 619 |
(1) | These investments are held in trust for settlement of the Company’s vested obligations of $131.5 million and $122.3 million as of October 31, 2019 and April 30, 2019, respectively, under the ECAP (see Note 7 — Deferred Compensation and Retirement Plans). Unvested obligations under the deferred compensation plans totaled $23.2 million and $24.6 million as of October 31, 2019 and April 30, 2019, respectively. During the three and six months ended October 31, 2019, the fair value of the investments increased; therefore, the Company recognized a gain of $1.2 million and $3.1 million, respectively, which was recorded in other income (loss), net. During the three and six months ended October 31, 2018, the fair value of the investments decreased; therefore, the Company recognized a loss of $4.8 million and $0.8 million, respectively, which was recorded in other income (loss), net.
Investments in marketable securities are based upon investment selections the employee elects from a pre-determined set of securities in the ECAP, and the Company invests in marketable securities to mirror these elections. As of October 31, 2019 and April 30, 2019, the Company’s investments in marketable securities consisted of mutual funds for which market prices are readily available. Designated Derivatives - Interest Rate Swap Agreement In March 2017, the Company entered into an interest rate swap contract with a notional amount of $129.8 million, to hedge the variability to changes in cash flows attributable to interest rate risks caused by changes in interest rates related to its variable rate debt. The Company has designated the swap as a cash flow hedge. As of October 31, 2019, the notional amount was $99.7 million. The interest rate swap agreement matures on June 15, 2021, and locks the interest rates on a portion of the debt outstanding at 1.919%, exclusive of the credit spread on the debt. The fair value of the derivative designated as a cash flow hedge instrument was as follows:
|  | October 31, 2019 |  |  | April 30, 2019 |
|  | (in thousands) |
Derivative asset: |  |  |  |  |  |  |  |
Interest rate swap contract |  | $ | — |  |  | $ | 619 |
Derivative liability: |  |  |  |  |  |  |  |
Interest rate swap contract |  | $ | 666 |  |  | $ | — |
During the three and six months ended October 31, 2019 and 2018, the Company recognized the following gains and losses on the interest rate swap:
|  | Three Months Ended October 31, |  |  | Six Months Ended October 31, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
|  | (in thousands) |
(Losses) gains recognized in other comprehensive income (net of tax effects of $(111), $67, $(283) and $120, respectively) |  | $ | (315 | ) |  | $ | 193 |  |  | $ | (806 | ) |  | $ | 342 |
Gains reclassified from accumulated other comprehensive income into interest expense, net |  | $ | 55 |  |  | $ | 64 |  |  | $ | 196 |  |  | $ | 86 |
As the critical terms of the hedging instrument and the hedged forecasted transaction are the same, the Company has concluded that the changes in the fair value or cash flows attributable to the risk being hedged are expected to completely offset at inception and on an ongoing basis. We estimate that $0.4 million of derivative losses included in accumulated other comprehensive income (loss) as of October 31, 2019 will be reclassified into interest expense, net within the following 12 months. The cash flows related to the interest rate swap contract are included in net cash provided by operating activities. Foreign Currency Forward Contracts Not Designated as Hedges The fair value of derivatives not designated as hedge instruments are as follows:
|  | October 31, 2019 |  |  | April 30, 2019 |
|  | (in thousands) |
Derivative assets: |  |  |  |  |  |  |  |
Foreign currency forward contracts |  | $ | 1,301 |  |  | $ | 821 |
Derivative liabilities: |  |  |  |  |  |  |  |
Foreign currency forward contracts |  | $ | 548 |  |  | $ | 722 |
As of October 31, 2019, the total notional amounts of the forward contracts purchased and sold were $55.1 million and $47.9 million, respectively. As of April 30, 2019, the total notional amounts of the forward contracts purchased and sold were $51.4 million and $40.0 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 six months ended October 31, 2019, the Company incurred gains of $2.1 million and $0.5 million, respectively, related to forward contracts, which is recorded in general and administrative expenses in the accompanying consolidated statements of income. These foreign currency gains offset foreign currency losses that result from transactions denominated in a currency other than the Company’s functional currency. During the three and six months ended October 31, 2018, the Company incurred losses of $0.2 million and $0.1 million, respectively, related to forward contracts, which is recorded in general and administrative expenses in the accompanying consolidated statements of income. These foreign currency losses offset foreign currency gains 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 net cash used in operating activities.

X
- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
Name: | us-gaap_FinancialInstrumentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsAllOtherInvestmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration